Financial Crime World

Here’s the article converted into markdown format with proper headings, subheadings, and bullet points:

Cybersecurity Risks for Financial Institutions in Egypt Threaten Profitability

===========================================================

Cairo - The rapid adoption of financial technology (fintech) in Egypt has transformed the banking industry, but it has also exposed banks to a growing threat: cybersecurity risks. A new study has found that cyber risk has a significant and negative impact on bank profitability in Egypt.

Cybersecurity Risks Exposed by Fintech Adoption

The study analyzed data from 16 Egyptian banks between 2017 and 2022, finding that cyber risk is a major concern for financial institutions in the country. The researchers used panel data analysis to investigate the relationship between cyber risk and bank profitability, revealing stark findings.

Negative Impact on Bank Profitability

  • Cyber risk has a negative significant effect on bank profitability.
  • Return on assets (ROA) and gross profit margin (GPM), two key indicators of bank profitability, are significantly impacted by cyber risk.

Experts Weigh In: Proactive Measures Needed

Financial institutions in Egypt need to invest in cybersecurity measures to protect themselves from cyber threats. Some recommended steps include:

  • Implementing robust security protocols
  • Conducting regular risk assessments
  • Training employees on cybersecurity best practices

Investing in Cybersecurity is Crucial for Fintech Adoption

“The banking industry in Egypt needs to take a proactive approach to cybersecurity to ensure that it remains robust and profitable in the digital era,” said Dr. Farid Moharram, co-author of the study. “This includes investing in technology and data security measures to prevent cyber attacks and protect customer data.”

Timely Findings for a Growing Fintech Sector

The study’s findings are timely, given the growing importance of fintech in Egypt’s financial sector. As more banks adopt digital technologies to enhance their services and operations, they must also prioritize cybersecurity to protect themselves from the increasing number of cyber threats.

By prioritizing cybersecurity, Egyptian banks can ensure a secure and profitable future in the digital era.