Companies Struggle to Keep Up with Rapid Pace of Cybersecurity Adoption
As financial institutions continue to rapidly invest, pilot, and deploy emerging technologies, they are facing a growing disconnect between their cybersecurity capabilities and the increasing level of risk associated with these technologies. A recent survey found that 70% of companies believe they are underspending on cybersecurity and should increase spending by more than 20%.
Compliance Drives Cybersecurity Maturity
Increased compliance with regulations is driving financial institutions to mature their cybersecurity capabilities, with 70% of respondents citing this as a major factor. However, regulatory compliance should be approached as the minimum baseline of expectations rather than an aspirational goal.
Cybersecurity Spending on the Rise
Financial-services companies devote an average of 13% of their overall IT budget to cybersecurity. While there is expected to be increased funding in the next two to three years, many companies are struggling to allocate resources effectively. Special initiatives to address growing cyber risk may only add to existing budget strains.
Talent Gap Worsens
Efforts to close security capability gaps typically revolve around recruiting new talent and upskilling existing talent. However, 65% of respondents reported concerns about gaining and retaining appropriately skilled cybersecurity talent. Companies may need to consider alternative options, such as technology augmentation, to address the growing talent gap.
Future-Proofing the Environment
As the technology landscape in the financial services industry continues to evolve rapidly over the next three to five years, companies must take action now to future-proof their environments. Financial institutions should ask themselves four key questions about their pursuit of emerging technologies:
- Do we have the right technology priorities and are they aligned with our security capabilities?
- Do we have the right metrics and reporting in place?
- Are we investing in the right things?
- Are we prepared to mitigate risks associated with emerging technologies?
By addressing these disconnects, financial institutions can protect themselves against the growing level of risk associated with emerging technologies.