Financial Institutions Prioritize Cybersecurity Amid Rapid Technological Advancements
As the financial services industry continues to evolve at a rapid pace, institutions are recognizing the importance of cybersecurity maturity. According to a recent survey, 70% of companies believe that increased compliance with regulations is driving their organizations to mature their cybersecurity capabilities.
Regulatory Compliance Drives Cybersecurity Maturity
The desire for increased protection against security breaches is no surprise, but what’s notable is the emphasis on regulatory compliance as a key factor in achieving this goal. Financial institutions are recognizing the need to stay ahead of emerging technologies and regulations by proactively incorporating compliance into their adoption strategies.
Underspending: A Growing Concern
The survey also revealed that 70% of respondents believe they are underspending on cybersecurity, with no organizations reporting overspending. This marks a significant shift from previous surveys, highlighting the growing recognition of the need for increased investment in this area.
- Only 13% of overall IT budgets are currently allocated to cybersecurity.
- Experts predict that spend will increase over the next two to three years, particularly among regional banks.
Addressing Emerging Risks
Many companies are acknowledging that they are not prepared to mitigate risks associated with emerging technologies and are implementing special initiatives and controls to secure their environments. However, this added spending may only exacerbate existing budget strains.
Talent Gap: A Major Concern
Efforts to close security capability gaps often revolve around recruiting new talent and upskilling existing staff. Despite 65% of respondents expressing concerns about gaining and retaining appropriately skilled cybersecurity talent, companies are relying on internal resources to address these gaps.
- Financial institutions may need to explore alternative options, such as leveraging technology to augment their talent or seeking external expertise, to effectively address the growing demand for cybersecurity professionals.
Future-Proofing the Environment
As the technology landscape continues to evolve at a rapid pace, financial institutions must take proactive steps to future-proof their environments. This requires laying the foundation by asking fundamental questions about emerging technologies and security capabilities.
- By prioritizing cybersecurity, investing in the right technologies, and addressing talent gaps, financial institutions can ensure they are prepared for the challenges ahead.
- With mounting risks on the horizon, the time for action is now.