The Importance of Cybersecurity in Financial Services

Financial services companies are facing increasing cyber threats that can compromise sensitive customer data and damage their reputation. In this article, we will discuss the key points on the importance of cybersecurity for financial services companies and provide recommendations for future-proofing their environments.

Regulatory Compliance and Cybersecurity Maturity

70% of companies believe that increased compliance with regulations causes their organizations to mature their cybersecurity capabilities.
Regulatory compliance is a driving force behind the maturity of cybersecurity capabilities in financial services companies.

Underspending on Cybersecurity

70% of respondents believe they are underspending on cybersecurity and should spend more, with only 13% of the overall IT budget allocated to cybersecurity on average.
Financial services companies need to allocate a significant portion of their IT budget to cybersecurity to effectively protect themselves against cyber threats.

Future-Proofing is Essential

Financial services companies need to future-proof their technologies by getting ahead of emerging regulations before their implementation.
Future-proofing is crucial for financial services companies to stay ahead of emerging regulations and technologies.

Talent and Cybersecurity Capabilities

Companies rely on talent to address capability gaps, but 65% have concerns about gaining and retaining appropriately skilled cybersecurity talent.
The shortage of skilled cybersecurity talent can be a significant challenge for financial services companies.

Special Initiatives and Emerging Technologies

Many companies have launched special initiatives to address security control gaps related to the adoption of emerging technologies.
Financial services companies need to invest in protecting their environments from growing cyber risks, with a focus on emerging technologies such as AI.

Recommendations for Financial Institutions

Lay the Foundation for Action

Future-proofing is essential: Ask yourself questions about your pursuit of emerging technologies.
Lay the foundation for action by assessing your current cybersecurity posture and identifying areas for improvement.

Align Technology Priorities with Security Capabilities

Align technology priorities with security capabilities: Ensure that technology priorities are aligned with security capabilities and maturity levels.
Make informed decisions on technology investments based on security capabilities, especially IAM capabilities.

Establish Transparent Metrics and Reporting

Establish transparent metrics and reporting: Develop value-based metrics to manage cyber risks, monitor performance, inform decisions, and identify emerging issues.
Establish a culture of transparency and accountability by regularly reporting on cybersecurity performance.

Invest in the Right Things

Invest in the right things: Make informed decisions on technology investments based on security capabilities, especially IAM capabilities.
Prioritize investments that address critical security control gaps related to emerging technologies.