Cybersecurity Disconnects Pose Huge Risks for Financial Services Companies
As financial services companies rapidly invest in emerging technologies, they are struggling to keep pace with the growing level of risk associated with these technologies. A recent survey reveals that a significant disconnect exists between the adoption of new technologies and the capabilities to secure them.
The Current State of Cybersecurity in Financial Services
According to the survey, 70% of financial services organizations acknowledge that increased compliance with regulations drives their efforts to mature their cybersecurity capabilities. However, only 13% of their overall IT budget is currently dedicated to cybersecurity, with many companies recognizing they are underspending in this area.
The Impact of Emerging Technologies on Cybersecurity
The survey also found that while companies are investing heavily in emerging technologies such as:
- Cloud computing
- Edge computing
they are not allocating sufficient funds to secure these environments. In fact, more than 40% of respondents have launched special initiatives to address the security control gaps related to the adoption of these technologies.
The Need for Strengthened Cybersecurity Capabilities
To future-proof their environments, financial services companies must strengthen their cybersecurity capabilities now. This includes:
- Investing in the right talent to address capability gaps
- Implementing special initiatives to secure emerging technologies
The survey found that only 65% of respondents are confident they have the right talent to handle their particular security risks.
The Call to Action for Financial Institutions
The call to action is clear: financial institutions must lay the foundation for action by asking themselves key questions about their pursuit of emerging technologies, including:
- Do we have the right technology priorities and are they aligned with our security capabilities?
- Do we have the right metrics and reporting to manage cyber risks effectively?
- Are we investing in the right things to secure our environments?
The Consequences of Failure
Failure to address these disconnects poses huge risks for financial services companies, which must prioritize cybersecurity now to protect themselves against growing threats.