Fintech
Cybersecurity is key to securing the future of financial services
A Mayer Brown study titled “The Next Organization” surveyed 197 financial services leaders, revealing that cybersecurity is critical to future-proofing businesses. Nearly 80% of financial services leaders feel unable to plan because of their organization’s vulnerability to cyberattacks.
Finance’s IT Concern
A staggering 79% of financial institutions and 77% of investment firms cite cyber vulnerability as a top concern impacting their transformation plans. This concern is warranted, as cloud intrusions have increased 75%, according to CrowdStrike.
Cloud computingpowered by artificial intelligence, plays a significant role in transforming operations. However, given the stringent regulations surrounding financial data, keeping information offsite presents significant risks. For example, Equifax paid more than $1 billion in fines following a 2017 data breach that affected 150 million consumers.
Raj De, leader of Mayer Brown’s global Cybersecurity & Data Privacy practice, notes, “We are seeing companies, organizations and nations falling victim to increasingly sophisticated cyberattacks. There are a lot of moving parts here, and companies must navigate the complex and ever-changing cybersecurity landscape.”
While recognizing the need for technological resilience—69% of financial institution leaders and 77% of investment firm leaders recognize the importance of robust defenses against cyberattacks and AI advances; a gap remains between goals and reality. A significant 72% of financial institution leaders and 73% of investment firm leaders admit that their organizations are struggling to keep pace with rapid developments in AI.
Securing the future of finance
As cybersecurity grows in importance, a Trend Micro study highlights a troubling communication gap between IT security leaders and the C-suite, with IT leaders feeling pressured to downplay cyber risks in the boardroom. This, combined with a cyber insurance market that often fails to cover the costs of breaches, underscores the multifaceted challenge that lies ahead.
AI-powered cyber defenses offer hope. Oliver Yaros, a partner at Mayer Brown, says: “AI-powered cybersecurity tools and systems can provide more advanced solutions data protectiondiluting threats by recognizing patterns, automating processes, and highlighting anomalies.”
The study reveals that 77% of investment firms and 69% of financial institutions see the need to demonstrate resilience against cyberattacks and keep pace with advances in artificial intelligence. While understanding the threat is essential, action is imperative. Financial firms must address their shortcomings, recognizing the link between cybersecurity and growth, to avoid future financial repercussions.
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