Keeping Financial Services safe as technology trends transform banking

Last year reports of cybersecurity incidents targeting UK financial services providers skyrocketed by more than half in comparison with previous year and the trend continues this year, at even faster pace, fuelled with Global events. While financial institutions are some of the best protected with ‘industry leading’ Cyber defence and response capabilities, it remains an ever-increasing challenge.

As the finance sector works to stay ahead of these seemingly omnipresent bad actors, there is a pattern emerging. The larger institutions regularly appear to be responding well when it comes to flexing their cyber resilience: being prepared, detecting threats and many even going into cyber offensive mode using AI and deep-dark web mining for threats. However, the new age fin-techs and other smaller entities are looking at strengthening their cyber defences through base level - native technology controls and cyber hygiene boosters.

For SMEs in particular, with smaller budgets and less resources, this can be quite overwhelming – leaving many business leaders uncertain on a pertinent question - Where to start? This is important.  Our SMEs make up 99.9% of the UK’s business force and ensuring their cyber health is reinforced is of national importance. The reality is that SME’s often underestimate their technology, process and people needs, particularly when it comes to cybersecurity and data protection – and in the financial services sector this is more important than ever.

Hence it becomes alarming, that while cyber security is an evolving challenge for the financial sector, the ways in which businesses protect themselves remains largely the same and ‘assumed’. What’s more, as technology trends evolve cyber security needs to be central to the enablement of business to remain resilient. When it comes to adapting business practices – regardless of organisation size – trends in the technology sector are essential to consider in order to remain future-ready.

There are three technology trends that are transforming the financial sector – and will impact cyber security.

 1. Employee care takes centre stage

The banking sector is more people-centric than ever before – following a general business trend. Companies are looking for the best talent to work with, to remain as secure as possible. This requires a holistic approach to employee satisfaction, wellness and progress. Happy employees will work with greater care and commitment to good cyber hygiene. The same level of professionalism and holistic employee care is sought after from external technology partners as it is in-house. This ensures the due diligence and cyber awareness required to keep business safe across the whole business. The Cyber Security Breaches Survey 2022 found that of the businesses who identified a cyber-attack, the most common threat vector was phishing (83%). This reinforces the need for a people-first approach to cyber hygiene.

 2. Holistic tech partners are in demand

By working with technology partners that have strong relationships across a variety of sectors, businesses are able to tailor their own services according to various needs. With access to experts in innovation across fields, businesses can focus more heavily on their customers’ specific needs and prepare a future-proof banking model. When it comes to cyber security this particularly important. Cyber strategy needs to not only take into account the sensitivity of financial data, but also the nuances of the verticals they serve. Tech partners that have the full cross-sector view are better placed to support financial organisations with a broad remit.

3.  Hyper-personalised, tech-enabled business strategy

The provision of tailored services from technology vendors to the needs of specific businesses enables them to successfully transform – and ultimately provide winning products that target customer needs. By working with a technology partner that works with businesses at all stages of their digital transformation journeys – from identifying challenges to implementing solutions – both parties will be prepared for possible future challenges, while also remaining competitive. This is especially true in the financial services sector. As these services become increasingly data-driven and hyper-targeted, cyber strategies need to evolve to address the resulting complexities. This includes ongoing awareness initiatives to update cyber hygiene practices among both employees and customers.

Business, technology, and cyber security is inextricably entwined – you cannot have progress in one area without the other.  As technology trends drive changes in the financial sector, ensuring cyber security practices keep up is key no matter the size of the organisation. But with the right technology partner and the provision of cross-sector, people-focused services they can ensure their progress is based on a robust foundation fit for the future of banking.