The financial services industry has embraced the power of cloud-based technology and as a result, there’s been a widescale reinvention of the industry. Large firms are getting larger, and new firms can compete for the wealth management dollar with the benefits of scalable technology. Fintech firms have grown at a rate of 41% over the past 4 years with over $40 billion dollars in cumulative investment according to PWC. 82% of firms plan to increase fintech partnerships over the next three to five years.
Cloud technologies allow firms to cut costs for infrastructure, scale, improve efficiency, and provide instant information to their customers who have grown accustomed to convenience. With this shift to the cloud, a wave of sensitive data has followed – leaving firms vulnerable to cybersecurity threats resulting in data theft and fraud. Firms are using untraditional methods to tackle internal and external threats – in an arms race to secure their sensitive data and customer trust.
Threat Landscape for Financial institutions and Banks
Financial services is the highest targeted industry of all, facing 65% more attacks than any other industry. In 2017, 200 million records were breached resulting in a 937% increase year over year. Ransomware, DDoS attacks, malware, phishing, and insiders threaten their ability to service customers and secure sensitive data. Fear of data loss and reputational damage from the next “big breach” stem from fallen firms who have lost the trust of their clients and who’s names have been splashed in the media. So, how do security teams and executives prioritize threat defenses? Where are their dollars best spent to protect their organization?