With the drastic technology-led changes transforming financial services, industry decisionmakers have good reason to be data obsessed: The competition requires it. Everyone from bulge bracket banks to fintech startups are delivering data-driven solutions over digital channels. While this has led to improved efficiency and facilitated game-changing innovations across the industry, it has created challenges too.
The IT infrastructure required to support these changes is only growing more complex and costly. Seventy-four percent of respondents to a recent Harvard Business Review survey say IT environments will become significantly more complex at their organization within the next 18 months. On top of that, regulators are demanding access and introducing policies to govern how firms collect and protect these new data streams. Most critically, there is a growing host of cybercriminals looking to take advantage of the surge in traffic to these new digital channels.
Growing Risk in a Data-Driven World
As the pandemic encouraged the adoption of online service models, it also provoked cyberattack activity. According to Neustar’s Cyber Threats & Trends Report: First Half 2020, there were 2.5 times as many attacks in the first half of 2020 as the same period in 2019, and the volume and intensity of attacks also increased year over year. Financial institutions face a staggering array of daily raids from bots and bad actors intent on enriching themselves. This happens through illicit account registrations, fraudulent transactions and malicious malware.
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