The financial services industry is in a state of flux. Traditional methods of handling customer information and financial data are firmly entrenched, while new fintech models and opportunities disrupt the industry. These technologies provide exciting innovations, but can also allow for security threats.
In recent weeks, millions of debit accounts were breached in India caused by malware on an ATM network, and in May the Bangladeshi central bank was hacked in one of the biggest-ever cyber heists. How can the industry leverage new and existing technologies while remaining secure against ever more sophisticated threats?
I’ve broken down the main challenges facing cybersecurity leaders into three buckets:
- The need to adopt new safeguards for digital business models.
- Implementing business-critical threat intelligence and information-sharing programs.
- Securing the potential of the Internet of Things (IoT).
These are significant issues but, with a proactive approach, these challenges are surmountable.
New safeguards for new business models
For many legacy systems, including Wall Street, a shifting financial regulatory landscape hamstrings attempts to create new business models. Many large financial institutions and banks feel that the infrastructure issues a number of these new regulations impose provide almost impenetrable barriers to success.
However, there is an alternative way of thinking about this. New technologies like advanced analytics processing and big data allow financial services to easily comply with regulations thanks to a more robust audit trail. Complying with regulation gives banks a competitive edge with customers, showing a commitment to trust and security. The ability to process faster than ever before makes compliance less of a burden.
Better intelligence and information sharing
New technologies like the blockchain and distributed ledger technology secure data and protect it from forgery. Encryption allows data to be shared and kept honest by consensus algorithms that keep all parties updated, secure, and informed.
Thanks to developments like these, financial information will be readily available faster and more shareable than ever before. And it isn’t a pipe dream. Estimates put 65 percent of the financial sector using the blockchain in the next 3 years.
It’s highly likely that in order to keep pace with technological development (and in a secure manner), the data center will need to expand to unheard capacities. Machine learning, advanced analytics, and data management will require data centers to keep up. Luckily, Intel has that matter in hand.
A robust and secure IoT
The IoT offers plenty of new opportunities for financial transformation, but unfortunately, a growing number of smart and connected devices mean greater opportunities for security breaches. On top of that, security threats are becoming more and more agile. For example, in Singapore, ransomware is becoming a serious problem for consumers and businesses.
When cybercriminals have multiple avenues of attack, it’s essential that every component of the customer journey, from smartphone apps to sensors, is secured. The Intel IoT Platform is designed to meet the scalability needs of any business, while also ensuring every node is secure and protected.
Hopefully, I’ve provided an idea of what’s at stake for the future of the financial industry, and how Intel is working towards a smarter, secure, and more connected reality. Discover our financial services solutions and what we can do for you.