Why is it Important for the Financial Institutes to Secure the...

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Why is it Important for the Financial Institutes to Secure the Cybersecurity

CFO Tech Outlook | Tuesday, August 04, 2020

It is important that the banks must keep track of their cybersecurity due to the increasing implementation of technology.

FREMONT, CA: The financial service companies are at the forefront of the enterprise cybersecurity trends in the banking sector. Over the years, banks have become one of the top targets for cybercriminals because they store and process massive commercial and consumer data each day. Therefore, the banks are increasingly applying innovative cybersecurity due to the threat of financial loss, reputational damage, and regulatory consequences. 

However, consumers have also started to communicate with financial services in new methods and with the help of new channels. And with this progress, various new cyber threats are also arising. 

Addressing the issues related to mobile apps and web portals

The demand for cashless payments is increasing because of the e-commerce market. Due to this, customers prefer online or cashless payments in banks also. Therefore, the banks have to invest in mobile and web-based solutions so that it becomes easy for consumers to conduct payments and transfers. But such technological applications can also develop new vulnerabilities, and the banks need to take care of it as soon as possible. 

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However, it is not just mobile for which the banks have to deal with issues because web-based banking is there for a long time, but the absence of security is the main problem. 

The customer will not shift their habit and conduct their payment through cash or by visiting the local bank branches anytime soon. Therefore, to maintain consumer trends and evade security risks, the financial institutes must invest in better cybersecurity practices for the web and mobile platforms. 

Investigating third-party services

Another major area where the banks are concerned about their cybersecurity is monitoring the third parties and the rules they follow to protect their cybersecurity. The banks expose their essential infrastructure to threats if they lose control over ingress and egress points. Moreover, the third parties have already started to develop their security environments to pieces. 

Therefore, the banks have to be careful and focus on examining their APIs and enhancing their security structures to understand better the risks related to collaborating with third parties. 

See also: Top Cyber Security Consulting/ Services Companies

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