In an Age of Cyber Risk, Digital Transformation is No Longer Optional

"Concerns that outdated legacy systems could be leaving firms vulnerable to mounting cyber risks are driving a wave of technology spending in the financial services industry. Cybersecurity and operational resilience have become top-of-mind priorities for financial services professionals amid a sharp uptick in high-profile data breaches, ransomware attacks, and system failures. The threat landscape is becoming more sophisticated, with bad actors sharing knowledge, growing funding, and using artificial intelligence and other new tools to automate attacks."

"With risks evolving and multiplying, senior leadership and technology experts at financial services firms realize it's no longer a question of if an attack will happen, but whether their organization will be ready when it does. In making that assessment, many firms are coming to the conclusion that their reliance on legacy technology platforms could be leaving them at risk."

"Almost 90% of financial services firms in that study are planning to make moderate to large investments in cybersecurity this year. Now the question becomes: How can organizations spend that money most effectively to enhance cybersecurity and operational resilience? Firms looking for security and resilience can achieve some of the highest returns on investment by directing resources to digital transformation efforts that modernize the overall technology stack, in addition to investing in cyber resilience."

Outdated legacy systems are increasing cyber risk across the financial services industry and prompting significant technology spending. Cybersecurity and operational resilience have become priorities amid rising data breaches, ransomware attacks, and system failures. Threat actors are growing more sophisticated, sharing knowledge, securing more funding, and leveraging artificial intelligence and automation. Many firms no longer view attacks as hypothetical and are assessing readiness. Approximately 45% of over 500 financial services technology and operations executives report legacy systems limit resiliency strategy. Nearly 90% of firms plan moderate to large cybersecurity investments, with high ROI expected from digital transformation that modernizes technology stacks and reduces data silos. More than a third still lack cybersecurity technologies in core operational infrastructure.

Read at Securitymagazine