Advancement in fintech has led conglomeration of financial industry with digital industry like never before. But while merger of two worlds helped broadening the reach, flexibility, and level of innovation to finance industry, this also bought along the bad side, i.e. cybersecurity. To give a perspective, just a year ago, in 2015 there was a cybersecurity attack ‘JP Morgan hack’, which is considered to be ‘the largest theft of customer data from a U.S. financial institution in history’. Incidents like such proves that there is a constant need to improve and enhance cybersecurity.
Hacks, security breaches, and a lack of trust by consumers is becoming commonplace. The need for new solutions is becoming more obvious, and IT and fintech security budgets across the private and public sectors are increasing accordingly. As a result, cyber security has become the fastest-growing sector in IT. The global spending for cyber security was nearing $76.1 billion in 2015—and that number is expected to rise to $170 billion by 2020(Source: Gartner).
The last thing any financial institute wants is to become the victim of a crime. The result could be a massive loss of customers, a damaged brand reputation, and legal and financial liabilities that may be impossible to recover from.
(reference: https://centricdigital.com/blog/fintech/is-your-data-safe-fintech-security-challenges-and-solutions/)