Earlier this week, Amazon Web Services (AWS), a cloud-computing service provider, suffered a major outage that affected much of the Internet. Although many Internet-wide outages are caused by malicious intent, this event was caused by a typo. Since so many web services are reliant on AWS, this outage has reignited the debate surrounding internet dependencies and security. FinTech is highly integrated with Internet access, so insufficient security/backup providers are also an issue.
A study in the first quarter of 2016 found that there have been 40% more attacks targeting financial institutions. A Deloitte study also found that many members of management at various firms are concerned with IT security. However, talent in this field is still lacking and is difficult to attract and attain; there is often only one person responsible for cybersecurity at an entire firm.
Since FinTech clearly has a technology component, I believe FinTechs should be aware of the impact cybersecurity (and lack thereof) has on their entire businesses. While there are many FinTech products/services that serve the average consumer, many are not trusted because of the lack of apparent security. This leaves room for growth as they continue to improve not only existing offerings but the security of these services.
Source: http://www.valuewalk.com/2017/03/fintech-cyber-security-risks/
Isn’t addition of the CSO(Chief Security Officer) post to executive list an indication of this increased importance in Cybersecurity?