Share
Beitragsbild zu Technologies Shaping Fintech Cybersecurity and Compliance in 2024

Technologies Shaping Fintech Cybersecurity and Compliance in 2024

Amid growing digital threats and DORA’s regulatory complexities, fintechs are seeking to find the needed balance to drive innovation in the industry. AI-driven cybersecurity solutions, blockchain implementation, and a collaborative industry approach are hailed as useful solutions to persevere through today’s challenging digital climate.  

July 17. In 2024, the fintech landscape is faced with considerable challenges — to pursue innovation, companies must deal with stringent regulatory demands and ever more sophisticated digital threats. Amid elaborate AI-driven attacks, the risk of deep fakes, and tight regulatory compliance laws, such as the Digital Operational Resilience Act (DORA), the difficulty of maintaining adequate cybersecurity practices is putting significant strain on the fintech sector. Experts advise strategic reassessments of crisis management plans, investments in next-gen cyberware, and high vigilance on the part of cybersecurity teams to persevere through the challenges.

Artificial intelligence: a new industry standard in cybersecurity

Advancements in artificial intelligence have come a long way, especially in fortifying cyber defense mechanisms and easing compliance procedures. By being able to analyze vast amounts of information in little time, this technology allows companies to greatly improve efficiency in otherwise labour-intensive tasks. The implementation of AI is expected to save financial institutions over $1 trillion by 2030 while cutting costs by 22%.

“Automation-based software excels at surveilling large amounts of data to preemptively identify and stop potential threats before major damage occurs. The same goes for efficiency in legal compliance — modern cybersecurity solutions can save businesses a lot of time when it comes to streamlining the needed data for regulatory reports,” comments Aurimas Bakas, Co-Founder and CXO at Cyber Upgrade.

However, there are qualitative nuances to be considered when it comes to implementing the most suitable software for one’s enterprise, warns Bakas: “It is important to understand that not all AI solutions are built equal. Many overpromise on their threat mitigation capabilities, which has become a fairly widespread issue. Simply put, no AI solution is a panacea yet, and much of the capabilities depend on the developing team’s continuous involvement in the software, as well as the enterprise being protected. Additionally, cyber threats evolve on a daily basis, so the database of said AI solutions has to be updated very diligently to stay effective — this depends upon the provider’s oversight quality,” he adds.

Blockchain technology for enhanced transaction security

Due to its immutable nature, blockchain technology is widely considered to be the next big leap in qualitative upgrades for financial institutions, opening up a new standard of convenience, cost savings, and transaction security. This technology, based on a decentralized mode of operation, records every transaction across multiple computers. Any recorded information is protected against alteration, as well as completely open for public inspection.

“Blockchain technology represents a huge step forward in elevating financial security standards. Not only is it a much more secure mode of operation compared to legacy methods, but it makes supply chain oversight simple and accessible, while also increasing efficiency by minimizing transaction fees. It is a win-win situation for fintech institutions and their clients,” says Bakas.

Cloud computing safety regulations

Outsourced cloud computing services have played a big role in enabling fintech companies to stay agile and scale their operations easily. However, with the implementation of DORA, the compliance demands on third-party providers are becoming a lot more strict, requiring elaborate contingency plans, incident management protocols, continious in-depth risk oversight, and more. This tightened policy has been implemented in part due to increased data breaches, misconfiguration risks, and identity management challenges related to cloud services.

“For adequate compliance and trustworthy consumer protection, cloud service providers must step up their game in terms of security protocols. At a basic level, fortification entails compliance with DORA’s third-party risk management and data security policies. Additionally, robust access controls, continuous monitoring, and encryption protocols should become top priorities going forward. The main idea here is that the CEO, CTO, or CISO must gain control and visibility over the organization’s cybersecurity and resilience,” advises Bakas.

General cybersecurity upkeep in 2024

Looking into the future of cybersecurity trends, Bakas recommends a cautious approach — ensuring basic best practices are upheld is vital for any company, but these still often get overlooked. “The mistakes we see companies make are mostly to do with inadequate patch management, poor data encryption, and lack of incident response plans. Also, too often the most rudimentary practices get ignored. Multi-factor authentication is an example of that, and it should become implemented as standard practice in every office — it is simple and can mitigate a lot of risk on its own,” says Bakas.

Given the precarity of the current digital climate, including elaborate ransomware, AI-driven attacks, and sophisticated phishing attempts, strict protocols for threat mitigation are recommended by Bakas: “The fintech sector must adopt a zero-trust security model, make sure to invest in continuous threat intelligence, and put effort into enhancing collaboration with industry partners to ensure a safer digital future.“


About Cyber Upgrade

Cyber Upgrade is a company dedicated to making high-level, cybersecurity solutions available to modern businesses, guided by a clear focus on providing proactive ICT compliance software that is affordable and adaptive to the specific needs of its clients. Developed to help gain control, maintain increased visibility and continuity over cyber measures, Cyber Upgrade’s software addresses crucial company compliance requirements for various frameworks such as ISO27001, NIS2, and DORA. Founded by a team of seasoned experts and entrepreneurs, the company’s vision revolves around empowering companies to protect themselves against modern cyber threats, while fostering a culture of cybersecurity awareness.

Bleiben Sie informiert!

  • Newsletter jeden 2. Dienstag im Monat
  • Inhalt: Webinare, Studien, Whitepaper
Dieses Feld dient zur Validierung und sollte nicht verändert werden.

Klicken Sie auf den unteren Button, um den Inhalt von Google reCAPTCHA zu laden.

Inhalt laden

Bleiben Sie informiert!

  • Newsletter jeden 2. Dienstag im Monat
  • Inhalt: Webinare, Studien, Whitepaper
Dieses Feld dient zur Validierung und sollte nicht verändert werden.

Klicken Sie auf den unteren Button, um den Inhalt von Google reCAPTCHA zu laden.

Inhalt laden