The 2007/2008 financial crisis resulted in many new regulations imposed upon the banking industry. Ten years later, most of these regulations have been fully or nearly fully enacted. Examples include the Dodd-Frank Wall Street Reform and Consumer Protection Act as well as the Credit Card Accountability Responsibility and Disclosure Act in the US. Basel III was an international regulatory framework also resulting from the crisis. It remains the only major international framework that has not yet been fully implemented. In Europe, the General Data Protection Regulation (GDPR) will be fully implemented later this spring.
For the last 10 years, banks have been investing in the tools necessary to comply with this slew of regulations. Given that most have now been fully implemented, combined with the fact that the current administration has proposed easing some of these regulations, it might seem like a natural time for banks to decrease their focus on rules and requirements. Banks, however, have more regulations likely looming on the horizon, and they would be ill-advised to rest on their laurels now.
Proactively Mitigate Risk
Banks should look ahead to investing in data protection and managing cybersecurity risks. A recent PricewaterhouseCoopers survey revealed that nearly half of banking executives did not have a comprehensive information security strategy or a security awareness training program for their employees. More than half did not have an incident response process in place. Cyber threats and fraud continue to plague the industry, and emerging technologies will continue to introduce new risks and threats.
By being proactive and setting up security strategies, banks won’t just get ahead of future regulations; they will be able to be part of and influence the conversation. The finance industry has been accused of being farther behind in technology than any other global industry. Now that technology players like Amazon and Google are moving onto financial turf, banks have no choice but to embrace technology or be at risk of becoming obsolete.
The Time Is Now
Consider 2018 the year to invest in data protection and manage cybersecurity risk. Are you lacking a comprehensive information security strategy? Now is the time to develop one and align your business strategy with risk management as well as regulatory compliance.
Learn more about how security and compliance will shape your business in the coming years in our whitepaper Security & Compliance Trends That Will Affect Your Biz in 2018 and Beyond. It shares the current outlook on security trends, the regulatory environment, and financial markets. In addition, you’ll get a source list for more information as well as a checklist to help you judge your company’s preparedness. Get the whitepaper now.
If you are interested in learning how Katabat can mitigate your cybersecurity risks and help you migrate to a digitally enabled, customer-centric business model, be sure to explore our many solutions.