How To Mitigate Five IT Problems Affecting The Financial Industry
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The financial services industry is no stranger to risks and challenges. With the rise of fintech in a new world of digitization, financial services organizations have been suffering from five major IT challenges in the past several years that include:
- How to minimize security breaches
- Reducing cyber theft
- Using technology to improve overall performance
- Improving compliance to regulatory mandates
- How to use technology to provide a competitive advantage
Technology has always played a key role in the financial sector. Notwithstanding tough competition, recessions, and new regulations, constantly changing technology for the financial industry has brought new challenges along with opportunities, exposing organizations to cyberattacks and highimpact security risks. As an example, the recent cyber theft from Tesco Bank illustrates that traditional approaches to security are not working or that companies are not taking the threat seriously enough. In this case, Tesco Bank halted online banking after 40,000 current accounts were compromised and half of those were hit by fraudulent transactions by hackers during a single weekend. Although the bank promised to cover all losses, shares in Tesco dipped 1% amid predictions that the brand could be damaged by the security breach, according to the BBC.