The rapid, widespread embrace of remote work policies driven by the COVID-19 pandemic has placed cybersecurity as a focal point of business success. Cybercriminals have, in turn, adapted accordingly and their crooked campaigns constitute a major threat for individuals, companies, and entire governments in the age of digitalization. Of all affected sectors, banking has perhaps the most at stake -- financial institutions are beholden to protecting not only their actual business, but the money and data of an entire customer base. With this in mind, the future of banking security is predicated on banks understanding and implementing the most cybersecurity-hygienic practices.
Transparency of finances is of utmost importance in the modern business world. The advent of the open banking methodology involves an unobstructed communication line of financial information between banks and third-party service providers. APIs are the key to achieving this improved clarity. The free exchange of open-source technology is a definite boon to cybersecurity advocates and allows room for some pick-and-choose creativity in adapting security models. The dangers of extended exposure for data, however, are readily apparent. The preparedness of existing safety protocols will determine the scope of success for the practice.
The Saudi Central Bank, for example, is gearing up for the introduction of an open banking “initiative” meant to set realistic parameters and expectations for a robust adoption in the financial technology sector. These careful considerations will set the stage for a projected launch of open banking operations in the first half of next year. Other aspirants on the open banking front must stay apprised of extensive and ever-evolving data protection and customer privacy requirements, while keeping a close eye on overall security regulation.
Another approach, known as Cyber in the Audit, focuses on providing a realistic assessment of security strength in practice. The risk-assessment factor of CitA and its stress tests helps banks forecast the effects of regulatory factors on information sharing. Beyond generating pragmatic status reports, the CitA philosophy shores up IT systems to the point of covering recovery and response in the event of a compromise.
A main takeaway of these banking policy trends is the heightened appraisal of consumer data and its crucial role in creating further capital for the industry. Enhancing data handling procedure and using said data for further development of customer-friendly innovations fosters value. A proactive attitude towards protecting this critical asset will be essential to survival in a time of boundless cybercrime. Ambitious and optimistic policies such as open banking and CitA, when paired with well-planned security protocols and regulatory compliance, represent a brighter, safer path forward for modern banking.
