5 Best Practices for Enforcing Compliance in the Data-driven World of Finance

The data driven world of finance

How financial firms handle, and store finances and data are a far cry from what it used to be about a decade back. For example, in today’s competitive world banks need to be more data-driven than ever before. This is critical to acquire more customers and deliver the best experiences.

“Data-driven organizations are 23 times more likely to acquire customers, six times as likely to retain those customers, and 19 times as likely to be profitable as a result.”

Becoming nimble, accelerating revenues, and improving customer experiences have been the primary drivers for financial firms to implement digital transformation projects. But increased adoption of cloud, IoT, mobile applications etc. has led to an exponential growth of data. Financial firms today sit on a mountain of data that’s not only constantly growing and but is also of the highest value. It’s therefore not surprising why financial data is the most susceptible to cyberattacks.

Financial sector: The favorite playground of a hacker

Every cybercriminal out there seems to be picking on financial firms. As per the recent Verizon’s 2020 Data Breach Investigations Report, the financial sector continues to be a favorite playground for hackers and cybercriminals. The data breaches in this sector are largely perpetrated by

Of the 3,950 confirmed breaches reported, nearly 448 breaches are within the financial sector.

Another research report by BAE Systems Applied Intelligence, the cyber and intelligence arm of BAE Systems points out that 74% of financial institutions experienced significant rise in cybersecurity threats linked to COVID-19.

Quoting from the report, “A quarter of consumers also believe their Financial Institution (FIs) could do a lot more to protect them from cybercrime and over half now think it’s the job of FIs to do so — more so than the government, the police or themselves.”

With increasing incidents of data breaches being reported, the financial industry comes under more intensive scrutiny from government regulators and authorities concerned. They are subject to regulations that can drastically vary between countries and markets. For example: there are regulations like PCI DSS for credit card data, GDPR for EU data across the globe, GLBA, SOX, and other different laws across the world. As these organizations scale, it is critical to ensure that the sensitive data is protected and meets these compliance requirements.

Snapshot of some important compliance regulations for financial services

According to Gartner, “Privacy and data breaches continue to be widespread due to lack of data security governance and operational frameworks for encryption.”

Best practices for maintaining compliance and data security for financial organizations

Encryption key management or cryptography is often considered the most important security control to meet compliance standards. Here are the top five cryptographic practices that can help your financial firm comply with these regulations.

  1. Adopt a data security approach that is cloud-scale and pervasive in nature. Today, cryptography is often underutilized, misconfigured, and siloed between different environments and groups within an organization. To build digital trust, accelerate digital transformation, and minimize the risk of data breaches, it is critical that businesses use an agile encryption approach that standardizes and centralizes cryptographic operations so that encryption becomes pervasive throughout all applications, infrastructure, and digital business.

Here’s a webinar that narrates the digital transformation journey of a world leading banking organization and the measures that were taken to navigate the complex world of compliance and data security.

Webinar: Modernizing data security for multicloud

And if your financial services firm is interested in implementing these practices to achieve compliance then reach out to us at sales@fortanix.com

Originally published at https://www.fortanix.com.