Will Proactive Cybersecurity Give Banks a Competitive Edge?
The Middle East’s financial sector is becoming a prime target for increasingly sophisticated cyberattacks, and this is happening for several reasons. First, there’s the rise of mobile financial services, online transactions, and new technologies like AI and cloud computing. These innovations have expanded the possible ways attackers can break into systems. According to the World Economic Forum’s Global Risks Report, cybersecurity ranks as one of the top five global threats over the next two years, with banking systems being especially vulnerable.
Cybersecurity professionals in the financial sector are feeling the heat. Not only are they dealing with more sophisticated threats, but new data protection laws are also coming into play. The UAE Cybersecurity Council, for example, is developing three new policies—on cloud computing and data security, Internet of Things (IoT) security, and cybersecurity operations centres. These policies require financial institutions to protect customer data rigorously. But here’s the challenge: the sophistication of attacks, often driven by AI, is evolving faster than the regulations themselves. By the time these regulations are fully in place, the landscape might have already shifted.
This creates enormous pressure on financial institutions. They have to figure out how to secure their operations and protect customer data while also keeping up with emerging threats and maintaining consumer trust.
The Role of Regulations in Cybersecurity
Regulations certainly play a big role in shaping cybersecurity strategies in the financial sector. They tend to focus on risk management, which is crucial. But there’s a downside: regulations often lag behind the pace at which threats evolve. While attackers are getting faster and more sophisticated, these rules take time to develop and implement.
In the meantime, traditional corporate security teams struggle to keep up. For instance, it typically takes an organisation 4-6 days to respond to and fix a breach. But attackers can now compromise systems and steal data much faster than that.
With the cost of the average data breach hovering around US$4.45 million, financial institutions can’t afford to wait for regulations alone to guide them. They need to take a proactive approach, investing in advanced technologies that allow them to detect and neutralise threats quickly, rather than just responding to regulatory requirements.
In short, regulations should be seen as a basic foundation, but financial institutions need to go beyond that and adopt proactive, threat-based cybersecurity strategies.
AI: Both a Threat and a Solution
AI is reshaping how financial services operate, especially in areas like customer experience and operational efficiency. But it’s also introducing new security risks. Cybercriminals are using AI for everything from reconnaissance to social engineering and even developing malicious code. These AI-driven attacks are faster and harder to combat with traditional cybersecurity methods.
However, AI can also be a powerful tool for defenders. It’s a bit of a double-edged sword—it can help both cybercriminals and cybersecurity teams. The key is to consolidate security systems and shift towards AI-driven solutions that can detect and respond to threats in real-time.
By using AI in this way, financial institutions can protect their data and be more agile in responding to evolving threats and incoming regulations.
Communicating Cybersecurity Needs
To put the right cybersecurity solutions in place, security teams need buy-in from leadership. Often, C-level executives underestimate the cyber risks their organisations face. That’s why it’s critical for CISOs and CTOs to effectively communicate the seriousness of these risks and the need for investment in cybersecurity.
Maintaining customer trust is crucial for any business handling sensitive data, and financial services are no exception. Investing in cybersecurity reduces the risk of cyberattacks, which can have huge financial implications. Plus, a strong security posture might even help companies secure better terms on their cyber insurance policies.
In today’s digital financial landscape, robust cybersecurity measures do more than just protect against breaches. They safeguard a company’s reputation, maintain customer trust, and ensure smooth operations. As digital transformation continues to accelerate, financial institutions need to integrate security into every part of their operations. Doing so not only reduces risk but also turns cybersecurity investments—particularly in AI—into a competitive advantage.
