Major Banking Institution and other related financial firms are projecting and allocating higher budget to Fraud Prevention and cybersecurity systems to ward off cybercriminals. It is estimated to keep climbing in 2021 as companies establish a more secure digital financial workspace which is being highlighted during the current pandemic.
Cybersecurity is at the top of the list of the expected increase in the budget based on the survey of technology spending organized by Deloitte & Touche, of which 64% of financial industry executives around the globe have forecasted the budget increase allocation.
For at least the previous 4 years – Banks, Insurance, Broker and other financial institutions have stepped up on boosting and spending more on cybersecurity systems as the majority of the services they offer move towards online transactions while the number of cyberattack incidents escalates. This year, an estimated 15% rise was spent on cybersecurity systems equating to almost $1 billion for each one of the largest banks in the US. Undoubtedly the pandemic contributed on the increase, driving institutions to reinforce their cyber defenses as employees and staffs establish the work from the home arrangement and as more clients and customers adapt to doing transactions online in availing products and services.
We are indeed still amid a monumental transformation in financial services as services adapt to digitalization and the majority of processes moving to the cloud that enable staffs to perform work remotely. The spike on spending is expected to stop when the transformation is complete as it will become an essential part of operational expense.
Cloud computing and storage services were second-most spending in the survey, with 54% of respondents projecting their budget allocation on the cloud will increase this 2021. Majority of the executives also projected a rise in expenditure on data privacy. Deloitte & Touche carried out the survey last July and August where respondents of about 800 senior executives participated.