Be Compliant: Check and Manage
Meeting the requirements of regulators and authorities such as AFM and DNB keeps the financial sector quite occupied. The extensive program of necessary measures in the areas of security and management, should limit the risks of increasing cybercrime, and protect businesses and consumers. Not only must data be managed securely, but access to data must also be protected. All of this becomes an increasingly significant challenge as financial ecosystems grow larger and more complex with Fintech and Insurtech services.
From banks to insurers, every service provider is exploring new service opportunities in financial digital ecosystems and public cloud services. Think of companies developing technologies for payments, security, and data processing. These continuously bring new challenges to the forefront as more organizations gain access to sensitive data shared between financial service providers.
Threat of Cybercrime
The financial sector is known as an attractive target for cybercriminals due to the vast amount of sensitive data and valuable financial transactions. Organizations must be aware of this and, for example, proactively implement Identity & Access Management (IAM) solutions in their IT environment. These solutions play a crucial role in protecting this information by managing user identities, access rights, and minimizing the chances of unauthorized access. IAM solutions ensure that financial institutions comply with legal requirements for data security and privacy, such as GDPR.
Many laws, such as the Anti-Money Laundering and Countering the Financing of Terrorism Act (WWFT), require organizations to maintain audit trails and report on access activities. Log management systems track user activities, such as login attempts, access requests, and changes in user rights. These logs can be used for audits, compliance checks, and investigations into security incidents.
More Data Traffic via APIs
Another example concerns the use of APIs. With the rise of Fintech, more services become available, but these services require access to user data. Financial service providers are often required to provide transparency about which APIs are used, with whom they are shared, and how they are managed. There may also be reporting requirements to regulatory authorities. Monitoring and control are necessary to detect and prevent suspicious or unauthorized activities and to ensure the availability of services.
Outsourcing Control Mechanisms
There is an abundance of cybersecurity solutions that offer protection. To be compliant and remain so, a multitude of advanced monitoring and control mechanisms are required, which must be implemented and managed correctly.
Financial service providers often face challenges here – not only are IT environments highly complex, and regulatory requirements are severe, but there is also a shortage of IT and security specialists. In-house, specialized knowledge, experience, and resources are often lacking to effectively implement and manage a secure environment. This includes monitoring systems, deflecting digital attacks, managing user accounts and access rights, applying updates and patches, and resolving any issues that arise. With the resources and expertise of a specialized service provider, organizations can focus on their primary goals, making compliance management and audit execution much simpler.
Sign up for the Solvinity Newsletter
Receive the latest news, blogs, articles and events.
Subscribe to our newsletter.
Discover how landing zones help organisations streamline their implementation and maintenance processes.
A digital work environment offers many technical possibilities, but do end users really want these?