The modern financial services industry is in the midst of a wave of technological innovation–from retail banks providing 24/7 service through smartphone apps, to fintech startups revolutionizing payments, to securities firms executing transactions with ever greater speed and precision. At the same time, as more of the industrys functions shift to rely on new technology, the threat of data breaches and other cybercrimes increases. For all businesses, but financial firms in particular, the risks often appear through methods of communication. However, if new technology raises cyber threats, it also provides increased measures of defense, and its here where automation can make the biggest difference.

The evolving landscape of cyber risk

Financial firms are under continuous pressure to innovate in order to stay ahead of fierce competition. Cloud computing, distributed ledger technology (DLT), artificial intelligence (AI) and robotics are just a few examples of technological advances that are transforming financial services, improving efficiency and driving growth.

Evidence of these heightened risks can be found in the latest DTCC Systemic Risk Barometer Survey, where 37% of respondents cited cyber risk as the single biggest threat to the global financial system. Companies in the financial sector are expected to spend $43 billion annually on cybersecurity by 2023 (source: Global Cybersecurity in Financial Services Market).

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