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The Rise of Cloud-based Security in Financial Institutions
By Tariq Mahmood , EMEA Sales Director, Verint Systems FSS
Although
cloud-based security solutions are becoming increasingly common in major
industries, one sector, in particular, can be somewhat resistant to the recent
increase in cloud: banking and finance. Traditionally, larger banks in the
industry tend to rely on on-premises and internal security networks rather than
managing their resources through the cloud - but this is beginning to change. Over the past few years, banks and other industry
financial institutions have started shifting towards a cloud-centric security
approach. The number of institutions moving some of their security operations
to the cloud has increased steadily over time - despite the apparent resistance
to the shift compared to other industries.
Cloud Security is the Way Forward
For
institutions that have already invested in their in-house security network, it
can be challenging to recognize the potential presented by cloud security
solutions. After all, once an organization finds a familiar and seemingly
effective method of operating, it is understandable to be apprehensive towards
newer, unfamiliar technologies introduced to the industry. However, completely
disregarding the advantages they bring to the table is an unfortunate way to
stay stagnant in the industry and even cause the organization to be vulnerable
to attacks.
According
to Mordor Intelligence, cloud security is expected to see a 33 percent increase
in popularity in the banking industry by 2026, primarily because blockchain
solutions have become increasingly prevalent in the industry due to their high
level of security during the process of exchanging sensitive data with external
systems. Physical security is essential, but cybersecurity threats can cause
irreparable damage to businesses in the banking sector. Therefore, a solution
that can effectively combat both threats is needed for every institution with a
physical and online presence.
The Benefits of the Cloud
Several of the of the
biggest threats faced in the banking sector are cyberattacks on customer
accounts, "hook and chain" ATM attacks, and theft. Additionally, fraud,
phishing, scams, and data leaks can all harm a financial institution's health.
With this being the case there is only so much a total on-premises security
network can do to combat these attacks. However, with a security solution based
in the cloud like VMS and Verint's VVX, financial institutions stand a better
chance of receiving comprehensive surveillance protection, better analytics for
reporting, information sharing and investigation, protected data, and more.
Banks and other financial institutions in the U.S. have begun exploring the
cloud as an option to protect themselves against these massive threats that
impact the industry through both physical and cyber-attacks.
Cloud-based
or hosted security also adds the benefit of lower cost and greater scalability.
For organizations seeking to upgrade their infrastructure, it is important to
seek out solutions that provide both cloud and on-premises solution
integrations. Compared to solely on-premises
solutions, cloud security is considered less costly and more affordable for
smaller businesses in most industries, as the nature of the cloud allows for
greater scalability and flexibility based on the needs and size of the company
in question. In conclusion, while an expensive, high-tech security solution
kept solely on-premises has been the norm since its introduction to the market,
institutions that are seeking out cloud-based solutions for physical and
cybersecurity are adapting, receiving greater protection, and starting to
thrive in this new digital environment.
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ABOUT THE
AUTHOR
Tariq Mahmood is the
EMEA Sales Director at Verint Systems' Fraud and Security Solutions branch. He
is a proven executive leader with years of experience in the banking and
security industries, vast knowledge, and experience in consultative solution
sales, business operations, and general business management. Tariq is known for
building high-performing teams and delivering successful transformational
growth for his clients.