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Verint 2023 Predictions: The Rise of Cloud-based Security in Financial Institutions

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Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

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 

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.

Published Wednesday, November 09, 2022 7:30 AM by David Marshall
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