The future of the banking industry will be shaped by a range of disruptive themes, with cybersecurity being one of the themes that will have a significant impact on banking companies. 

Cybersecurity in banking has become more important than ever as the rapid evolution of digital banking has resulted in customers finding it more convenient to manage their finances through online channels, exposing banks and financial institutions to increased levels of cyber threats. The impact of cyberattacks on financial institutions can be catastrophic, so innovation will be needed to counter the continuously evolving cyberthreat landscape in the retail banking sector, which includes both channel shifts driven by the pandemic and fallout from the Ukraine-Russia conflict. To fend off cybercriminals, banking and payment providers are looking to utilise newer and more advanced security infrastructure and services. Banking incumbents and fintech disruptors must maintain a robust cybersecurity strategy.  

Banks are unleashing the power of digital technologies to predict and prevent cyberattacks before they happen. Cybersecurity technologies will help banks shore up their reputation as trusted and secure providers as they digitise amid increased openness. According to GlobalData estimates, the global cybersecurity industry in the retail banking sector will grow from $7.9bn in 2020 to $11.6bn in 2025 at a compound annual growth rate (CAGR) of 8.1%. 

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However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.  

According to GlobalData’s thematic research report, Cybersecurity in Banking, leading cybersecurity adopters in banking include: HSBC, CaixaBank, Goldman Sachs, Santander, DBS Bank and Deutsche Bank. 

Insight from a top ranked company 

HSBC 

HSBC has recently made significant investments to improve resilience and cybersecurity capabilities, thus enhancing its ability to detect, deter, and prevent cybercrimes. One of the tools developed uses data to look for unusual ties between its customers and companies to avoid further compliance failures.  

Using biometrics technology, HSBC has streamlined the login process through Apple’s Touch ID and HSBC Voice ID across its 18 markets, enhancing security. In 2017, HSBC Ventures invested $40m in Menlo Security—a cybersecurity company that helps businesses detect and respond to threats—to add Menlo’s capabilities and safeguard its own business from cyber threats. In 2021, it was announced that HSBC had selected Mailock, Beyond Encryption’s email security system, to assist HSBC in building enhanced digital relationships with their customers. 

To further understand the key themes and technologies disrupting the banking industry, access GlobalData’s latest thematic research report on Cybersecurity in Banking

  • DBS
  • Ant Group
  • Westpac
  • ING Groep
  • Nordea
  • Apple
  • KEB Hana Bank
  • ICBC
  • RBC
  • Commonwealth Bank of Australia
  • Swedbank
  • UOB
  • US Bancorp
  • BNP Paribas
  • Sberbank
  • PNC
  • Bank of Montreal
  • NAB
  • State Bank of India
  • JPMorgan Chase
  • TD Bank
  • Capital One
  • Axis Bank
  • ABN AMRO
  • Tencent
  • Citigroup
  • KBC
  • Societe Generale
  • Monzo
  • Wells Fargo

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Thematic Scorecard ranks companies within a sector based on their overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of their future earnings and relative position within key strategic areas.