As a financial institution, using cybersecurity as a differentiator can create positive impact on the overall customer experience

In the world of finance, a data breach or compromise could not only mean a loss of revenue and a hefty fine, but also a loss of customer trust. With the rate of breaches in the financial sector almost tripling over the past five years, ensuring total security and compliance is needed now more than ever.

Your customers want their personal information to be kept secure.  They want to know their bank, credit union, capital market and insurance firm is taking cybersecurity, data privacy and compliance seriously. If they don’t, they will utilize another institution that takes their security concerns seriously. Therefore, viewing cybersecurity as an opportunity or differentiator can help your organization gain market advantage and a competitive differentiator.

How do you view cybersecurity?

There are a few ways that organizations view cybersecurity:

Cost center: This is when organizations simply view security as a cost that hits their bottom line.

Compliance only: This is when organizations only rely on compliance standards to stay secure.

Technical solutions: These organizations see the importance of cybersecurity but cannot get pass the technical solutions.

Enabler: Enablers understand cybersecurity’s true value, are investing in multi-tiered programs, and are making security part of the company culture.

While all of these views have validity, utilizing them in tandem can and will create a stronger security posture that goes beyond the technology. It can build a company culture that will result in a holistic approach to security that achieves better privacy of company and customer information. Employees, and even customers, will be better equipped to address emerging threats and more knowledgeable of the impact of risks.

According to a recent study, the average cost of cyber crime in the financial sector has increased more than 40 percent over the past three years.

The benefit of viewing cybersecurity as a differentiator

By continually improving cybersecurity and going beyond industry standards, financial institutions can reduce costly data breaches and security risks. Those organizations that prioritize the privacy of customer data will make a greater positive impact on customers, creating more trust and market advantage.

Cybersecurity is no longer an afterthought in today’s digital world. It has to be viewed as a necessity or operating cost, like headcount or culture, to truly succeed. While many still struggle to view cybersecurity this way, a strategic approach can make the difference with your customers. The financial organizations that view security as an afterthought will continue to face customer loss and backlash.

Cybersecurity effectiveness can be seen as a market differentiator for financial institutions if properly maintained, controlled and used as a company culture. Multiple lines of defense need to be adopted, including 24/7/365 incident response, detective tactics and preventative solutions, to ensure total data security and compliance. Magna5 offers a full-suite of managed security solutions that are supported by a 24/7/365 incident response team that will ensure customer data is protected against malware, phishing campaigns, ransomware and much more. Need help with cybersecurity posture? Contact us today. 

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