Innovation-Driven Cyber-Risk to Customer Data in Financial Services

As businesses rely more on technology and amass larger stores of data, protecting customer information has become increasingly important to maintaining a secure and trusted financial services system. However, technology-driven innovations are expanding the amount of customer data at risk as well as enabling more sophisticated cyberattacks.

The financial services system faces challenges, both internal and external, in managing innovation-driven cyber-risk. Internally, challenges around technology and expertise; externally, challenges around coordination with regulators and across the industry.

In this whitepaper, Oliver Wyman and the World Economic Forum have identified 19 solutions to address innovation-driven cyber risk to customer data. These solutions are based on extensive research, interviews with more than 30 subject matter experts, and the project Steering Committee and Working Group meetings. Two of these solutions have also been prioritized for further action by the World Economic Forum: Cyber-risk measurement and a cybersecurity assessment for fintechs. The 17 additional solutions are strongly recommended for consideration by actors across the financial services system.

Addressing cyber-risk – and implementing the solutions described in this whitepaper – will require cooperation both within and across the public and private sectors. The framework illustrated here can also be used to develop further solutions as technology and innovation continue to transform the nature of cyber-risk.