More Than Two Thirds Of Financial Services Organisations Say Network Security Threats Have Increased In The Last 18 Months, According To New Daisy Research

More than two-thirds (72%) of financial services organisations have seen an uptick in network security threats over the last 18 months, according to new research from Daisy Corporate Services (Daisy). According to 60% of organisations in the banking and financial services sector, cyber security threats are the biggest networking challenge they currently face, with almost nine in ten (89%) stating that remote and hybrid working is the biggest contributor to heightened threat levels.

Daisy’s ‘State of Networking Report 2024’, surveying 250 IT decision makers in the UK (25 of which came from banking and financial services), highlights that growing network complexity is making it more difficult and costly for financial services organisations to secure and manage their networks. Over two-thirds (68%) say their current network is made up from a patchwork of different vendor technologies, and 94% say this has created network management issues. Unsurprisingly, 92% of financial services organisations state that simplifying their network infrastructure is now a priority.

“At a time when the network perimeter is becoming increasingly virtual and a growing number of business processes and applications are online, it has never been so important to be able to maintain and manage a secure boundary between your network and the outside world,” commented Joel Cunningham, Head of Connect at Daisy Corporate Services. “Simply hoping your remote employees will enable a VPN outside the office doesn’t constitute a robust network security strategy.”

Legacy networks continue to hold financial services organisations back

Increased pressure is being put on many networks due to the number of cloud applications being used in the workplace – according to more than three-quarters (76%) of those surveyed. What’s more, almost half of financial services organisations (48%) said ensuring cloud application performance was one of the main networking challenges they face. This is especially true in office environments where hot desking and large meeting rooms are putting Wi-Fi networks under strain.

Yet even seemingly simple upgrades – such as moving to the newer WiFi 6 standard is a challenge for many financial services organisations. Over half (53%) believe the cost of upgrading devices is delaying their move to WiFi 6. In fact, only 24% of those surveyed currently have WiFi 6 deployed across most of their organisation.

Despite being aware that they need to simplify and update their network infrastructure, just 37% of IT budgets is currently still spent on maintaining legacy network hardware. This makes it harder for financial services organisations to implement modernisation and improvement programs, resulting in a vicious circle where legacy systems need to be maintained, as there isn’t an alternative.

Sustainability is harder to achieve when it comes to older tech

Legacy technology is also a significant factor in whether financial services organisations can meet their sustainability goals; with legacy network hardware accounting for over a third (38%) of organisations’ overall IT power consumption. More positively, the majority of organisations (92%) believe modernising their network infrastructure will contribute to them meeting ongoing sustainability targets. However, being able to dispose of legacy equipment in an environmentally friendly way remains a challenge for (76%) of financial services organisations.

“Legacy networking equipment remains a huge cost centre, preventing financial service providers from reaching their sustainability goals and causing significant overspend across maintenance and power consumption,” commented Joel Cunningham, Head of Connect at Daisy Corporate Services. “The traditional approaches to managing wide area networks (WANs) often fall short in addressing these complex issues. However, Software-Defined Wide Area Networking (SD-WAN) has emerged and evolved into a transformative solution. This powerful technology not only solves the problem of optimising network performance but enhances security measures, giving organisations an edge in the ever-evolving threat landscape.”

To download the ‘State of Networking Report 2024’ please click here.