Softcat reveals cyber security is top IT priority for the financial sector in 2024

A new report by leading providers of IT infrastructure, Softcat, offers a look into the technologies the financial sector is prioritising over the next 12 months.

The findings form part of a report based on the views of more than 4,000 customers from 2,900 organisations in the UK and Ireland, across 27 industries in both the public and private sectors.

The report, which is produced annually, reveals the financial sector is, for the second year running, prioritising Cyber Security above all technology areas, with 55 percent of respondents saying it is their focus over the next 12 months.

Digitalisation is taking over the financial sector, evidenced this year by the increasing number of bank branches closing, replaced by digital alternatives which store information on cloud-based platforms and data centres.

Digital capabilities safeguard data but also leave it susceptible to sophisticated hackers taking advantage of cyber security weaknesses.

The Information Commissioners Office (ICO) revealed that the largest percentage increase in cyber incidents was in the finance, insurance and credit sectors, showing an increase of 266 percent in 2023. The fundamental importance of increased investment into cyber security with the likes of zero-trust security and AI threat hunting is apparent.

Devices and End User Computing was the second most important investment priority for the finance sector, with over a third (36%) of respondents planning to invest in this area in 2024. Secure devices and appropriate technology not only prevent cyber breaches but also boost workforce productivity and increase job satisfaction, helping retain valuable staff.

The financial sector reportedly has the fourth-highest average turnover rate of all sectors in the UK (28.2%) and with associated high costs, investing in this area is key.

Furthermore, with continued higher demand for hybrid and remote working, investment in collaboration and communication technology supports and improves efficiency and productivity regardless of location. Rising generative AI will feed into this, enhancing workforce capabilities through productivity apps, but only if digital workspaces are updated and AI-ready.

This is also reflective of the third investment priority for 2024 – Data (31%).

Investment in appropriate and updated technologies and devices fosters efficient data management, including data strategy, governance, analytics and security.

At the heart of this, lies the numerous applications and data silos that must be integrated to achieve desired business outcomes and improve employee and customer experiences. Investing in a data backbone strategy will help to identify and mitigate risks, troubleshoot problems quickly and allow for better managerial decision-making.

Finally, with e-waste reportedly the fastest-growing solid waste stream in the world, the tech industry at large is aware of the impact it has on the environment. With this in mind, the financial sector is prioritising tech sustainability in 2024, with 64 percent of respondents citing it as a key initiative for the year ahead.

Meanwhile, the financial sector has highlighted the top business challenges they’re expecting over the next 12 months.

Half of all respondents in this sector cited People-related challenges above all others, closely followed by Commercial Risk (40%) and Technology Experience (33%).

Again, digital transformation and the rapid emergence of generative AI across the sector reflect the relevance of these top three challenges. The heightened dependence of customers, employees and businesses on digital technologies will continue to grow and so will commercial risk.

It is no surprise that commercial risk takes second place as a top challenge for the industry when, in 2022 the typical cost of cyber-attacks stood at $5.97 million globally. This is the highest cost of cybercrime for all sectors, with attackers seeking access to confidential transactional data, and user account information to steal money.

Training of customers and employees alike is imperative in mitigating risks associated with a lack of experience in using technology which renders users more exposed to risk.

Richard Wyn Griffith, Chief Commercial Officer, commented on the findings:

“As we continue to navigate the ever-changing landscape of technology, it is essential that we remain vigilant and adaptable. The past year has seen global unrest, but it has also presented us with countless technological opportunities for growth and innovation. By taking a measured and strategic approach, we can effectively manage the risks associated with emerging technology, while also seizing the opportunities that it presents. We must remain proactive in our efforts to safeguard against cyber threats, integrate AI into our operations, and build digital resilience.

“Only by embracing change and remaining steadfast in our commitment to progress can we hope to thrive in this new age of digital transformation. I look forward to continuing to work with our customers towards a brighter future!”

The full findings from the 2023 Softcat Business Tech Priorities Report, including expert analysis, can be downloaded here.