The future of data security and governance in financial services
As cyber threats escalate and regulations become stricter, the challenge of securing sensitive data in financial services has never been greater. We gathered insights from over 250 UK IT leaders to understand how they're tackling this critical issue.
Data security in financial services
Data security has always been a critical concern for the financial services sector. However, in the digital age, the stakes are higher than ever.
With the rapid proliferation of sensitive data and increasingly sophisticated cyberattacks, organisations are under mounting pressure to safeguard information while adhering to stringent regulatory frameworks.
The consequences of failure - ranging from significant breaches and regulatory fines to irreparable damage to customer trust - are severe. At the same time, organisations recognise the untapped potential of their data as a driver of growth and innovation.
Yet, strict compliance requirements and heightened data sensitivity often create a paradox: businesses must balance the need to protect their data with the desire to unlock its value.
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Fully Homomorphic Encryption (FHE)
Fully Homomorphic Encryption (FHE) is an advanced quantum-resilient cryptography method that allows encrypted data to be processed without ever needing to be decrypted.
This capability makes FHE uniquely suited to solving data security challenges, particularly for organisations in the financial sector that handle highly sensitive data. By allowing secure computation of sensitive data, FHE can enable financial institutions to unlock the full value of their information without compromising security.
While often referred to as the most valuable global asset, the actual value of data is only realised when it is used to make informed decisions – be it improving operational efficiency, developing products or understanding societal trends.
Organisations increasingly seek ways to optimise this value through new technologies such as AI, ML and data collaboration. However, valuable data often remains siloed within organisations and the most valuable data is usually the most sensitive.
Today, most encryption methods protect data only during storage or transit. To process data, it typically needs to be decrypted first, exposing it to risks. This presents a dilemma – protecting data and limiting its use or utilising the data and increasing exposure to breaches.
FHE solves this dilemma by enabling secure, encrypted data processing, allowing financial organisations to maximise the value of their data while ensuring its security.
The current state of data security in financial services
We recently surveyed over 250 key IT decision-makers from across financial services in the UK to examine the current state of data security in the financial services sector, the barriers organisations face, and the technologies and strategies they are adopting to address these challenges.
