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Why are BFSI Organizations Adopting Security Solutions?

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Devanshu Shrivastava
Why are BFSI Organizations Adopting Security Solutions?

With rapid technological advancements such as the digitization of financial operations and the use of online banking, the prevalence of data breaches is surging. These breaches are causing massive losses to the organizations operating in the industry. For instance, the U.S. witnessed the highest prevalence of data breaches in 2019.

Furthermore, these breaches caused losses of $8.19 million to companies operating in the country. Due to this reason, banks and other financial organizations are adopting security solutions, which is, in turn, predicted to fuel the market at a CAGR of 16.9% during 2020–2030 (forecast period). According to the estimates of the market research company, P&S Intelligence, the market revenue will rise from $31.3 billion in 2019 to $175.1 billion by 2030.

Insurance companies and banks are the biggest end users of security solutions. Between them, the adoption of these solutions was found to be higher in banks in 2019. Furthermore, banks will also use these solutions extensively in the coming years, owing to the growing incidence of cyberattacks and the increasing demand for complying with the strict regulations being implemented for the banking industry. 

Geographically, the BFSI security market is expected to exhibit the fastest growth in the Asia-Pacific (APAC) region in the upcoming years. This is attributed to the adoption of cloud-based technologies, increasing number of banks, rising incidence of cyberattacks, and implementation of cybersecurity mandates in various regional countries. For instance, as per the China Banking Regulatory Commission Article 40, in China, all commercial banks are required to adopt appropriate warning and risk monitoring systems to mitigate business risks.

Hence, it can be safely said that banks and other financial institutions all over the world will use security solutions extensively in the forthcoming years, primarily because of the growing incidence of cyberattacks, on account of the increasing adoption of cloud-based solutions by them. 

 

 

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Devanshu Shrivastava
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