Cybersecurity Fears are a Barrier to Fintech Revolution

Cybersecurity Fears are a Barrier to Fintech Revolution

Three quarters of large global financial services companies have identified the importance of fintech firms, but 71% see cybersecurity as an associated risk.

Research by global law firm Simmons & Simmons also found that 71% of large financial services firms believe better visibility of cybersecurity controls within fintech firms would improve partnering prospects.

Head of tech, media and telecoms at Simmons & Simmons, Alex Brown, said: “There is no doubt that established financial institutions need to look at new technology and partnering solutions if they are to escape the chains of their legacy IT systems and adopt innovative technology.

“At the same time, though, not only are they encumbered by their legacy systems, but the increasing weight of data protection and financial regulation makes data sharing with third parties or adopting innovative technology steadily more difficult.”

Brown said there is pressure to share data with partners to help provide better service for customers.

He added:  “Those that don’t find ways to innovate will be left behind,”

The research also found that 31% of banks and asset managers expect to acquire a fintech firm in the next 18 months. Of those companies that do not plan to acquire a fintech company in that period, 45% said it was down to the regulatory risks being too high.

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