By FINTECH Books Contributor, Clyve Lo-A-Njoe
Maintaining clients’ trust in digital wealth management equals having strong cyber security. Wealth management firms must recognise the importance of cyber security on their brand and reputation. Forward-thinking business leaders have a keen understanding on how the digital threat landscape has become more sophisticated and will affect their business operations.
A cyber resilience strategy allows the firm to be open and connected, because cyber security measures have been put in place that support business outcomes. It combines the strengths of information security, business continuity and organisational resilience.
The challenge for wealth management firms is to proactively deal with cyber security risks in a fast changing environment, while at the same time preventing a potential impedance of business innovation.
In this context cyber security has to be agile and facilitate a wealth management firm to move beyond the traditional “waterfall” approach. How will a cyber resilience strategy be structured and use different methodologies that wealth management firms can implement?
Cyber security can go hand in hand with better consumer experiences by using new technologies e.g. biometrics, behavioural analytics and machine learning, that can be used to mitigate cyber risks without creating security fatigue.
Successful wealth management companies are able to take away cyber security risks from an end user. Moreover, in case a cyber breach happens they know how to respond in a proper and calm manner by having a incident response plan that is actionable.