Top trends in the financial sector: Trick or Treat?

The financial industry is rapidly advancing into a new digital era—more dynamic, intelligent, and interconnected than ever before. Every innovation promises opportunity and every opportunity opens a door for cyber risk to slip through. 

For banks, insurers, and financial platforms, digital transformation is not merely a strategic advantage but a necessity for achieving substantial growth, delivering superior customer experiences, and enhancing operational agility. Nonetheless, this evolution also transforms the landscape into a complex battleground where cyber threats evolve at a pace matching technological progress. A single misstep can lead to severe consequences.

According to the Kaspersky IT Security Economics 2024 report, banking, financial and insurance (BFSI) organizations spend an average of $1.2 million a year on cybersecurity. While this figure may seem substantial, it pales in comparison to the cost of a major security incident—approximately $3.2 million, which is 2.7 times the annual cybersecurity budget. This underscores the reality that digitalization is unavoidable, and inadequate security measures directly increase the risk of becoming the next high-profile breach.

To succeed—and to sustain long-term growth—financial institutions must fundamentally rethink their approach to security, moving beyond mere adoption toward a comprehensive, strategic security posture. 

The digital trends reshaping finance — and the risks they hide 

The financial sector is advancing toward a borderless, highly interconnected future, driven by APIs, cloud platforms, and AI-powered intelligence. The promise? Rapid operational processes, highly personalized customer experiences, and limitless scalability. The risk? A digital environment that hackers perceive as a buffet of vulnerabilities

Below are five trends rewriting the rules— each carrying its own lethal shadow: 

Open Banking APIs – The vision of customer-centric innovation is accompanied by a darker reality. Each API serves as both an opportunity and a potential entry point for malicious actors. There is no room for compromise when it comes to security and compliance. 

Banking-as-a-Service (BaaS) enables rapid deployment of banking services through pre-built infrastructure. However, shared risk is a genuine concern: a breach within one partner’s system can cascade throughout the entire ecosystem, jeopardizing stability and eroding trust. 

Embedded Finance – Payments and lending functionalities integrated directly into retail applications, delivery platforms, and other services. While seamless and unobtrusive to users, these channels extend beyond traditional security boundaries. Protecting them requires a proactive approach involving continuous monitoring and comprehensive end-to-end security measures. 

Cloud Migration facilitates faster scaling, yet introduces risks such as misconfigurations, unclear responsibilities, and increased exposure. Over 25% of BFSI leaders now rank cloud adoption among their top cybersecurity concerns, underscoring the importance of robust cloud security strategies. 

Artificial Intelligence already utilized by approximately 75% of financial institutions, with an additional 10% planning to adopt soon. AI enhances operational efficiency, improves insights, and automates risk assessments. Nonetheless, it also introduces new threats, including manipulated models, synthetic fraud, and AI-driven phishing attacks, which complicate the distinction between genuine and malicious activity. 

While innovation drives growth, it simultaneously amplifies vulnerabilities. In today’s digital economy, progress and security must advance hand in hand. 

The expanding threat landscape

The harsh reality is this: every new service introduces additional vulnerabilities. Each innovation expands the attack surface. Being targeted is no longer a question of ‘if’, but ‘when’. When an incident occurs, rapid response, effective detection, and swift recovery become the only priorities.

The numbers are grim: Ransomware dominated 2024, making up 42% of incidents in the financial sector. Phishing struck nearly one in four attacks, with 24% specifically targeting banking customers. Human error accounted for over 25% of breaches, often from deliberate policy violations. Infostealers are rampant: one in fourteen infections leads to stolen card data

But lurking behind these everyday breaches are Advanced Persistent Threats (APTs) — organized, well-funded, and relentless adversaries. Groups such as Carbanak execute global campaigns worth billions, exploiting zero-day vulnerabilities and supply chain weaknesses. These are not amateurs: they are professionals hunting maximum damage.

Even the most trusted tools can become liabilities. In 2024, a zero-day vulnerability in the world’s most widely used browser served as a gateway for targeted attacks, while supply chain compromises quietly infiltrated software updates across the industry.

The consequences are tangible and costly. Last year, BFSI organizations represented 18% of all reported security incidents — more than any other sector. The repercussions range from disrupted customer services to attacks that remain undetected for weeks, eroding trust and confidence.

For BFSI leaders, this presents a paradox: technological advancement fuels growth but simultaneously increases exposure. Ensuring survival requires a fundamental rethinking—developing adaptive, integrated, and resilient systems capable of defending at the same pace as innovation.

Forging a resilient future: strategic cybersecurity in finance

Innovation alone is insufficient, resilience is paramount. Financial organizations must adopt a comprehensive, ecosystem-based cybersecurity strategy—one that empowers teams to address every threat, whether anticipated or hidden.

Step 1: Comprehensive preparation and audit. Begin with a thorough assessment of your entire infrastructure. Review existing processes, identify vulnerabilities, and address weaknesses before adversaries can exploit them. While internal teams can lead these efforts, engaging external specialists provides valuable fresh perspectives that can uncover concealed risks 

Step 2: Advanced technology deployment. Equip security teams with integrated platforms capable of monitoring and controlling all attack vectors. Rapid detection and swift response are essential, ensuring protection across the entire organization.

Step 3: Continuous learning and intelligence. As threats continually evolve, maintaining an up-to-date understanding of the threat landscape is critical. Leverage advanced threat intelligence and analytics to proactively inform and adapt your security strategy. Additionally, foster a human firewall through regular awareness programs, empowering employees to recognize phishing attempts, adhere to policies, and serve as the first line of defense.

By integrating cutting-edge technology, ongoing education, and trusted partnerships, organizations can establish a resilient, fault-tolerant infrastructure. Such an approach minimizes financial risks, ensures regulatory compliance, and guarantees uninterrupted business continuity.

Cybersecurity providers with deep expertise in the BFSI sector—such as Kaspersky, which has safeguarded thousands of organizations worldwide for over 15 years—understand these challenges and offer tailored solutions aligned with the most stringent standards.

In the digital era, the future belongs to those who innovate and defend at the same speed. Discover how to lead this race on our interactive webpage.