Majority of UK financial institutions putting priority on cybersecurity – Lloyd’s research claims

September 16, 2019

Majority of UK financial institutions are prioritising cybersecurity technology as risk increases, a Lloyd’s bank study claims.

The Financial Institutions Sentiment Survey received responses from over 100 senior decision makers from global banks, insurers, intermediaries, investors, and asset managers.

In the report it found that 70% said that cybersecurity had become the priority for investment. This is a significant increase from last year, when only 46% of respondents put it as one of its top three priorities, falling behind improving customer satisfaction (49%) and lowering operating costs (48%).

The top three risks identified by respondents were the UK’s departure from the EU (58%), economic uncertainty (36%), and new regulation (31%). Cybercrime became an increased risk, moving from eighth to fourth.

Another finding from the report was that 58% of firms are expecting growth in the UK economy to slow down in the next 12 months, up from 29% in 2018. The

Furthermore, 54% of those questioned stated they are less optimistic about the future of their industry in the past 12 months. Although, 40% of firms expect their own revenues to increase.

As Brexit nears, 59% of respondents said they were ready for no-deal Brexit with little or no dependency on a transition period of extension.

Lloyds Bank managing director Robina Barker Bennett said, “The past year has presented many challenges for businesses. Against a backdrop of on-going global economic turbulence, it is unsurprising that sentiment among financial institutions towards the sector and the wider economy is lower than in previous years.

“That said, the responses to this survey show the sector’s resilience during difficult times and it is especially encouraging to see that firms plan to continue investing in the UK.

“In 2019, firms are arguably more dependent than ever on technology. With this rapid advancement, the risks from cybercrime are increasing, placing extra pressure on financial institutions to change the way they operate.”