Financial services firms are expected to boost IT spending in an effort to tighten up cybersecurity, according to new data from PwC UK and the CBI.
The latest results from the CBI/PwC Financial Services Survey 2021 show that 70% of firms are planning to invest more over the next 12 months, almost double compared to 2020.
Three quarters of financial services firms are looking to improve their ability to detect and respond to cyber breaches, while 67% of banks, insurers and investment managers planning on putting a greater focus on how they respond to new or emerging cyber threats.
Of the firms surveyed, 67% have operations outside of the UK against 33% that do not. Of those that have outsourced operations, only 41% said that they are considering either completely or partially offshoring IT activities in the year ahead.
“What our survey shows is that the move to hybrid ways of working plus the rapid acceleration of digital transformation is causing financial services to take another look at their IT infrastructure,” Isabelle Jenkins, Leader of Financial Services at PwC UK.
“Despite the obvious benefits there are of course heightened risks, not least from hackers accessing confidential data both from customers but also from firms themselves.
“Though better prepared than most sectors, it’s clear that banks, insurers and investment managers are expecting an increase in cybercrime.
“This means that for FS firms, cyber security is no longer simply a bolt on but rather something that needs to be designed into the business and IT architecture, and our results show that businesses now understand the need to invest.”