You might well have seen the recent news of a major data breach within a supplier of core banking systems to some of the UK’s specialist banks and building societies. This is not something any us wish to occur and we truly hope that the matter is satisfactorily concluded for the supplier, as well as any of their clients and customers affected.
What this breach does re-emphasise however, is that in a world where cyber-attacks are becoming increasingly sophisticated, we all need to take practical steps and act decisively to protect sensitive data.
PROVING YOUR WORTH
For lenders, banks and building societies looking for partners, it highlights the imperative to ensure those partners have the most stringent security in place – and the attestations to prove they have. When procuring core banking and loan servicing suppliers, the standout minimum certifications to look out for are both ISO 27001 and SOC 2 Type II attestations.
These mean suppliers work to the highest globally recognised standards that ensure data confidentiality, integrity, and availability. These frameworks are the cornerstone of a robust risk management strategy, enabling suppliers to proactively address emerging threats.
Although it is acceptable just to accept ISO 27001, the increasing number of hacks and breaches – and the losses and fines associated with these – mean that it is prudent to only work with technology suppliers that go beyond this minimum.
However, the fight against data breaches is about much more than technology. Businesses must foster a culture of security through employee training, strong password policies, and multi-factor authentication. Regular penetration testing, 24/7 monitoring, and compliance with global standards such as those mentioned above, are essential to staying one step ahead of attackers.
SOLID REPUTATION
Selling into the specialist, building society and Tier 1 sectors, it is important for suppliers, like Phoebus, to not only have the right security in place, but also a solid reputation built up over many years, for safeguarding clients through robust security frameworks, cloud-native solutions, as well as a dedicated team of experts.
When selecting suppliers, lenders and other finance providers should look out for those that provide cloud-native solutions, deployed on recognised environments such as Amazon Web Services (AWS). This should feature cutting-edge security controls such as end-to-end encryption, zero-trust architecture and real-time threat monitoring. For example, by leveraging AWS’s industry-leading infrastructure, Phoebus can deliver scalable and secure solutions tailored to clients’ needs.
Constant investment in security, also has to be a non-negotiable as the cyber threat continues to evolve and grow.
Cybersecurity is not optional; it is a strategic imperative when procuring core lending and banking suppliers. By combining advanced technology with best practices, suppliers such as Phoebus, can prevent data breaches and build customer trust.
