We’ve been on a roll this week in our coverage of the financial services market. On Monday, we demystified FinTech and brought you the top vendors in that market on Tuesday. Yesterday we covered 16 companies that are working to make payments more secure, with biometric-enabled POS systems.
Today, we want to wrap up our coverage of the topic with a look at the other side of the financial security equation. Today, we’re going to explore how banks are keeping your money safe, with BFSI security.
First, we’ll start with the bad news. There are a lot of ways that someone with malicious intent can get access to your personal information, and even bank details. Cyber attacks are on the rise, forcing governments and banks to take more extreme steps to protect customers.
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But now the good news: There is a lot of money being put towards protecting your financial information. The global BFSI security market was valued at $14.58 billion in 2015 and will reach $27.33 billion by 2020, growing at a compound annual growth rate of 13.39%.
Physical vs. cyber security
The global BFSI security market is split pretty evenly between physical and cyber security. The former was valued at $7.45 billion in 2015 and will reach $13.51 billion by 2020 while the latter was worth $7.13 billion in 2015 and will reach $13.82 billion by 2020.
Global BFSI security market by technology segmentation 2015-2020
Source: Technavio
Physical security—the software, access control and surveillance systems that present a physical barrier to anyone with ill-intent—is just as relevant as it ever was for bank security, albeit with a few updates over the decades. And rather than chipping away at the physical segment’s market share, cyber has grown to complement physical security.
All this growth is good news for anyone who doesn’t keep their life’s savings in a mayonnaise jar under the bed. It is estimated that hackers and cyber criminals have illegally accessed more than half of the top 50 banking sites in the past decade. And immediate monetary losses here are only a small part of the implications of a hack.
A security breach can mean irreparable damage to a bank’s reputation, and result in major revenue losses in the long run. To mitigate these risks, stakeholders in the BFSI sector are rapidly responding to critical threats by enhancing internal security and adopting cyber security solutions.
And as the number of transactions carried out online continues to rise, so too will demand for data confidentiality and cyber security solutions for banking, which will result in dramatic market growth over the projected period.
