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In today’s interconnected and technology-driven landscape, cybersecurity has become a top concern for financial institutions (FIs). FIs face sophisticated attacks, including fraud, identity theft, and ransomware, among many others, and both the variety and magnitude of these attacks demand a comprehensive approach to protect sensitive data and safeguard the integrity of lending operations.
While cybersecurity measures are undoubtedly crucial, it is imperative for FIs to also recognize the growing importance of cyber resiliency. As cybercrime is expected to hit $10.5 trillion annually by 2025 and threats to the industry continue to advance in complexity, the ability to quickly recover and adapt after a cyber incident becomes equally vital.
In this article, we will delve into the concept of cyber resiliency and explore strategies that lenders can consider adopting to bolster their defenses against a wide array of cyber threats, ensuring the continuity and security of their lending processes.
Security Is a Journey: Balancing Cybersecurity With Resiliency
In the digital era, cyberattacks are a certainty—and successful attacks have the power to cripple business operations, generate crushing liabilities, and cause reputational damage in the eyes of customers, investors, regulators, and the media.
Achieving a robust defense for lending operations goes beyond implementing security programs and technologies and requires striking a delicate balance between organizational processes and security measures. Security is a journey, not a destination. Staying ahead of evolving threats and effectively mitigating risks requires both cybersecurity and cyber resiliency.
A one-size-fits-all security approach is not only ineffective but also dangerous. Lenders must adopt a risk-based approach that aligns with their unique circumstances, accounting for risk factors, risk appetite, and operational landscape.
Embracing a proactive stance towards security allows FIs to anticipate potential vulnerabilities and threats, enabling them to implement preemptive measures and effectively safeguard their digital lending and account opening processes. By adopting this proactive mindset rather than a reactive one, FIs can build a robust cybersecurity framework that promotes both security and resiliency.
This approach is more important than ever as cyber attackers take aim at the financial sector. According to McKinsey & Company research, based on a survey of more than 30 CROs at financial institutions, cybercrime was consistently ranked as a top five risk by more than half (58%) of respondents. What’s more, FIs are increasingly transitioning toward a more agile, resilient stance rather than maintaining a limited crisis-response approach. McKinsey also notes the shift to a more “holistic resilience function with a strategic role” has accelerated as simultaneous crises and disruptions impact the industry.
At MeridianLink, Security Is in Our DNA
At MeridianLink®, security is not an afterthought—it is an inherent part of our DNA. We understand the critical importance of building secure and resilient processes from the ground up. That’s why our digital lending and account opening software is designed with security at the forefront. We take a preventative and proactive approach, embedding security measures within our products to make it easier for FIs to protect their sensitive data and mitigate risks.
We have expanded our capabilities in numerous ways that enable cyber resiliency for our customers including:
- Deploying robust network and cloud security architecture
- Improving prevention measures and detection capabilities across the entire footprint
- Improving overall business continuity and disaster recovery capabilities
- Launching automated code scanning across our entire product suite
- Launching a bug bounty program to identify and address vulnerabilities proactively
- Automated cloud security monitoring in real-time for improved visibility and control
As a further investment in our commitment to being “secure by design,” MeridianLink also offers security services via our marketplace of trusted partners, including Socure, Equifax®, and other major credit bureaus. By working with partners who provide additional layers of security expertise, we support customers in their efforts to mitigate fraud on the front end and to fortify the protection of lending operations.
With MeridianLink, you can have confidence in the security of your processes right from the start. Learn more about our approach to cyber resiliency and security. Chat with one of our representatives today.