With increasing risks of cyber threats, banks are facing an unprecedented challenge of data breaches and are therefore strengthening their cyber security postures. Financial sector faced almost three times the cyber-attacks as compared to that of the other industries. Data breaches (both internal through fraud and external through cyber criminals) leads to the exponential rise in costs It has been estimated that cost of implementing and managing the cyber security infrastructure will increase over 40% by 2025. There is an increase in biometrics and tokenization as banks have begun to recognize that in addition to be a solution for payments these controls are also useful in security the sensitive data. Customers are using biometrics for banking activities such as authentication for mobile banking, transaction at ATMs and payments with digital channels becoming the preference choice of customers for banking services, banks will also need to leverage advanced authentication and access control processes, without any compromise to customer experience.

 Strict compliance regulations: Managing regulatory compliances has become enormously challenging for the banks. Over the past few years the volume of regulations has increased dramatically. Along with the larger banks, smaller ones too are required to fulfil the regulatory obligations.

 The struggle to secure customer data: There is number of ways in which violation of privacy can take place in banking sector like stolen or loss card data, unauthorized sharing of data with third parties and loss of client’s personal data due to improper security measures.

 Third party risk: Banks need to conduct due diligence on third parties they are associated with. As per Payments card industry data security standard, third parties need to report any critical issues associated the card data environment to the bank.

 The development in technologies is leading to the latest cyber threats like next generation ransomwares, web attacks etc.