The financial services industry is increasingly reliant on technology and connectivity. While this brings numerous advantages, it also exposes banks to new and evolving cyber threats.
For banks operating in Switzerland, adhering to the strict regulatory standards set by the Swiss Financial Market Supervisory Authority (FINMA) is not only a legal requirement but also essential for maintaining the trust of customers and safeguarding sensitive financial information.
We will explore the challenges faced by Swiss banks in achieving and maintaining FINMA accreditation, the vital role of cyber security in this process, and how CloudGuard, a trusted Microsoft cybersecurity partner, can help banks navigate these challenges successfully.
Challenges in achieving FINMA accreditation
Obtaining and retaining FINMA accreditation is a rigorous process that demands meticulous attention to detail and a robust security framework. Swiss banks face several challenges along the way, including:
Evolving cyber threat landscape
Cyber threats continue to evolve rapidly, becoming more sophisticated and complex. Swiss banks need to stay ahead of these threats and continually update their security measures to meet FINMA’s stringent requirements.
FINMA tells us:
Experience from previous years has shown that attackers were increasingly targeting smaller institutions, and that those institutions were affected by above-average numbers of successful cyber attacks.
Compliance and regulatory complexity
Complying with the extensive regulatory framework established by FINMA is a complex undertaking. Banks must navigate a myriad of regulations, guidelines, and best practices to ensure their operations align with FINMA’s expectations.
Data protection and privacy
Safeguarding customer data is of utmost importance for Swiss banks. Adhering to strict data protection and privacy regulations, such as the General Data Protection Regulation (GDPR), is vital for maintaining the trust of customers and avoiding penalties.
Insider threats and internal controls
Ensuring robust internal controls to mitigate insider threats is a critical aspect of FINMA accreditation. Banks must establish strict access controls, implement comprehensive security awareness training programs, and monitor employee activities to prevent unauthorised access and data exfiltration.
FINMA has increased the intensity of their supervision over the industry’s security practices, labelling cybersecurity as the most significant operational risk for financial institutions. https://www.finma.ch/en/documentation/dossier/dossier-cyberrisiken/
The role of cyber security in maintaining FINMA accreditation
Cybersecurity plays a pivotal role in helping Swiss banks achieve and maintain FINMA accreditation. By partnering with CloudGuard, banks gain access to cutting-edge security solutions and expertise to address these challenges effectively.
Advanced threat detection and prevention
CloudGuard leverages artificial intelligence and machine learning to detect and prevent advanced cyber threats. The proactive approach helps banks identify potential risks, mitigate attacks, and prevent data exfiltration.
Javid Khan, CTO of CloudGuard, talks us through how we use AI in our PROTECT Managed XDR service.
Robust compliance management
CloudGuard provides comprehensive solutions to help banks streamline compliance management. The comprehensive tools and frameworks designed specifically to address FINMA requirements ensure banks have a well-documented and auditable security posture.
Data protection and privacy solutions
CloudGuard offers advanced data protection and privacy solutions to help banks secure customer data and adhere to regulatory requirements. From encryption and access controls to data loss prevention, CloudGuard ensures that sensitive information remains confidential and protected.
Insider threat detection and mitigation
CloudGuard’s solutions include robust insider threat detection and mitigation capabilities. By monitoring user behaviour, CloudGuard helps banks identify suspicious activities proactively, prevent internal data breaches, and enforce strong access controls.
CloudGuard’s industry experience
CloudGuard recently partnered with radicant bank ag (radicant), the first digital sustainability bank in Switzerland.
As partners, we bring an unmatched level of expertise, catering for radicant’s demanding level of protection through a combination of human and machine intelligence.
Christine Fahlbery, radicant’s CISO commented:
I am impressed by the expertise and customization of CloudGuard’s solution and services.
Read the full partnership press release.
CloudGuard understands the critical importance of maintaining FINMA accreditation and securing the sensitive information of Swiss banks and other highly regulated Financial Service organisations.
With our proven track record, we are confident in our ability to help these organisations overcome their cyber security challenges.
What can banks achieve by partnering with CloudGuard?
Strengthen their security posture
Leverage our advanced threat detection, threat intelligence and prevention technologies to proactively identify and mitigate cyber threats, ensuring robust protection against evolving risks.
Streamline compliance management
Utilise our comprehensive assessment services to simplify the process of adhering to FINMA regulations and demonstrate a well-documented security posture.
A large proportion of the deficiencies identified by FINMA during its cyber-specific on-site supervisory reviews lay in the area of governance. FINMA frequently identified an unclear boundary between the first and second lines of defence, particularly among medium-sized institutions.
Safeguard customer data
Benefit from our data protection and privacy solutions, including encryption, access controls, and data loss prevention, to ensure the confidentiality and integrity of sensitive financial information.
Mitigate insider threats
Leverage our insider threat detection and mitigation capabilities to monitor employee activities, identify potential risks, and enforce strong access controls to prevent internal data breaches.
Key takeaway
Maintaining FINMA accreditation is a top priority for Swiss banks, and robust cybersecurity measures are essential in meeting the stringent requirements set by FINMA.
With CloudGuard, banks can access cutting-edge security solutions and expertise to address the challenges posed by cyber threats and regulatory compliance.
Contact CloudGuard today to learn more about our tailored cyber security solutions for the financial services industry or book a demo with our experts.
