Indian Lenders Lag Global Peers on Cybersecurity Spending
A recent study by the Boston Consulting Group revealed that Indian banks and financial institutions significantly fall behind their international counterparts in cybersecurity investments. The analysis indicated that amid the ever-growing threats posed by cybercriminals, Indian lenders are struggling to adapt and increase their budgets for information protection. While global banks place considerable emphasis on cybersecurity, Indian institutions often have insufficient high expenditures on cybersecurity systems, making them vulnerable.
According to the data, Indian banks spend only 0.1% of their total budget on cybersecurity, while global players spend an average of 0.3% - 0.5%. This disparity jeopardizes not only the protection of client data but also the overall stability of the financial system. Experts emphasize that if Indian lenders do not increase their cybersecurity budgets, they risk facing severe consequences, including data breaches and financial losses.
It is important to note that with the growth of digitization in the country and an increase in online transactions, the need for more substantial investments in cybersecurity is becoming increasingly urgent. Cyber threats are evolving, and banks must adapt to new challenges to protect both themselves and their clients. This situation compels Indian financial institutions to reassess their strategies and methods for data protection.
Despite inadequate investments, some Indian banks have begun to implement modern technologies and working methods in their operations to minimize risks. However, comprehensive measures and significant financial inflows are necessary to fully counteract cyber threats. Discussions about the need to increase the cybersecurity budget are becoming increasingly relevant among regulators and market participants.
