According to Barron’s, Mergers and Acquisitions (M&A) involving banks is on the rise again in 2018. Deregulation has a big part to play in this increase, but you might not realize the role technology plays in this activity. A marked increase in technology spending at bigger banks is driving higher returns on equity. Rolta|Advizex sees every day how investments in technology are modernizing these organizations and driving transformation that ultimately benefits all stakeholders.
Banks need to be concerned about security. According to Forbes, financial services firms fall victim to cybersecurity attacks 300 times more frequently than businesses in other industries. The typical American business is attacked four million times per year, but the typical American financial services firm is attacked a staggering one billion times per year. The rate of breaches in the financial industry has tripled in the past five years. The most costly attack types for financial firms are denial of services, phishing, and social engineering. Overall, banks lost $16.8 billion to cybercriminals in 2017. The cost of cybercrime also includes regulatory fines, litigation, the need to respond to negative media coverage, and lost business due to reputational damage, among others.