The increasing digitization of banking and financial operations all over the world is pushing up the demand for banking, financial services, and insurance (BFSI) security solutions. This is because the rising adoption of personalized and digital banking is augmenting the threat of data breaches and cyber-attacks. Moreover, with banking operations moving to cloud networks and adopting digital technologies, the threat of data theft, including breach of sensitive and confidential information, is rising rapidly.
Because of these risks, banks and other financial organizations are increasingly adopting advanced security solutions. For example, InvestBank P.S.C. adopted a security solution developed by Cisco Systems Inc. in May 2018 for supporting its digital transformation strategy. The security solution included Cisco’s advanced malware protection (AMP) for end points, for the detection and prevention of advanced threats. Banks are also adopting the internet of things (IoT) for enhancing the security of their operations.
This technology assists in the identification of the devices and systems used for transmitting vulnerabilities, tracking of the location of financial crimes, and remote monitoring of surveillance devices for the early detection of various fraudulent activities. Besides this technology, financial institutions are also adopting smart security solutions for detecting potential cyber-attacks, assessing risks, automating operations, and centralizing management systems. In many countries, intelligent security solutions are quickly becoming popular among the organizations operating in the BFSI industry.
The growing deployment of such security solutions by banks and other financial organizations is positively impacting the growth of the global banking, financial services, and insurance (BFSI) security market. Due to this reason, the market is predicted to witness a massive surge in its valuation, from $31.3 billion to $175.1 billion, from 2019 to 2030. Furthermore, the market is predicted to advance at a CAGR of 16.9% between 2020 and 2030.
Depending on security type, the BFSI security market is divided into information security and physical security categories. Between the two, the information security category is predicted to exhibit higher growth rate in the market in the future years. The category is further divided into data loss prevention, antivirus, unified threat management, encryption, risk and compliance management, and identity and access management categories.
Amongst these, the encryption category recorded the highest growth in the market in the past.
Globally, the BFSI security market would exhibit lucrative growth in Europe and North America in the upcoming years, as per the forecast of P&S Intelligence, a market research company based in India. This is credited to the implementation of strict data policies aimed at enhancing data security in these regions. Additionally, the growing focus of financial organizations on digitization and the rising popularity of cloud-based data storage solutions will further propel the market growth in these regions in the future.
Hence, it can be said with full surety that the adoption of security solutions by BFSI organizations will rise enormously all over the world in the coming years, mainly because of the rising digitization in this domain and the growing prevalence of data breaches and cyber-attacks in banking and financial operations.