The BFSI Security market was valued at USD 35.3 billion in 2019 and is expected to reach USD 66.02 billion by 2025, at a CAGR of 11% over the forecast period 2020 - 2025. Banks and other financial institutes are under increasing scrutiny to ensure they have the appropriate security measures in place, especially in the wake of the numerous high-profile data breaches that have taken place over the last few years.
- The increasing implementation of regulatory standards, coupled with the rise in adoption of cloud-based security solutions and increasing modes of online payments is expected to give rise to advanced security solutions.
- This is because with the adoption of cloud-based technologies have made data more vulnerable to security attacks. Hackers have begun using malware such as Odinaff, Danabot, Camubot, and Backswap, to target banks that rely on the SWIFT network to send money-moving messages. This has led to customers demanding more effective solutions.
- In countries such as Qatar, where significant investments in infrastructure are being made for the 2022 FIFA World Cup, banks are also investing in advanced security solutions.
Scope of the Report
BFSI provides the foundation for many of the financial exchanges of all the other sectors. It has become an integral part of other critical infrastructure systems and an essential component of the overall national critical infrastructure. BFSI runs in a highly regulated environment. In various cases, security incidents occur because of non-compliance to various standards. If this happens, the consequences are severe. Thus, BFSI security is needed to ensure the long term visibility of banking and financial organizations and their data.
Key Market Trends
Rise in Cyber Data Breaches
- The BFSI sector is one of the critical infrastructure segment that suffers several data breaches and cyber attacks, owing to the large customer base that the industry serves and the financial information that is at stake. The financial service institutions have been identified to be four times more susceptible to cyber attacks, as compared to other industries, which is expected to drive the demand for such solutions.
- In 2017, Equifax, one of the three largest credit agencies in the United States, experienced a breach of over 140 million accounts, and over 209,000 credit card related data being stolen.
- Sears Holdings, the parent company of Kmart, in 2017, revealed that Kmart’s store payment systems were infected with malware. JPMorgan was a victim in one of the biggest bank breaches in history; where hackers got access to the financial information of around 3,500 customers. With such instances, the companies are bound to increase cybersecurity, which in turn will be the growth driver for the BFSI security market.
North America is Expected to Hold Major Share
- North America, particularly the United States is one of the largest markets for BFSI security owing to the region majorly depending on digital payments. The region is expected to witness healthy growth as well due to multiple government initiatives in the country demanding the need for better security solutions.
- Due to the country’s high dependence on online payments and recovering banking infrastructure from the financial crisis of 2007-2008, the banks in this region witnessed a high number of data breach attempts.
- The United States witnessed a total of 1579 data breaches in 2017, of which 8% of data breaches were accounted for by Banking institutes. Although this number is small, the amount of sensitive data available in the banking industry is very high making it a prime target for hackers, especially banks using SWIFT architecture.
The BFSI security market is competitive and consists of several major players. Many companies are increasing their market presence by introducing new products or by entering into strategic mergers and acquisitions.
- April 2018 - Consolidated Communications Holdings, Inc. launched its Distributed Denial of Service Mitigation solution. The solution offers customers robust reporting and analytics, and a view of traffic trends and potential threats, with the network intelligence to take corrective action before any organization’s infrastructure is impacted.
- November 2017 - LifeLock, a Symantec company, launched an identity protection product called LifeLock Senior to help adult children protect their senior parents from identity theft. LifeLock Senior allows the senior member and their child the ability to receive identity threat alerts, from financial to criminal.
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