According to the Infosys Bank Tech Index, cybersecurity spending now exceeds investments in artificial intelligence (AI) within US banks. This resource reallocation reflects a shift as traditional security measures are insufficient against evolving threats and regulatory compliance needs.
In 2023, the average cost of a data breach in the US reached $9.5 million, surpassing the global average of $4.4 million, due to complex banking tech environments and a lack of specialized talent.
An Integris survey of over 1,000 US bank executives indicates that 88% plan to increase their IT budgets by at least 10% in 2025, with cybersecurity as the top priority for 86% of respondents, ahead of AI, cloud, and system modernization. This surge involves a refocus on higher value-added technologies, such as transitioning from SIEM to XDR platforms, which offer unified visibility and automated incident response.
However, a talent shortage hinders the implementation of these strategies. In North America, 49% of tech hires in banks are cybersecurity specialists, exceeding the global average of 35%. To address this, some banks are partnering with tech firms for continuous training programs, aiming to upskill and retain talent.
In a heavily regulated banking sector, cybersecurity is now a competitive factor, influencing customer trust and long-term sustainability. Banks must integrate tech, human resources, and regulatory considerations into a comprehensive security strategy.