TheCityUK
Cyber in Financial Services
8th December 2016
About TheCityUK – who we are
TheCityUK champions UK-based financial and related professional services. We are a
membership body, lobbying on the industry’s behalf, producing evidence of its
importance to the wider national economy. We seek to make the UK the most
competitive place for financial and related professional services to grow and locate
their business
TheCityUK produces evidence-based policy proposals on the issues that matter most to
our industry, our members and the customers they serve. We promote open markets
and seek to create the conditions which lead to business opportunities and economic
growth.
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Deploying our message through the media
Credible support for EU from a City
heavyweight “…TheCityUK attracts
heavy-hitters and has credibility…”
Anthony Hilton, Business & Finance
Commentator, Evening Standard – ‘City Comment’
“…the City’s most prominent lobbying
group…is regarded as doing an effective
job…”
Mark Kleinman, City Editor, Sky
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Profile of financial services in the UK
UK financial services
• Financial and related professional services employ 2.2 million people across the UK
• Our industry contributes 11.8% of economic output, 12% of tax
• Banks provide 80% of funding for SMEs
TheCityUK members
• About 200 members
• Our membership spans the spectrum of financial and related professional services
from banking to insurance to asset management, private equity, exchanges,
accountants, advisers, legal firms, payment firms.
Technology in financial services
Having a rapid and increasing impact on our industry, both threat and opportunity
• Around 40% of financial services activities and 35% of professional services activities
can be automated by adapting existing technology
• Biggest threat is Cyber
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Meeting Challenges, Delivering Opportunities
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Meeting Challenges, Delivering Opportunities
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Cyber Security
• Work with Cabinet Office and Marsh
• Key questions:
• Nature and scale of threat
• Steps to greater resilience
• How to promote exports
• UK competitive advantage but critical to
organisational innovation
• Goes beyond insurance
• Next steps
• Recommendations
• Board engagement with Cyber risk
• Increased industry collaboration and information sharing
• Support development of the UK Cyber sector
• Industry and government to invest further to widen the
pool of available talent
• Encourage wider adoption of existing cyber hygiene
• Develop an appropriate regulatory environment to
manage Cyber risk
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Cyber Security: why is it important?
• Everything in FS is digital. Digital is THE channel
• Threat increasing faster than resources to deal with it
• How do we get ahead of the criminals and those who would do harm?
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Cyber Security: Leaders first
• Thinking like a cyber attacker is
fundamentally important
• It is an asymmetric fight, with the probability
that the attacker has assets on the inside
• Walls don’t work anymore
• We need to be willing to bring the fight to
the enemy…the cyber attacker
• Has to be on the Board agenda
• Most C-Suite executives are not from a cyber
background
• Simply increasing the spend is not enough
• Board engagement and ownership is key
• When an attack happens the C-Suite will be
the centre of attention
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Cyber Security: information sharing
• Why? Because its not Intellectual property
• Intelligence not simply information
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Cyber Security: cooperation
• Private sector informs
• Government disrupts
• Govt needs intelligence
• Build capability to disrupt
• National Cyber Security
Strategy
• Centres of Excellence like
Skolkovo
• Build, buy, learn
• Israel, USA
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Cyber Security: skills and talent
• Understand the issue
• Understand the people involved
• Use the pathways that exist
• Win-Win
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Cyber Security: Cyber hygiene
• Cyber Essentials
• 80% of attacks
• Small companies –
Cyber Essentials
• Medium companies –
NIST / ISO
• GSFI – CBEST
• CBEST success
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Cyber Security: the right regulation
• Work with
Regulator
• Eco system
• Information sharing
• Stability
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Summary Points
Key insights
1. Technology is a huge potential competitive advantage and is changing our
industry
2. Needs to be considered in a broader context than banking
3. Innovation has always been part of financial services but pace of change is
important
•
Importance of agility
•
Learning from other industries
•
Interoperability
4. Technology is about your people, not just your systems
•
Skills and talent
•
Culture
•
Security
5. Senior level sponsorship and engagement with digital transformation is key for
success
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