# Budget Cuts, Staff Shortages and Cyber Threats Keep IT Leads Awake at Night as GDPR Looms
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-03-23
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Why European Financial Institutions Struggle with
Meta Description: Discover why 43% of European financial IT executives fear cyber-attacks, impacting digital innovation and budgets. Find out more from Excelian, Luxoft Financial
URL: https://financedigest.com/budget-cuts-staff-shortages-and-cyber-threats-keep-it-leads-awake-at-night-as-gdpr-loomshtml

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_Digital innovation held back at Financial Institutions as IT teams firefight security threats_

43% of IT executives at European financial institutions reveal that fears of a cyber-attack keep them awake at night – two months before the General Data Protection Regulation (GDPR) comes into force, according to figures published by financial services IT consultancy and service provider Excelian, Luxoft Financial Services – a division of Luxoft (NYSE:LXFT).

The survey of over 200 IT executives working in capital markets, wealth management and corporate banking reveals that although 89% agree implementing a cybersecurity strategy is a top priority, budget cuts and staff shortages make implementing cybersecurity strategies difficult. 55% of respondents [cite a lack of IT investment](https://www.financedigest.com/ford-delays-spanish-investments-citing-revised-outlook-for-europe.html "Ford delays Spanish investments, citing ‘revised outlook for Europe’") as a significant source of stress in their role, rising to 63% of professionals in the UK alone. However, those in Switzerland and Austria are less concerned about budget cuts, with only 40% and 43% of IT professionals expressing frustrations, respectively.

IT executives also feel they don’t have access to the right talent and are not fully trained – 54% [say they are frustrated by a lack of training and learning opportunities](https://www.financedigest.com/increasing-trend-of-online-shopping-to-create-new-growth-opportunities-for-stretch-sleeve-and-heat-shrink-labels-market-says-tmr.html "Increasing Trend of Online Shopping to Create New Growth Opportunities for Stretch Sleeve and Heat Shrink Labels Market, Says TMR"), whilst 26% are also kept awake by a skills shortage in their IT department. As a result, 36% of IT professionals working in the financial [services sector are reluctant to recommend increasing cybersecurity](https://www.financedigest.com/the-state-of-cybersecurity-in-todays-financial-services-sector.html "The state of cybersecurity in today’s financial services sector") spend.

_“IT departments in banks are being pulled in two directions,”_ **says Marcin Swiety, Global Head of Luxoft’s Information Security practice**. _“Banks want to focus on digital innovation, but IT professionals feel unable to escape from the ever-present [cyber threat](https://www.financedigest.com/using-threat-intelligence-to-minimise-cyber-insurance-risks.html "Using Threat Intelligence to Minimise Cyber Insurance Risks"). Budget cuts are [leaving smaller teams with fewer spare hours in the day](https://www.financedigest.com/putins-victory-day-speech-leaves-no-clue-on-future-escalation.html "Putin’s Victory Day speech leaves no clue on future escalation"). Unable to plan ahead, they spend their days firefighting problems and [upgrading](https://www.financedigest.com/sweden-to-upgrade-berzelius-supercomputer-with-nvidia-ai-systems.html "Sweden to upgrade Berzelius supercomputer with Nvidia AI systems") legacy systems.”_

European IT professionals working in financial institutions on both the buy-side and sell-side also believe that insufficient cybersecurity [strategies](https://www.financedigest.com/personal-finance-strategies-for-saving-and-investing.html "Personal finance: strategies for saving and investing") combined with reacting to other daily struggles is preoccupying too much of their time. On average, IT [executives say](https://www.financedigest.com/societe-generale-says-two-senior-executives-to-leave-bank.html "Societe Generale says two senior executives to leave bank") more than half of a CIO’s role is responding to events as they happen, whereas only 40% of their role is proactive.

The complexity of internal [technology systems](https://www.financedigest.com/computer-assisted-anesthesia-systems-market-industry-analysis-opportunities-technology-demand-top-players-and-growth-forecast-2027.html "Computer Assisted Anesthesia Systems Market Industry Analysis, Opportunities, Technology, Demand, Top Players and Growth Forecast 2027") at larger and more established institutions in particular also forces those CIOs to have less time to implement change. 28% of IT executives [say that the complicated internal](https://www.financedigest.com/efg-international-says-profitability-improved-in-first-nine-months.html "EFG International says profitability improved in first nine months") processes make it more difficult to implement cybersecurity strategies.

_“Most financial institutions want to capitalise on technologies like blockchain, AI and the cloud, but they are difficult to implement both [securely and at pace,”](https://www.financedigest.com/how-to-handle-cyber-security-during-mergers-and-acquisitions.html "How to Handle Cyber Security during Mergers and Acquisitions")_ **says MrSwiety.** _“If we want to see digital transformations that are truly protected from the cyber threat, then institutions must find a way for IT departments to free up their time.”_


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