# Turning the burden of compliance into competitive advantage Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-07-27 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: Navigating the Growing Cyber Threats in UK Banking Meta Description: Discover how digital banking trends in the UK bring both convenience and cyber threats. Learn how the right technology can streamline operations and enhance URL: https://financedigest.com/turning-the-burden-of-compliance-into-competitive-advantagehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2-3-1736838125414-compressed.jpg) _By_ **_Ben Bulpett,_** _Identity Platform Director, EMEA, SailPoint_ Banking is no longer limited to four walls of a building. In the UK, three-quarters ( [73%) of consumers now use digital banking channels on a weekly basis](https://www.hsbc.com/insight/topics/how-banking-will-change-after-covid-19), as people grow increasingly accustomed to their ease and convenience. But this isn’t without some downsides. Mobile functionality, blockchain integration and emergence of banking-as-a-service have led to a growing number of cyber threats for organisations, but also a growing [burden of compliance](https://www.financedigest.com/britain-plans-new-data-rules-to-ease-compliance-burden.html "Britain plans new data rules to ease compliance burden") requirements. GDPR is reported to have generated [€182 million in fines in 2020](https://www.itgovernance.eu/blog/en/how-much-does-gdpr-compliance-cost-in-2020) alone – on top of evolving FCA regulations. ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/ben-bulpett-450x693-1736838125406-compressed.jpg) Ben Bulpett, Identity Platform Director, EMEA, SailPoint However, [meeting compliance requirements](https://www.financedigest.com/how-automation-can-help-the-financial-sector-meet-gdpr-requirements.html "How automation can help the financial sector meet GDPR requirements") doesn’t have to be a cumbersome drain on time. With the right technology in place, it can mean [competitive advantage](https://www.financedigest.com/turning-big-data-compliance-into-a-competitive-advantage.html "TURNING ‘BIG DATA’ COMPLIANCE INTO A COMPETITIVE ADVANTAGE") – streamlining operations, driving efficiency, and closing security gaps. Key to this is the use of identity security which can [automate processes and permissions in line with changing job roles](https://www.financedigest.com/10-ways-automation-has-changed-the-role-of-the-cfo.html "10 ways automation has changed the role of the CFO") and responsibilities. **High risk** Financial services has one of the highest rates of insider data breaches, [costing $14.5 million last year alone.](https://www.proofpoint.com/uk/blog/insider-threat-management/how-insider-threats-impact-financial-services-industry) Whether it’s a disgruntled employee acting with malicious intent, or an employee accidentally clicking on an unsuspecting link, the level of access that staff have to sensitive information within a business makes them a potential vulnerability. This threat is [made worse given the banking](https://www.financedigest.com/fintech-v-the-banks-uneasy-bedfellows-or-a-match-made-in-heaven.html "FinTech v the Banks: Uneasy Bedfellows or a Match Made in Heaven?") sector is particularly prone to complex corporate structures and departmental siloes – all of which hinder an organisation’s visibility into different roles, responsibilities, and data access. Combined with the industry’s continued reliance on spreadsheets and [manual processes for tracking data](https://www.financedigest.com/from-sec-edgar-to-business-applications-exploring-an-alternative-to-manual-data-extraction.html "From SEC EDGAR to Business Applications: Exploring an Alternative to Manual Data Extraction") access and user identities, and you have the perfect recipe for inaccuracies and inconsistencies. Along with creating an auditing and reporting nightmare, this creates gaps in the [system prime for exploitation by threat actors who are keen to get their hands on the industry’s](https://www.financedigest.com/automotive-hmi-system-market-recent-industry-developments-and-growth-strategies-adopted-by-players.html "Automotive HMI System Market: Recent Industry Developments and Growth Strategies Adopted by Players") lucrative assets. **Separation of duties** Control over access is also critical given the [importance of separation of duties in banking and financial services to reduce the risk of error and fraud](https://www.financedigest.com/the-importance-of-a-proactive-and-collaborative-approach-to-reducing-contactless-fraud.html "THE IMPORTANCE OF A PROACTIVE AND COLLABORATIVE APPROACH TO REDUCING CONTACTLESS FRAUD"). No single [individual can control](https://www.financedigest.com/new-finance-app-gives-control-back-to-individuals.html "New Finance App Gives Control Back To Individuals") more than one part of a transaction. For example, an [employee can’t](https://www.financedigest.com/banking-and-financial-services-employees-want-to-speak-up-about-issues-at-work-but-cant.html "Banking and Financial Services employees want to speak-up about issues at work, but can’t") both createand pay invoices. [Preventing access to one or more of these activities is crucial to preventing the misappropriation of funds](https://www.financedigest.com/action-is-needed-to-prevent-payments-disruption-from-incoming-eu-funds-transfer-regulation-says-new-deutsche-bank-whitepaper.html "Action is needed to prevent payments disruption from incoming EU Funds Transfer Regulation, says new Deutsche Bank whitepaper"). Separation of responsibilities is a well-entrenched concept, but in reality it can prove challenging. Banks typically define what roles are forbidden to overlap, but with the [growing number of apps and systems](https://www.financedigest.com/the-radiology-information-systems-market-shall-be-growing-unabatedly-in-the-future.html "The Radiology Information Systems Market shall be growing unabatedly in the future"), administration can grow complex and error prone. Not to mention staff [moving from role to role through promotions and lateral transfers](https://www.financedigest.com/transfer-firm-moves-into-polish-markets-with-the-unbanked-in-mind.html "Transfer Firm Moves Into Polish Markets With The Unbanked In Mind"), which can result in ‘over-permissioning’ or ‘entitlement creep’. Add to the mix all the different logins for various licenses and [subscriptions that different employees have access to during their time in an organisation](https://www.financedigest.com/how-fs-organisations-can-use-subscriptions-to-get-ahead-in-the-api-economy.html "How FS organisations can use subscriptions to get ahead in the API economy"), and the situation can quickly spiral out of control, increasingly the vulnerability of systems to exploitation. **Identity is the new perimeter** Getting access requirements right must be a [top priority for organisations](https://www.financedigest.com/adding-value-to-your-organisation-by-attracting-top-gen-z-finance-professionals.html "Adding value to your organisation by attracting top Gen Z finance professionals"). Doing so not only means protecting against [cyber threats](https://www.financedigest.com/cyber-threats-for-finance-organisations-to-watch-in-2023.html "Cyber threats for finance organisations to watch in 2023"), but meeting compliance requirements and streamlining operations. To achieve this, [financial institutions](https://www.financedigest.com/what-the-future-holds-for-financial-institutions-in-2023.html "What the Future Holds For Financial Institutions in 2023") must have the right technology in place that provides them with visibility over who has access to what information and when. Using [identity security](https://www.financedigest.com/the-push-and-pull-of-identity-security-adoption-in-the-financial-services-industry.html "The push and pull of identity security adoption in the financial services industry") powered by AI and machine learning, processes can be automated and access granted on a need-to-know only basis according to the roles and responsibilities of individuals – no more, no less. An [automated system can not only find and disable accounts](https://www.financedigest.com/accounts-payable-departments-lag-behind-in-ai-automation.html "Accounts Payable departments lag behind in AI automation") of ex-employees, it can also rectify access for existing users that is no longer appropriate, depending on movements within an organisation. Critically, it means being able to uncover and mitigate against potential threats fast – such as identifying and putting a stop to out of the ordinary, suspicious behaviour, for example, an unauthorised user attempting to access sensitive files. This also reduces the burden of repetitive manual tasks, freeing up IT [teams to focus on high-value activities rather than sorting password resets or additional](https://www.financedigest.com/tailify-bolsters-leadership-team-with-addition-of-julia-burton-brown-as-commercial-director.html "Tailify bolsters leadership team with addition of Julia Burton Brown as Commercial Director") data access, and subsequently provides a cost-effective solution. Automation ensures the accuracy and completeness of data [sets so critical](https://www.financedigest.com/pm-rishi-sunak-sets-out-priorities-for-britain-responds-to-critics.html "PM Rishi Sunak sets out priorities for Britain, responds to critics") for keeping on top of compliance. **Staying ahead of the game** [Meeting compliance](https://www.financedigest.com/why-leading-financial-institutions-are-relying-on-video-to-meet-compliance-needs.html "Why leading financial institutions are relying on video to meet compliance needs") requirements doesn’t have to be a headache for organisations. Through identity security, keeping on [top of this can mean competitive advantage in more ways](https://www.financedigest.com/5-top-ways-to-buy-ethereum.html "5 Top Ways to Buy Ethereum") than one – protecting the enterprise perimeter, streamlining operations and ensuring all data and users are properly accounted for. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---