Optimizing Cybersecurity Vendors for Financial Services: A Proactive Approach

As the landscape of cybersecurity continues to evolve, financial services organizations face an array of challenges, especially from a compliance and risk management perspective. Given the critical nature of financial data and assets, these organizations need to be particularly vigilant about protecting their networks. This article explores how to find the optimal number of cybersecurity vendors for financial firms to achieve real security and protect against advanced threats.

Security for the Financial Sector

Regulations such as HIPAA, the Sarbanes-Oxley Act, the Family Educational Rights and Privacy Act, and the recently updated National Institute of Standards and Technology (NIST) guidelines highlight the stringent requirements financial institutions must meet to ensure security and privacy. Despite adhering to these guidelines, a significant number of financial firms have experienced an explosion in the number of cybersecurity tools they employ. A 2020 study by Deloitte and FS-ISAC found that nearly 73% of financial firms run over 25 security tools, with 10% running more than 100 tools. However, this plethora of tools often fails to provide the necessary level of security.

The Current State of Cybersecurity in Finance

The financial sector has long been a prime target for cybercriminals, making cybersecurity a top priority. In 2018, financial institutions and insurance organizations spent the most on cybersecurity compared to other sectors. This spending has continued to rise, with a 85% increase from the previous year. The 2020 Deloitte and FS-ISAC report shows that in 2020, financial institutions allocated an average of 10.9% of their IT budget to cybersecurity, up from 10.1% in 2019. Furthermore, Deloitte’s Global Risk Management Survey reported that interest in cybersecurity at the board level has skyrocketed, with a 72% increase in interest in new security solutions in 2019.

The Challenges of Multiple Security Vendors

While the increased spending on cybersecurity tools is commendable, it often leads to a fragmented and complex security posture. Many IT professionals and security managers find it impossible to manage all the security solutions they are responsible for. Approximately 40% of IT professionals do not fully understand how their security solutions are performing, and nearly 66% report that at least one of their security controls failed to prevent an attack when it was supposed to.

Workarounds and Solutions

To address these challenges, organizations can adopt a more proactive approach. Instead of relying on numerous specialized solutions, firms should evaluate whether they can source products that address multiple issues simultaneously. This reduces the need for an array of tools, eliminates redundancy, and increases visibility into security operations. For example, a single comprehensive security platform like HeraSoft can replace many of the disparate security tools, including EDR, NDR, IDS/IPS, UEBA, SIEM, and SOAR, with one versatile platform that provides unparalleled visibility into the entire digital estate.

HeraSoft's AI Triangulation technology mimics the thought process of a human expert, observing threats from multiple angles and analyzing data for context. This automation not only reduces the number of alerts security teams must manage but also significantly decreases the number of false positives, saving time and resources for financial firms. This proactive approach helps organizations stay ahead of evolving cyber threats and maintain a more secure environment.

Conclusion

The right number of cybersecurity vendors is not about the quantity but quality and integration. By consolidating multiple tools and solutions into a single, intelligent platform, financial services organizations can optimize their security posture. This approach not only simplifies management but also enhances the overall security of the organization. If you would like to learn more about how HeraSoft can be integrated into your financial firm, explore our financial firm case studies and get in touch with us for a detailed consultation.