Financial institutions are navigating a growing cybersecurity minefield, with data breaches doubling since 2023 and increasingly affecting a company’s market confidence or regulatory standing, writes Gizmodo, citing a report from AInvest. Moreover, average breach costs have hit $4.8 million, and insider-related incidents cost $17.4 million per organization, the research shows.
With cyberattacks via third-party vendors and insiders rising, investors are beginning to scrutinize fintech and banking stocks for cyber resiliency as intensely as for earnings per share. Investors are also seeing a shift in the political and regulatory landscape. The European Union’s Digital Operational Resilience Act (DORA) and the UK’s Cyber Resilience Bill are ushering in higher standards for third-party risk and digital continuity in financial services.
For investors, the key takeaway is clear: cybersecurity maturity must factor into valuation and stock selection, especially within the fintech and banking sectors.