1. Cyber in Financial Services
TheCityUK
Cyber in Financial Services
8th December 2016

2. 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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3. 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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4. 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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5. Meeting Challenges, Delivering Opportunities
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6. Meeting Challenges, Delivering Opportunities
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7. Work with Cabinet Office and Marsh Key questions:
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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8. 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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9. 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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10. Cyber Security: information sharing
Why? Because its not Intellectual property
Intelligence not simply information
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11. 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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12. Cyber Security: skills and talent
Understand the issue
Understand the people involved
Use the pathways that exist
Win-Win
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13. 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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14. Cyber Security: the right regulation
Work with Regulator
Eco system
Information sharing
Stability
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15. Summary Points Key insights
Technology is a huge potential competitive advantage and is changing our industry
Needs to be considered in a broader context than banking
Innovation has always been part of financial services but pace of change is important
Importance of agility
Learning from other industries
Interoperability
Technology is about your people, not just your systems
Skills and talent
Culture
Security
Senior level sponsorship and engagement with digital transformation is key for success
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