The fintech world has evolved greatly over the years and the advent of emerging technologies is bringing about a massive change. This change is quickly influencing the interactions fintech providers, consumers and businesses. These advancements promise enhanced customer experiences and hold the potential to significantly expand financial inclusivity across different demographics.
Nevertheless, amidst all of the optimism, there is a pressing concern in the form of the escalating threats posed by cybercriminals. With each technological stride forward, there a corresponding vulnerability is often around, exposing consumer data to potential breaches and financial institutions to cyber-attacks.
DORA’s Role in Improving Cybersecurity
Because of all the cyber breaches and threats that people have to deal with, the European Union introduced DORA as its latest legislative initiative aimed at improving the cybersecurity and operational preparedness of all stakeholders within the financial ecosystem.
Scheduled to be fully enacted by 2025, DORA represents a comprehensive framework intended to mitigate the growing threat of cyber-attacks and other risks that consumers and financial firms tend to face.
This landmark regulation mandates stringent measures to ensure the resilience of digital infrastructures across the financial sector. DORA seeks to enhance the reliability of financial services by requiring robust cybersecurity protocols. By doing so, it aims to improve consumer trust and safeguard sensitive financial data from malicious threats.
Poised to Secure the Future of Work
As mentioned earlier, the European Union is poised to implement the Digital Operational Resilience Act which is also referred to as DORA. Scheduled to come into full effect in 2025, this program was created to ensure that all participants in the financial system have strong measures in place to address cyber-attacks and other risks that.
It would be fair to say that this comprehensive framework was created upon five important pillars, including ICT incident reporting, ICT risk management, ICT third-party risk, digital operational resilience testing, along with information and intelligence sharing.
At the heart of DORA is the emphasis on ICT risk management, a critical component for minimizing the chances of unexpected cyber-attacks.
This pillar mandates thorough risk assessments aimed at proactively preventing and detecting potential threats. By prioritizing comprehensive risk management practices, firms can better protect their systems and data, thus enhancing their overall operational resilience.
Is this the Answer the Fintech World Needs?
While there are still some months left before DORA becomes operational, people in the fintech sphere have been wondering if it would secure the future of work. Most experts believe that DORA is a step in the right direction and could give the fintech sector the boost it needs to truly thrive in the long term, making the space secure for everyone.