Some FinTechs have become so successful over the recent months that they are challenging some of the world’s oldest major banks and insurances in revenue and market cap. Where no FinTech can compete, however, is on a track record of trust that dates back centuries, as in the case of some banks. When your entire business model is dealing with intangible assets, the trust of your customers and counterparties remains the only true currency you have. Today’s cyber security capability is yesterday’s bank vault.
Unfortunately, there are more than enough recent examples of digital companies, including prominent FinTechs such as Kreditech, being brought down by cyber security events, hacks or compliance failures. In light of seemingly overpowering, anonymous and omnipresent cyber criminals, a young FinTech organisation might despair. At second glance however, the majority of cyber attacks have not been complex. In most cases, the attacks were either through social engineering or exploiting very basic weaknesses or a combination of both.