The Central Bank of Kenya’s 2023 Banking Sector Innovation Survey revealed that cyber-risk is the most significant challenge for financial institutions in their innovation efforts.
According to the survey, nearly 91% of Kenyan financial institutions experienced at least one cyberattack in 2022.
Operational risk was identified as the second highest key risk area by 84 per cent of banks and 86 per cent of MFBs.
These statistics call for an urgent need for local banks to invest in cybersecurity. This is important, especially in this day and age where the world has transitioned to a digital economy.
Implementing methods and procedures designed to protect data is crucial for a successful digital transformation. The effectiveness of cybersecurity in banks directly impacts the security of our Personally Identifiable Information (PII), whether facing an accidental breach or a deliberate cyberattack.
NCBA Bank says it has proven its capability to effectively manage cybersecurity challenges within its network.
At a forum with its SACCO banking sector clients earlier this month, NCBA Group Managing Director John Gachora highlighted the bank’s commitment to strong cybersecurity measures.
In his remarks, Gachora revealed that the bank has made a significant investment of nearly $31 million through 2023 to improve and strengthen its cybersecurity infrastructure.
This significant financial commitment underscores NCBA’s commitment to protecting sensitive customer data and ensuring the integrity of its digital operations at a time when cyber threats are increasingly sophisticated. The investment reflects the bank’s proactive approach to protecting its systems from potential security breaches and cyberattacks and reinforces its reputation as a safe and reliable financial institution.
NCBA says it has made significant investments in many advanced technologies to enhance its cybersecurity posture and protect customer data. This includes systems migration to the cloud, enhancing operational efficiency and security, and putting in place a robust data quality management solution to maintain information integrity and accuracy across the platform. Additionally, the bank says it has upgraded its server infrastructure to improve performance and strengthen its defenses against potential vulnerabilities.
In further enhancing its cybersecurity posture, the bank has implemented strong protocols such as Security Assurance to ensure that all systems and all processes are in place to deliver stringent security standards. An information security awareness program was also launched, meant to inform staff and customers about best practices in identifying and mitigating risks of cybercrimes.
Observing the weight of third-party partnerships, the Bank has placed strict security controls on vendors and third-party providers to ensure that the companies externally maintain the same high standards of security.
In addition to the above, the bank has implemented advanced data security controls and integrated fraud management systems with firewalls that are able to quickly detect, prevent and respond to cyber threats. This kind of integrated approach helps the bank be proactive in keeping any potential risks towards a secure operating environment and ensure that those threats are identified and contained before a real situation happens.
‘’Today, I can confidently say that NCBA can detect most cyberattack activities within seconds,’’ Gachora says.
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