Data privacy and cybersecurity challenges in the digital transformation of the banking sector

Abstract

In the digital transformation of the banking sector, incorporating advanced technologies such as cloud computing, big data analytics, artificial intelligence, and blockchain has revolutionized financial services. However, this rapid digitalization brings significant data privacy and cybersecurity challenges. This study investigates the challenges banks have maintaining data privacy and cybersecurity while implementing new technologies, how they perceive these challenges, and what steps they take to reduce the risks involved. This qualitative study uses thematic analysis to examine interviews conducted with IT specialists in the banking sector. NVivo 14 software is employed to identify key themes and patterns related to the challenges, perceptions, and strategies regarding data privacy and cybersecurity in technology adoption. The findings reveal that the primary challenges faced by banks include integrating legacy systems, evolving compliance management, managing vendor risks, maintaining customer confidence, and mitigating emerging risks. Banks perceive robust data privacy and cybersecurity as critical for competitive advantage, regulatory compliance, and customer trust. Strategies include robust access controls, continuous threat monitoring, employee training, regulatory compliance with governance frameworks, and data encryption. This study provides original insights into the specific challenges and strategies related to data privacy and cybersecurity faced by banks. It contributes to the existing literature by highlighting the unique context of the banking sector and employing qualitative analysis to uncover nuanced perceptions and practices of IT specialists.