PIMFA WealthTech has launched its latest TechSprint to identify how cyber security fintechs can support wealth managers in strengthening the industry’s cyber security defences.

The market network and technology platform, which brings the fintech and wealth and investment management sectors, was launched by the trade association PIMFA to focus on bringing financial institutions and the fintech ecosystem together to accelerate digital transformation and innovation across the industry.

Its TechSprint invites fintech firms to participate in tackling cyber security issues by identifying and evaluating a range of effective technology solutions that can be deployed to strengthen firms’ cyber security defences.

The question being posed to them is: “How can a specialist cyber security fintech provide unique and additional value to support wealth managers in preventing, detecting, responding and recovering from cyber security attacks?”

PIMFA said it chose the topic because the statistics were “both alarming and speak for themselves”.

The latest figures showed that the number of cyber attacks rose by more than 200 per cent after the pandemic, and on average the cost of cybercrime for financial services was 40 per cent higher than other industries, with the average cost of a data breach estimated at $5.9m compared to the global average of $4.45m.

The association also highlighted the disruption and, in some cases, “devastation” this can bring to people’s lives when their lifetime savings are at risk as a reason behind the TechSprint focus.

“Clients trust wealth managers with not just their money but also their hopes and life goals,” stated PIMFA WealthTech Advisory Council chair and Evelyn Partners group chief operations officer, Mayank Prakash.

“Securing client information in a world where many organisations have experienced a security breach is a daunting task with the pace and severity of cybercrime accelerating all the time.

“Business continuity and protection for both the organisation and their clients is paramount, which is why this TechSprint is important and valuable. We look forward to seeing the unique and innovative solutions that are presented as we lay this challenge out to the wider fintech community.”

PIMFA chief commercial officer, Richard Adler, added: “Wealth management and financial advice firms and their clients face a constant and growing threat of cyber attacks, including the ever-present danger of ransomware.

“These attacks are becoming increasingly sophisticated, posing severe risks to the trust between managers, advisers, and their clients.

“A single action could provide cybercriminals access that allows them to infiltrate a firm's systems, leading to an attack that could severely disrupt operations and impact clients lives which ultimately erode confidence across the sector.”

PIMFA WealthTech has invited fintech firms that meet the criteria and are able to demonstrate to wealth and investment managers how their solutions can aid firms in their cyber security efforts to register their interest by 1 October.

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