Cyber Security in Financial Sector Development: Challenges and Potential Solutions for Financial Inclusion
This paper assesses the relevance of cyber security for the development of inclusive financial systems in developing countries. The growing use of digital financial services and shared service platforms has increased the financial sector’s exposure to cyber risks. Financial service providers and their customers, regulators and supervisors are challenged with the increase in cyber threats – especially in emerging and developing countries with lower capacities and less resources.
The paper shares trends, challenges and examples of governments, industry initiatives and public-private partnerships that are taking steps towards addressing capacity and resource gaps in the sector. Based on the analysis and lessons drawn from existing examples, the authors provide suggestions for further research and experimentation aimed at identifying effective approaches for improving the sector’s resilience to and preparedness for cyber incidents.
This work was funded in whole or in part by CGAP. Unlike CGAP's official publications, it has not been peer reviewed or edited by CGAP, and any conclusions or viewpoints expressed are those of the authors, and they may or may not reflect the views of CGAP staff.