Data protection in performance assessment software in banking systems

In our world, data has obviously become the foundation of business success, and data security in evaluation software is crucial. Even the largest companies in the world keep reporting that hundreds of millions of customer records are leaked during cyber attacks. From the point of view of the law, this is a violation, which is why the importance of protecting confidential information is now so emphasized. 

We give our data and agree to their processing almost everywhere, from issuing discount cards in stores to more important and serious things that relate to financial and legal issues. That is why now, in order to avoid such disasters, companies must invest in reliable security protocols such as data encryption and two-factor authentication so next-gen banking software development is crucial.  By implementing these measures from the very beginning, companies will not only be able to comply with the rules but also gain the trust of their new customers.

Problems of personal data protection

In an increasingly digital world, the protection of personal data has become a serious problem for businesses. For example, in 2017, Equifax was subjected to a massive data leak, which compromised the personal data of 147 million people. The incident cost the company almost $700 million and seriously damaged its reputation. This case illustrates the critical importance of due diligence in protecting customer data. Companies should invest in robust security systems, train cybersecurity personnel, and implement transparent policies regarding data collection and processing.

Another prime example is Facebook, which was attacked during the Cambridge Analytica scandal in 2018 when millions of user profiles were used without their consent. This has led to a massive loss of trust among users and fines of millions of dollars. To avoid such situations, companies are advised to develop clear protocols to obtain user consent and implement data minimization methods. A study conducted in 2021 found that 79% of consumers are concerned about how their data is being used. Thus, an active approach to ensuring transparency and security is not only a legal obligation but also a business imperative.

Problems of cloud and digital transformation of physical security in banks

Physical security has always been a major concern for banks, which must protect their assets, employees, customers, and confidential data. However, as digital transformation affects all sectors and activities, banks are also constantly introducing new technologies and modern technological infrastructure to improve their physical security systems and combat threats. After all, if they do not do this, then all other industries will be at risk.

Among the current technological trends, there is one that nevertheless suffers from slower adoption: the cloud, which is hampered by the complexity of the subject and the highly sensitive nature of the data that banks collect and store. However, the cloud would be extremely useful for banks, especially in terms of physical security.

Digital transformation of the banking sector and the volume of security data

Digital transformation has profoundly changed the practice of physical security in banks. Technological advances have allowed the emergence of intelligent high-resolution video surveillance systems capable of analyzing video streams in real-time and warning in case of suspicious activity. Access control systems no longer use only traditional badges, but integrate biometric technologies (face recognition, fingerprints, iris scanners, etc.), mobile identifiers, etc. The use of IoT sensors also improves coordination between various security devices, providing more thorough and timely monitoring of banking facilities.

Although banks' ability to collect, process, and interpret this data allows them to optimize their physical security, identify suspicious patterns, take preventive measures, and increase their resilience to current and future threats, this poses a serious challenge. These new technologies actually generate a constant stream of data, a huge volume that, in addition to the need for analysis to obtain useful information, must be stored securely and in accordance with strict regulatory requirements of the industry.

The role of the cloud in physical security

This is where the cloud can play a role. This has really opened up new opportunities for physical security in banks, which can now store and analyze huge amounts of security data more efficiently thanks to a highly scalable cloud infrastructure. In addition, the cloud provides secure remote access to security information, facilitating the integration and centralized security control of bank branches.

However, the introduction of the cloud also raises privacy and data security issues, requiring robust security and encryption measures. This raises the question of a sovereign cloud, where sensitive data is stored and processed in cloud infrastructures managed by national organizations or local cloud service providers. By choosing a sovereign cloud, banks can ensure that their physical security data remains within national borders and is subject to local laws and regulations. This builds trust among customers and regulators, as it increases transparency about where data is stored and who has access to it. In addition, the sovereign cloud provides some resilience to cybersecurity risks, reducing dependence on foreign suppliers and providing more direct control over embedded security mechanisms.

Strict privacy and data protection rules

While all these advances offer opportunities for improvement, they also pose challenges in terms of privacy and security of sensitive data. Banks must carefully assess risks and implement robust security strategies to ensure data protection while simultaneously taking advantage of digital transformation and cloud centralization.

Conclusion

To keep pace with the digital transformation of the economy, it is important that banks continue to monitor technological developments and adapt their security strategies accordingly. If today we are talking about the cloud, then it is not a fact that tomorrow it will not be other trends such as artificial intelligence, self-learning or other things related to the Internet: all the achievements that can provide better threat detection, faster response to incidents and overall improved protection of banking assets, employees and customers. This will allow people to feel more secure, they will be easier to agree to the provision of services in such a sensitive area as the provision of financial services.