Influencing Factors: Regulatory Impact and Cybersecurity and Data Privacy Regulations
The financial services sector is undergoing a substantial paradigm shift, driven by the unprecedented impact of the COVID-19 pandemic. As digitization continues to gain prominence in the financial affairs of an expanding global populace, electronic payment systems have emerged as the focal point of this transformative process.
Cashless transactions are progressively gaining prevalence, and facilitating inclusive financial practices has assumed a paramount importance within the industry. Moreover, payments are instrumental in fostering the growth of digital economies and catalyzing innovation, all while serving as a resilient foundation for our economic frameworks.
Global Statistical Inference
- Global cashless payment volumes have seen a significant increase of 42%.
- Payments account for 90% of the valuable customer data collected by banks.
- The majority (86%) believe that traditional payment providers will join forces with FinTech's and technology companies to drive innovation.
- A majority (89%) anticipate a continued rise in e-commerce, contributing to the shift in payment methods.
- 42% strongly believe that there will be an accelerated growth in cross-border, cross-currency instant payments and business-to-business (B2B) payments.
Statistical Inference: Regulatory Impact and Cybersecurity and Data Privacy Regulations
Which areas of regulation are causing you the most concern when considering the potential impacts of regulatory changes over the next 5 years?
PriceWaterHouse’s findings reveal fascinating insights into the future of payments in 2025, and they are:
- Data privacy and cybersecurity: 39% of respondents expressed concern or interest in this topic.
- Open Banking: 30% of respondents showed interest in or acknowledged the relevance of Open Banking.
- Central Bank Digital Currency (CBDC): 30% of respondents demonstrated interest or awareness of CBDCs.
- Environment and climate (e.g. ESG): 30% of respondents expressed interest in or recognized the importance of environmental and climate-related factors (e.g., ESG).
- Use of new technology: 26% of respondents indicated interest or curiosity in exploring the use of new technologies.
- KYC (Know Your Customer): 23% of respondents acknowledged the significance or relevance of KYC procedures.
- Local regulatory pressures - different regulations in different regions: 26% of respondents highlighted the impact or challenges posed by varying regulations across different regions.
- Customer communication: 26% of respondents emphasized the importance or value of effective customer communication.
- E-money/Cryptocurrency: 22% of respondents demonstrated interest or curiosity in e-money or cryptocurrencies.
- Enhanced accountability: 17% of respondents expressed a desire or recognized the importance of increased accountability.
- New business model (crowdfunding, peer-to-peer lending): 11% of respondents showed interest or curiosity in exploring new business models such as crowdfunding or peer-to-peer lending.
- AML (Anti Money Laundering): 13% of respondents acknowledged the significance or relevance of anti-money laundering measures.
- Digital identity authentication: 13% of respondents expressed interest or recognized the importance of digital identity authentication.
- Don't know: 0% of respondents indicated uncertainty or lack of knowledge on the subject.
- Other (please specify): 0% of respondents provided additional responses beyond the options listed.
PwC’s findings provide a valuable insight into the key factors that will shape the future of payments, offering a glimpse into the evolving landscape of financial services.
Cybersecurity and Data Privacy Regulations
In the next 5 years, which of these factors will have the most significant influence on shaping your cybersecurity strategy?
Here are the statistics on factors influencing cybersecurity strategy, rephrased for clarity:
- Regulations addressing cybersecurity and data privacy: 48% of respondents expressed awareness or support for regulations pertaining to cybersecurity and data privacy.
- Escalating complexity of cyber threats: 36% of respondents acknowledged the increasing intricacy of cyber threats.
- Implementation of novel authentication technologies, such as biometrics: 30% of respondents showed interest or recognition of the introduction of new authentication technologies like biometrics.
- Human vulnerabilities (unintentional or malicious): 25% of respondents emphasized the significance of human vulnerabilities, whether unintentional or malicious.
- Heightened public concern regarding data privacy: 24% of respondents expressed growing public apprehension regarding data privacy matters.
- Shortage of cybersecurity professionals: 26% of respondents recognized the shortage of skilled cybersecurity professionals.
- Introduction of fifth-generation (5G) cellular networks: 26% of respondents expressed interest or awareness of the implementation of fifth-generation (5G) cellular networks.
- Adoption of Internet of Things (IoT) hardware and software: 26% of respondents acknowledged the adoption of Internet of Things (IoT) hardware and software.
- Escalating geopolitical tensions: 26% of respondents highlighted the rising tensions in global politics.
- Vulnerabilities in supply chains and business partners: 17% of respondents emphasized the vulnerabilities present in supply chains and business partners.
- Don't know: 0% of respondents indicated uncertainty or lack of knowledge on the subject.
- Other (please specify): 0% of respondents provided additional responses beyond the options listed.
These statistics provide valuable insights into the key factors that organizations must consider when shaping their cybersecurity strategies in the coming years.
