AI: The Financial Sector’s Newest Cybersecurity Ally

BHASKAR RAO,
CISO, THE BHARAT CO-OPERATIVE BANK (MUMBAI) LTD.

Cybersecurity is one of the most critical challenges in the financial sector, especially for banks that manage sensitive customer data and financial transactions. Banks implement multiple security measures such as protecting applications, securing data centers, and using micro-segmentation to defend their networks. However, cybersecurity is an ever-evolving field. As threats change daily, what worked yesterday may not be effective today. Financial institutions must continuously upgrade not just specific systems but their entire security infrastructure to stay ahead.

Resource disparities also affect how banks manage cybersecurity. While large banks can afford advanced technologies, smaller and cooperative banks often depend on third-party vendors, leaving potential security gaps. The shortage of skilled cybersecurity professionals further complicates the issue.

The role of the Chief Information Security Officer (CISO) is more demanding than ever. CISOs must ensure data protection, comply with regulations, and adapt to new threats—all while managing evolving technologies. Artificial Intelligence (AI) is becoming a key asset in this effort. AI can detect anomalies, consolidate threat data, generate reports, and respond to incidents faster than humans.

Far from being a threat, AI is increasingly seen as an essential tool to enhance cybersecurity. As it continues to advance, AI will play a vital role in making financial institutions more secure and resilient in a rapidly digitizing world.