Why is Cyber-Security important in the provision of financial technology?

European Banking Authority (<a href="/glossarycollection/european-banking-authority" style="color:#48277C;" target="_blank" title="European Banking Authority"><u>EBA</u></a>) guidelines around the Second Payment Services Directive (<a href="/glossarycollection/the-second-payment-services-directive" style="color:#48277C;" target="_blank" title="The Second Payment Services Directive"><u>PSD2</u></a>) place a direct obligation on financial technology providers to maintain effective cyber-security controls. Regulators can and do impose fines on companies who are judged to have fallen short of the required standards. Aside from the reputational damage, being on the receiving end of such fines can represent an existential threat to the business involved. It is crucial that financial technology providers take the threat of cyber attack seriously and build an effective cyber-security element into their operating model.