2024 IT Budgeting Guide: Where to Allocate Your Bank’s Resources

bank employees discussing IT budgeting for the new year

Technology changes so quickly—what will be worth investing in just a year from now? Rather than trying to predict the future, we’ll focus on what’s relevant and important today.

By allocating your bank’s resources efficiently, you can better protect against cyber threats and ensure your operations run smoothly. In this guide, our banking security experts break down the key areas where your IT budget should be directed in 2024.

What Should Get Your Attention This Year? 4 Areas of Your IT Budget That Will Give You a Return on Investment

A few small changes in your IT budget for 2024 can save you from a much larger headache and financial loss down the line.

1. Multi-Factor Authentication (MFA): Enhancing Security Without Compromising Experience

MFA—everyone’s (least) favorite security topic. But, contrary to common misconceptions, MFA doesn’t have to be a cumbersome process; it can be seamlessly integrated into user experiences.

For instance, adopting biometric authentication—like fingerprint, facial recognition, or iris scans—augments security while enhancing user convenience. Banks can implement MFA across various touchpoints, such as online banking platforms and mobile apps, fortifying security without impeding customer usability.

Furthermore, MFA isn’t solely limited to user-facing interfaces. Implementing MFA across internal systems, privileged access, and administrative controls strengthens the overall security posture of the bank.

Combining password-based authentication with hardware tokens or one-time passcodes ensures multifaceted protection against unauthorized access. We know that people don’t like entering a code or confirming through an app. But in the few seconds it takes for you to confirm your identity, you stop attacks that could cost you thousands, even millions.

2. Cybersecurity: Leveraging XDR and EDR for Comprehensive Threat Management

Cybersecurity continues to evolve, demanding proactive measures to combat sophisticated threats. Extended Detection and Response (XDR) and Endpoint Detection and Response (EDR) solutions redefine threat detection and mitigation within banking IT infrastructure.

Unlike traditional Security Information and Event Management (SIEM) tools, XDR and EDR amalgamate data from diverse sources. For banks, the real-time monitoring capabilities of XDR and EDR are crucial. 

These solutions not only detect anomalies but carry out automated responses, such as isolating compromised endpoints to prevent ransomware from spreading. Their capability to interconnect data spanning various networks, endpoints, and cloud infrastructures empowers banks with a holistic view of potential threats.

This comprehensive insight enables proactive measures against emerging cyber risks specifically targeting the financial sector. These risks include phishing attempts aimed at compromising customer data or sophisticated malware designed to breach transactional security protocols.

3. Cloud Integration: Driving Scalability and Resilience

Investing in cloud technology revolutionizes how banks operate behind the scenes. Imagine it like upgrading your toolbox to adapt to changing needs and unforeseen challenges. 

By using cloud services, banks can adjust their resources easily, like adding more staff during busy times and reducing numbers when things quiet down. This helps save money and keeps operations running smoothly.

Besides, the cloud acts as a safety net. If something goes wrong, like a power outage or a glitch, having important banking services stored in the cloud ensures they stay available. It’s a vital part of your business continuity plans—without your physical servers, you can’t help customers. The cloud lets you do work from anywhere and at any time.

4. Data Analytics: Unveiling Insights for Informed Decision-Making

Strategic investment in data analytics empowers banks to uncover valuable insights hidden within their vast reservoirs of data. Utilizing sophisticated analytics tools like predictive modeling, machine learning algorithms, and natural language processing (NLP) equips banks to extract actionable intelligence.

For example, by scrutinizing customer transaction patterns, banks proactively identify irregularities that could signal fraudulent activities. This proactive approach not only safeguards against financial losses but also nurtures and upholds customer trust, reinforcing the integrity of the banking relationship.

Build a Future–Proof IT Budget With RESULTS Technology

Budgeting for IT security can be overwhelming, but not doing so will leave your bank exposed to cyber threats and vulnerable to operational disruptions. At RESULTS Technology, we understand the unique challenges of balancing budgets in the banking industry.

Our team of experts is here to help you make informed decisions and allocate resources strategically, ensuring that your bank stays secure and meets compliance requirements. Schedule a consultation with us today to build a future-proof IT budget that supports your bank’s growth and resilience.