Applying cybersecurity systems in a banking company can be the ideal solution to avoid attacks and customer data leaks, but when implementing it, care must be taken to comply with regional laws and thus follow financial data security regulations.
In today’s world where technology is king, we must be aware of the digital footprint we are leaving behind. This is why information security in financial services is not an aspect that should be neglected.
Now does following security regulations really matter? There is great risk in not doing so. IBM spoke about this in a study revealing that in the BFSI sector (Banking, Financial Services, and Insurance), the average cost of a data breach in 2024 rose to $6 billion per incident, a figure that exceeds the global average.
This makes it very clear: not having a cybersecurity system that follows regulations will mean a huge expense for the company that could lead to its definitive closure and, in addition, facing other legal problems.
Current regulatory landscape: key mandatory frameworks
In the financial environment there are multiple regulations that must be met to ensure protection against cybercrime and data security:
- PCI-DSS: Essential standard for entities that process, store, or transmit cardholder data. Non-compliance can lead to the loss of licenses to operate with cards and heavy fines.
- SWIFT CSP: Mandatory security program for institutions using the SWIFT network, ensuring their defenses are kept updated against cyberattacks.
- GLBA (Gramm-Leach-Bliley Act): U.S. law that requires transparency about data policies, allows users to opt-out of data sharing, and mandates robust security programs.
- NYDFS NYCRR 500: Cybersecurity regulation from the New York Department of Financial Services, applicable to numerous financial institutions, with requirements for protection and incident response.
- DORA (EU): As of early 2025, the Digital Operational Resilience Act imposes five strategic pillars: ICT risk management, incident reporting, resilience testing, third-party risk, and multinational coordination.
- NIS2 (EU): Directive effective since January 2023, consolidated into member states’ legislation as of October 2024. It requires multi-factor authentication, vulnerability audits, and supply chain risk management.
- MiCA, DORA and DAC8 (EU crypto): MiCA came into effect in December 2024, imposing licensing, transparency, and prudential limits; DORA already mentioned; DAC8 regulates the automatic exchange of crypto-asset information to improve fiscal transparency in 2025.
- Section 1033 of the Dodd-Frank Act (U.S.): In October 2024, the CFPB finalized rules granting access rights to personal financial data, including strong security requirements.
How can Rootstack help?
In our team, it is not uncommon to carry out our development and technology processes under legislative guidelines, especially when working with the banking industry. We have the ability to anticipate any changes in the law and adapt to them, making us an ideal partner.
In addition, we work with continuous training and secure coding practices. This reduces vulnerabilities from the early stages of the development lifecycle, strengthening the system and meeting legal requirements.
Implementing financial data security regulations should not be seen as a burden, but rather as the foundation of a safe, efficient, and innovative technological partnership. At Rootstack, we turn this necessity into a competitive advantage for your company. We help you prove to your clients and stakeholders that you can operate with responsibility, trust, and innovation.
Ready to take the next step? Contact us and let’s make sure your future platform not only complies with financial services compliance regulations but also becomes a benchmark in information security and resilience.
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