London, February 6, 2025 – Research conducted by Optalysys reveals that UK financial services firms are experiencing growth limitations due to significant concerns over data security. A survey of over 250 IT decision-makers in the sector indicates that 70% believe their firm’s expansion is hindered by these mounting issues.
The survey, commissioned by Optalysys and carried out by Obsurvant, highlights that 39% of respondents are unable to collaborate with external organizations due to data security constraints, while nearly half (45%) face challenges in managing or accessing sensitive data within their own companies.
These findings emerge in the context of the UK government’s recently unveiled AI Action Plan, which aims to harness artificial intelligence to foster growth across industries. Additionally, the EU’s Digital Operational Resilience Act (DORA) has introduced new financial regulations, requiring firms to ensure resilience against ICT-related disruptions. However, only 33% of survey respondents feel fully prepared to meet DORA’s stringent requirements.
Despite the financial services sector’s substantial contribution of over £200 billion to the UK economy in 2023, 52% of respondents cite high costs associated with data security measures as the most significant challenge. Notably, 44% of organizations reported experiencing data breaches or unauthorized access, despite increased investments in data security.
Dr. Nick New, CEO of Optalysys, emphasized the impact of outdated data security approaches, stating, “The financial services sector is the lifeblood of the UK economy, yet businesses are being limited by outdated approaches to data security. This is a massive missed opportunity and it’s holding the entire sector back.” He called for the adoption of emerging privacy-enhancing technologies, such as Fully Homomorphic Encryption (FHE), to address these challenges.
Dr. New further noted that secure data processing technologies could transform collaboration across the financial sector, enabling organizations to communicate and work together without compromising sensitive customer and financial data.
As the UK government prioritizes economic growth, the findings from Optalysys underscore the urgent need for innovative solutions to enhance data security and facilitate collaboration within the financial services industry.
