July 18, 2017 | Written by: Ian Hurst
Categorized: Banking | IBM RegTech Innovations | Security
Share this post:
In 2016, more than 4 billion data records were stolen or lost, a 556% increase over 2015. Over the past few five years alone, 9 billion records have been breached. Of these records, only 4 percent of have been encrypted. Although cloud data centers have been on the rise, little to no progress has been made so that data is fully encrypted at any scale.
The fact is, encryption at scale is both difficult and expensive. Even for banks highly focused on security and regulatory compliance mandates, important data continues to be vulnerable to external and internal attackers. This is becoming increasingly costly for banks – in 2016, 24 percent of breaches affected financial institutions and cost them an average of $245 million.
That’s why many of our banking clients turned to IBM asking for a better way to deliver data protection, security, transparency and greater value in every interaction and transaction. Because of this, we’re unveiling IBM z, the biggest re-invention and expansion of our mainframe technology to date.
With a 400% increase in silicon dedicated to cryptographic algorithms and reworking of its software stack, IBM z is the first system capable of encrypting all a bank’s data — all the time. Until now, companies have had to choose which data they wanted to encrypt. With IBM z, 100% encryption becomes the standard so key data from internal and external threats is protected without disruption to applications, clients, and SLAs.
This massive leap in technology will usher in a new era in which we believe the industry will move from selective encryption to pervasive encryption. No longer will organizations only strive to meet the minimum thresholds for encryption, pervasive encryption will become the new standard. This will help reduce risk from sensitive data, make it more difficult for hackers to identify sensitive data, protect all digital assets and reduce the cost of compliance.
Encrypting volumes of data in one click is a massive breakthrough for consumer data and the industry alike. With this major upgrade to our mainframe technology, only IBM can offer unrivaled data protection to power the world’s financial system.
Ian Hurst, Regional Managing Director, Banking and Financial Markets