Why Invest in Cyber Security

John McNair

President & CEO Community Bankers Association of Georgia

In May of this year, Bank of America CEO Brian Moynihan said his institution spends approximately $1 billion per year on cyber security. Total revenue for B of A through for 12 months ending June 30, 2022, was reported to be $96.89 billion- meaning, B of A is investing nearly 1% of their total annual revenue into cyber security. So, if B of A is investing 1% of their gross annual revenue into cyber security, why aren’t community banks doing similar? This is an important question that needs to be asked during senior management meetings and in the Board rooms of community banks across the country.

In doing research for this column, I came across a good article from Picus Security titled “Key Threats and Cyber Risks Facing Financial Services and Banking Firms in 2022.” The article is filled with information and statistics, and I encourage you to consider all in terms of the needs of your company and institution. While the facts and figures are worthy of serious consideration, as a communitybased institution, there are a multitude of other risks to be considered as well. Perhaps none more important than the bank’s reputation and potential harm to the local customers and community it serves. A cyber attack on a local community bank could cause irreparable damage to the bank’s reputation for safety and security. Additionally, the impact on its customers could result in the loss of savings, mortgage foreclosure, loss of business and similar. Outside of the facts and figures, there is a real risk for those that we serve. ALL must be taken into consideration when discussing a proper cyber strategy with management and the Board.

As a community bank leader, you have much to consider on a daily basis- especially in this current business cycle; however, I do believe it is important to allocate funding for a long term and strategic cyber security plan. Should you need assistance, please let us know at CBA as we have a multitude of resources and partnerships to assist.