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How data security is holding British businesses back - and how to solve it
How data security is holding British businesses back - and how to solve it
Research from Optalysys highlights that concerns over data security are restricting growth in the UK financial services sector. A survey of over 250 IT decision-makers (ITDMs) in financial services, conducted by Obsurvant and commissioned by Optalysys, found that 70% believe their firm’s growth is being hindered by mounting security challenges.
The survey also revealed that 39% of respondents struggle to collaborate with external organisations due to security constraints, while 45% face difficulties managing or accessing sensitive data within their own firms.
These findings coincide with the government's launch of its AI Action Plan, which aims to drive growth through AI adoption, and the implementation of new financial regulations, including the EU’s Digital Operational Resilience Act (DORA). DORA requires financial institutions to strengthen their resilience against ICT-related disruptions. However, Optalysys research found that only 33% of organisations feel fully prepared to meet these stringent requirements.
The financial services industry contributes over £200 billion to the UK economy, making it the country’s fourth-largest sector. Yet, the high costs associated with data security measures remain a significant challenge, cited by 52% of survey respondents.
Dr. Nick New, CEO of Optalysys, emphasised the sector’s struggle, stating: “The financial services sector is the lifeblood of the UK economy, yet businesses are being limited by outdated approaches to data security. Simply put, they can’t harness the real power of AI or unlock the full value of their data because they are too focused on keeping it safe. This is a massive missed opportunity, holding the entire sector back.”
“To alleviate data security concerns—especially when dealing with sensitive customer and financial information—we need technology that allows encrypted data to be processed without decryption,” Dr. New explained. “This will enable secure and efficient collaboration across the financial sector, transforming how businesses approach data security and innovation.”
With economic growth high on the government’s agenda, the UK has an opportunity to lead by leveraging technology to drive expansion across key industries like financial services. Optalysys’ research highlights the need for privacy-enhancing technologies such as Fully Homomorphic Encryption (FHE) to address these ongoing' concerns.
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