With the rise in cybersecurity issues at banks, an article in American Banker suggests that the best incentive for lenders to strengthen their cyber defense is to preserve customer trust. 

The Financial Services Sector Coordinating Council is cited in the article saying incentives should be sufficiently significant to influence private investment, to reduce companies’ compliance costs and to minimize the risk of legal action.

“Financial services is built upon trust with our clients, trust between our firms and the trust to ensure the proper functioning of markets, the execution of transactions and the protection of information,” Charles Blauner, who chairs the FSSCC. “It is the cornerstone of everything we do.”