Top 3 reasons why Regions Bank cyber attack provides new opportunity for venture capitalists
Regions Bank was attacked Friday, leading customers confused and worried. Clearly, security for banks still has plenty of room for improvement. Therein lies the opportunity for venture capitalists.
In a BankInfo Security article, Alberto Yépez of Trident Capital discussed the role of venture capital in security.
First, we are in a "perfect storm" that sees a technology shift to four major platforms. These are social media, mobility, the cloud, and virtualization.
Thus, this is an ideal time to invest in information security start-ups. "These four shifts are creating new threat vectors, new vulnerabilities," said Yépez.
Second, these four major platforms created greater sensitivity to data security and privacy from both corporations and the government. It also meant that the government will have to heighten its regulatory scrutiny especially in the banking sector.
Third, there was a lack in innovation security-wise. "We also see the large corporations that were the innovators in security ... have [lately] not done much in innovation. Therefore, investing in security - the role of venture capital - is creating these new companies that eventually are going to help solve the problems we're facing as a nation, as businesses and as individuals," Yépez said.
The findings of Gartner, Inc., an information technology research and advisory company, supported Yépez's statements. According to Gartner, the security technology market was expected to reach US$67.2 billion this year. This represented an 8.7% increase from 2012's US$61.8 billion. In 2016, the market was expected to grow to more than US$86 billion, added Gartner.