Cyber Risk and Technology Dependence in Global Banking Sector

During the SBI Banking Conclave, Jain stated that technology architecture has become the risk architecture for banks. He noted that financial institutions are increasingly reliant on interconnected technology infrastructure, including core banking systems, APIs, cloud environments, and software providers. This dependence means that technology risk must be treated as a primary enterprise risk, comparable to balance-sheet risks.

A vulnerability in a fintech, software provider, or shared cloud environment can affect more than one institution. Outages caused by cyberattacks or technology failures, such as those seen in 2024, can escalate into significant financial risks.