Cyber Resilience vs Customer Experience

Business Context

Financial institutions implement stronger authentication, transaction monitoring, fraud detection, session controls, and security verification to improve cyber resilience. Although these controls reduce cyber risk, they may also increase friction for customers using digital banking services.

Conflict

Increasing security improves resilience but may reduce usability. Simplifying customer interactions improves user experience but may weaken cybersecurity controls.

Regulatory Obligations

Protect critical digital services

Implement proportionate security controls

Monitor cyber threats continuously

Review security effectiveness

Improve resilience based on operational experience

Protect customer transactions

Business Risks

Customer dissatisfaction

Reduced digital adoption

Increased support costs

Compliance Risks

Weak cybersecurity controls

Operational resilience failures

Regulatory findings

Recommended Controls

Adopt adaptive security mechanisms that adjust authentication and verification according to transaction risk. User experience should be optimized without compromising protection for critical services or sensitive customer activities.

Evidence Required

Cybersecurity Policy

Customer Authentication Standards

Risk Assessments

Monitoring Reports

Security Review Records

Audit Questions

Are security controls proportionate to risk?

Are customer impacts evaluated?

Are authentication controls reviewed regularly?

Is operational resilience maintained?

Suggested Kpis

Customer authentication success rate

Number of cyber incidents affecting customers

Average customer authentication time

Number of resilience-related customer complaints