Zero Trust: A Paradigm Shift in Banking Cybersecurity

Abstract

Rise in more advanced and frequent cyber threats are occurring in the banking sector than in any other sector, and therefore, sufficiency has to be achieved through conventional security para-digms. This paper aims to propose the necessity of adopting the zero-trust for cybersecurity in banking. Zero Trust is a concept that is different from the traditional perimeter security approach, whereby a user and eve device are required to prove its trustworthiness to access resources within or outside a network. This paper will view the important consequences of cybersecurity threats to the banking industry in terms of financial losses, reputational damage, and regulatory penalties. This will help banking institutions enhance their security stature through constant authentication, strict access controls, and strong monitoring mechanisms. The paper has highlighted some of the key strategies in implementing Zero Trust through network segmentation, multi-factor authentica-tion, and how advanced analytics can be used to accomplish this goal. It provides examples in the form of use cases and successful Zero Trust implementation examples already in practice within the banking industry, highlighting real accrued benefit from this approach. It finally discusses the scope and future trends of Zero Trust in banking cybersecurity, arguing that this model is not essentially a current imperative but lays down the foundational strategy for future-proofing the financial institution against any evolving cyber threats. This would be com-prehensive research to provide directions that must be able to guide the banks in their pursuit to transition into a zero-trust architecture for enhanced security and resilience against rising cyber threats.