Financial institutions worldwide are under mounting pressure to strengthen cybersecurity measures as new regulations aim to curb rising threats. In the United States, the Securities and Exchange Commission (SEC) has introduced new rules requiring financial firms to disclose cyber incidents and outline their risk management strategies. The European Union's Digital Operational Resilience Act (DORA) is set to enforce stricter security standards for banks, insurance companies, and investment firms.
These regulations come in response to growing concerns about supply chain attacks, a primary vector for cybercriminals targeting financial institutions. The 2023 IBM Cost of a Data Breach Report found that the financial sector ranks among the most expensive industries for cyberattacks, with an average cost of $5.9 million per breach. Meanwhile, research from the European Central Bank warns that 43% of financial cyber incidents now stem from vulnerabilities in software supply chains.
As compliance requirements expand, financial firms must implement continuous software security measures rather than rely on periodic audits or one-time assessments.
New Compliance Mandates Require Transparency in Software Development
Regulatory bodies are increasingly focused on the integrity of financial institutions' software supply chains. New mandates require firms to prove that the software they use—whether developed in-house or procured from third-party vendors—meets strict security standards.
- Executive Order 14028 (U.S.): Issued in response to major cyberattacks such as SolarWinds, this order mandates that financial institutions and software vendors provide verifiable attestations of their security practices.
- Digital Operational Resilience Act (EU): DORA requires financial firms to demonstrate cybersecurity preparedness, conduct regular stress tests, and ensure supply chain security.
- Basel Committee Cyber Resilience Framework: Global banking regulators now emphasize proactive threat mitigation in software security to prevent systemic financial disruptions.
Financial institutions face increasing pressure to generate machine-readable attestations that validate secure development practices. This shift aims to move beyond self-reported compliance claims, requiring cryptographic proof of software integrity.
Scribe Security's Role in Compliance-Driven Cybersecurity
Scribe Security provides a software supply chain security platform that enables financial institutions to meet emerging compliance requirements while maintaining operational efficiency. The platform integrates real-time attestation-based verification to ensure that software is developed and deployed securely.
One key element of compliance is the Software Bill of Materials (SBOM), which regulators increasingly require for transparency into third-party software components. Scribe Security automates the creation, verification, and management of SBOMs, allowing financial firms to track and mitigate risks in their software supply chain.
"Regulators now expect financial institutions to prove—at a technical level—that their software supply chains are secure," says Rubi Arbel, CEO of Scribe Security. "This is no longer just about documentation; it's about demonstrating security through cryptographic evidence."
Preventing Software Tampering and Securing Code Provenance
Financial institutions often rely on a complex web of third-party software, including open-source components and cloud-based applications. This complexity increases the risk of supply chain attacks, where cybercriminals inject malicious code into trusted software updates.
A notable example is the SolarWinds attack, which compromised multiple government agencies and financial firms. In response to the SolarWinds attack and the exponential increase in attacks since then, regulators now require organizations to implement zero-trust architectures, digital code signing, and continuous integrity verification to prevent unauthorized modifications.
Scribe Security addresses this risk by embedding automated security controls directly into the software development lifecycle (SDLC). The platform provides:
- Continuous code signing and provenance verification to prevent tampering in software builds.
- Automated policy enforcement to block non-compliant software from entering production.
- Real-time compliance monitoring to detect vulnerabilities and misconfigurations before they escalate.
"When a security breach occurs, financial institutions must provide regulators with clear, verifiable proof of what went wrong and what measures were in place," Arbel explains. "Scribe enables them to generate audit-ready security attestations in real-time."
Bridging the Gap Between Security and Software Development
One of the biggest compliance challenges for financial firms is aligning security teams with software developers. Historically, security compliance has been seen as a bottleneck, often conflicting with agile development cycles.
Scribe Security integrates policy-as-code functionality, allowing financial institutions to automate security controls without slowing down software releases. Key benefits include:
- Centralized compliance management, integrating real-time security monitoring across financial services' IT ecosystems.
- Automated enforcement of security best practices, reducing the need for manual compliance reviews.
- Integration with CI/CD pipelines, ensuring that security requirements evolve alongside software development processes.
By embedding security into the development workflow, financial institutions can streamline compliance efforts while maintaining innovation and speed.
A Future-Ready Security Strategy for Financial Services
The future of financial cybersecurity is shifting toward continuous compliance verification. Regulations such as the Cyber Resilience Act (EU) and U.S. Cyber Incident Reporting for Critical Infrastructure Act (CIRCIA) will introduce even stricter mandates in the coming years.
The Basel Committee on Banking Supervision (BCBS) has also indicated that cyber resilience measures will become a core requirement for financial institutions worldwide by 2030.
Arbel highlights the importance of adopting evidence-based security: "Financial firms that embrace continuous attestation today will be in a much stronger position as regulatory requirements become even more stringent."
Financial institutions can stay ahead of evolving regulations by integrating real-time verification, policy-driven security enforcement, and software supply chain transparency while reducing the risk of costly breaches.
