DORA Compliance for FinTech: Insights from Our Latest FinTech North Article

At Cyber Alchemy, we’re committed to empowering the FinTech community with the knowledge and tools necessary to navigate the evolving regulatory landscape. In collaboration with FinTech North, we’ve contributed an in-depth article titled “DORA Compliance: A FinTech Survival Guide,” offering crucial insights into the Digital Operational Resilience Act (DORA) and its implications for FinTech firms. Here are some of the highlights;

Understanding DORA’s Impact on FinTech

DORA is set to transform how financial services firms manage cybersecurity and operational risks. It introduces stringent requirements for IT risk management, incident reporting, and third-party risk oversight. Notably, even UK FinTech firms without direct EU operations may be indirectly affected through their supply chains, especially if they utilise US-based ICT providers like AWS or Azure that serve EU financial institutions.

Key Pillars of DORA

The regulation is built on five key pillars:

• ICT Risk Management: Establishing a comprehensive framework to detect, prevent, and mitigate cyber risks.
• Incident Reporting: Defining and reporting major incidents within specified timeframes.
• Digital Resilience Testing: Conducting regular testing, from vulnerability assessments to penetration tests.
• Third-Party Risk Management: Ensuring comprehensive oversight and contractual clarity with vendors.
• Information Sharing: Collaborating and sharing threat intelligence to enhance cybersecurity.

Common Challenges in Achieving Compliance

FinTech firms may encounter several challenges in meeting DORA’s requirements, including:

• Incident Reporting: Implementing structured frameworks to classify and report major incidents promptly.
• Testing Requirements: Understanding the appropriate level of resilience testing needed to avoid unnecessary expenses.
• Third-Party Risk Management: Ensuring vendor contracts include DORA compliance clauses, such as immediate incident notifications and audit rights.
• Geographical Considerations: Recognising that UK-based FinTechs operating in EU markets or servicing clients regulated under DORA must comply, despite Brexit.

Strategic Steps Toward Compliance

To navigate these challenges, FinTech firms should:

• Develop Robust Incident Management Frameworks: To ensure timely detection and reporting of incidents.
• Align Testing Practices with Risk Profiles: Conduct appropriate levels of resilience testing based on the firm’s size and risk exposure.
• Strengthen Vendor Management: Review and update contracts to incorporate DORA compliance requirements.
• Stay Informed on Regulatory Developments: Keep abreast of both EU and UK regulatory landscapes to ensure ongoing compliance.

For a comprehensive exploration of DORA and practical guidance on achieving compliance, we invite you to read the full article on FinTech North’s website: citeturn0search0

At Cyber Alchemy, we understand the complexities of regulatory compliance and are here to assist your organisation in navigating DORA’s requirements effectively. Our expertise ensures that your business remains resilient, compliant, and poised for growth in the dynamic FinTech landscape.