One of the most significant security challenges faced by the banking industry is the protection of customer data. Banks must comply with strict data protection regulations such as the Gramm-Leach-Bliley Act (GLBA) and the European Union's General Data Protection Regulation (GDPR) to ensure the confidentiality, integrity, and availability of customer data. To comply with these regulations, banks must implement strict access controls, encryption, and multi-factor authentication to protect against data breaches.

Another challenge faced by the banking industry is the protection of financial transactions. Banks must comply with strict regulations such as the Federal Financial Institutions Examination Council (FFIEC) to ensure the integrity of financial transactions. To comply with these regulations, banks must implement strict access controls, encryption, and multi-factor authentication to protect against fraud and unauthorized access to financial data.