Post-Quantum Cyber Security Considerations for Financial and Banking Industry
Post-Quantum Cyber Security Considerations for Financial and Banking Industry
Executive Summary
With rapid advances in digital technologies, the landscape of cybersecurity is facing newer threats. While quantum computing promises transformative innovation, it also poses a structural risk to existing current key public cryptography standards that are the security foundation of current digital financial systems. As global bodies that standardize guidelines for financial institutions phase out existing vulnerable algorithms, financial institutions are faced with an urgent need to prepare for quantum-enabled future that include the rising risk of ‘harvest now, decrypt later’ attacks.
This exacts the Banking & Financial Services (BFSI) sector to focus beyond the realm of conventional Cybersecurity toward quantum resilience. There may arise challenges in preparedness gaps in strategic and technical migration, limited transition planning in ecosystem-wide coordination, and structural pain points in crypto-agile architecture while adapting to evolving standards that pivot to the need for accelerated action.
This study undertaken by Professor Manish Gangwar, Dr. Shruti Mantri and Avik Sarkar examines the quantum readiness of India’s BFSI sector through the stakeholder lens and sector-wide leadership survey. The authors propose a phased PQC migration framework to minimize disruption while strengthening long-term security. The study emphasizes quantum readiness to be broad level pririty that requires clarity, stakeholder collaboration, workforce upskilling and roadmaps to structured migration for a robust and ready financial system.
BFSI Leadership Study
Research based on insights from 118 CISOs & CTOs across India’s financial sector
Readiness Gap
Sector preparedness for post-quantum transition averages only 2.4/5
Imminent Quantum Risk
Future quantum computing capabilities could break today’s encryption
Migration Framework
The report proposes a practical, low-disruption roadmap to adopt quantum-safe cryptography
Urgent Coordination Needed
Government standards and industry collaboration are critical for a secure transition
Policy Recommendations
> Set a Clear PQC Timeline
To define and commit to a deadline-driven roadmap for adopting PQC that is in sync with National Institute of Standards and Technology (NIST) standards.
> Adopt a Hybrid Migration Model
To run current and PQC in parallel to ensure continuity and reduction in transition risk.
> Upgrade Quantum-Ready Key Management
To implement secure, quantum-resistant key generation, storage, and rotation practices.
> Enforce Vendor PQC Compliance
To integrate PQC requirements into vendor contracts, observation, and audits.
> Embed Quantum Risk in Enterprise Strategy
To prioritize training and post-quantum incident responses within overall risk governance.