Banks Cybersecurity Spend
To understand the amount banks are spending on cybersecurity in order to make an appropriate sales pitch to investors and other banks.
As we dove into background research into the amount an average bank spends on cybersecurity each year, we gained the following insights:
- Banks and other financial service firms spend between $1,300 and $3,000 per full-time employee annually on cybersecurity service. according to a study by Deloitte.
- Banks spend between 0.2% and 0.9% of their revenue on cybersecurity annually.
- Banks in the US spend between 6% and 14% of their annual IT budget on cybersecurity annually.
- In 2018, JP Morgan Chase and HSBC spent about $750 million each on cybersecurity, while Citigroup and Bank of America spent about $600 million each.
- Wells Fargo spends about $250 million annually on cybersecurity.
- In general, Gartner estimate that the average annual security spending per employee increased from $584 in 2012 to $1,178 in 2018, with banks spending the most.
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Based on the findings from our preliminary research, we recommend dedicating additional research to find or estimate the average cybersecurity spend for community banks and regional banks in the US. Where data on the average spending for either community or regional banks is not directly available, we will estimate the average spending based on the average cybersecurity spending of about 5 banks in the group (community or regional banks).