ASSESSING THE INFLUENCE OF CYBERSECURITY THREATS AND RISKS ON THE ADOPTION AND GROWTH OF DIGITAL BANKING: A SYSTEMATIC LITERATURE REVIEW

Abstract

The rapid digitalization of banking services has significantly transformed financial transactions, offering enhanced convenience and efficiency for consumers. However, the increasing reliance on digital banking has also exposed financial institutions and users to a wide range of cybersecurity threats, including phishing, malware, ransomware, data breaches, and unauthorized access. This study systematically examines the influence of cybersecurity threats on digital banking security, adoption, and regulatory compliance by conducting a comprehensive review of 78 peer-reviewed articles published between 2015 and 2024. Using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, this research critically evaluates the most prevalent cyber threats targeting digital banking platforms, the effectiveness of modern security measures, and the role of regulatory frameworks in mitigating financial cybersecurity risks. The findings reveal that phishing and malware attacks remain the most commonly exploited cyber threats, leading to significant financial losses and consumer distrust. Multi-factor authentication (MFA) and biometric security have been widely adopted to combat unauthorized access, while AI-driven fraud detection and blockchain technology offer promising solutions for securing financial transactions. However, the integration of third-party FinTech solutions introduces additional security risks, necessitating stringent regulatory oversight and cybersecurity protocols. The study also highlights that compliance with global cybersecurity regulations, such as GDPR, PSD2, and GLBA, enhances digital banking security by enforcing strict authentication measures, encryption protocols, and real-time fraud monitoring. Despite these advancements, financial institutions face ongoing challenges in balancing security, usability, and regulatory compliance, which impact consumer trust and digital banking adoption. The review underscores the need for a multi-layered security strategy that integrates encryption, AI-driven fraud prevention, blockchain security, and robust regulatory frameworks to ensure the long-term resilience of digital banking. This study contributes to the growing body of knowledge on financial cybersecurity, offering insights into emerging threats, risk mitigation strategies, and policy recommendations for securing digital financial ecosystems.