Cyber-security in New York City, the Financial Capital of the United States

NYC Accelerates the Development of a Cybersecurity Cluster to Protect the Financial Capital from Cyberattacks

By Uzi Scheffer, CEO of SOSA

New York City is the financial capital of the United States (and arguably the world) and the cybersecurity space in NYC is mostly populated by firms that are creating solutions for the financial services industry.

New York’s position as a financial capital makes the city especially vulnerable to cyber attacks. Although Manhattan is an established gateway for financial services and business in general, it’s still developing as a cyber hub. As hackers’ tools become increasingly sophisticated, it’s no secret that there’s room for improvement in cybersecurity in NYC.

To address this urgent need, the New York City Economic Development Corporation (NYCEDC) unveiled Cyber NYC, a huge initiative to transform NYC into a global leader in cybersecurity innovation and talent through collaborations with world-renowned partners in tech, academia, and finance. The city has invested $30 million into the initiative, which will accelerate and support the establishment of cybersecurity companies in the city, directly connecting them to NYC-based corporations and developing new talent pipelines to train the cyber workforce of the future.

A key element of Cyber NYC is the launch of a state-of-the-art Global Cyber Center. The NYCEDC selected SOSA to establish the Global Cyber Center to bring together an international community of corporations, investors, startups, and talent to foster collaboration and innovation in NYC’s growing cybersecurity ecosystem. The Center offers structured programming aimed at efficiently connecting the key stakeholders in this up and coming industry with the goal of creating jobs which are part of this new economy.

In 2019, the size of the global cybersecurity market is expected to reach $167 billion. According to the NYCEDC, cybersecurity is already a $1 billion-plus industry in New York, with more than 100 companies and 6,000 employees. In addition to the overall Cyber NYC initiative and the creation of the Global Cyber Center, here’s how Manhattan is going to catch up with world leaders in cybersecurity such as Israel and Singapore this year:

• Ongoing regulation will continue to significantly accelerate the development of the cybersecurity cluster in New York. New regulations demanding New York’s banks and financial services companies install specific cybersecurity technologies into their systems could represent opportunities for space. Proximity to financial institutions creates opportunities for fintech cybersecurity companies to develop targeted solutions that address the requirements issued by the New York Department of Financial Services.
• Cybersecurity jobs creation will begin in earnest this year, as Cyber NYC is expected to catalyze the growth of 10,000 good-paying cybersecurity jobs over the next decade as part of Mayor De Blasio’s New York Works jobs creation plan.
• Participation of leading financial institutions will grow as the security of the world’s largest players in finance face a constantly growing threat. Banking industry leaders will become more involved in the initiative to access cutting edge technologies in this space, and that will help grow the NYC cybersecurity industry: already, Chief Operational Risk Officer Phil Venables and Chief Information Security Officer Andy Ozment from Goldman Sachs have agreed to serve on Cyber NYC’s key advisory boards, lending their expertise to advise on the overall direction of the initiative. Top executives and decision-makers from many major financial institutions located in NYC are interested in exploring ways to partner with the initiative and to be part of this new, fast-growing ecosystem.
• Innovation hubs will emerge as decision-makers at large financial institutions and corporations increasingly feel the need to keep their fingers on the pulse of global innovation, and they will do so by interacting with talented individuals in the cyber industry. Leaders from large organizations and agile startups will learn from each other and partner to develop new products and services – there will be an increase in event programming and meetups for this purpose in 2019.
• A boom in cybersecurity startups serving finance – the number and size of such startups will increase as the city continues to attract technology-related companies; Amazon selecting Long Island City for HQ2 is a high-profile example. Notable cybersecurity startups currently serving the fintech sector, with headquarters or additional offices in New York, include BioCatch, specialized in behavioral biometric authentication; Illusive Networks, specialized in deception technology; and ThetaRay, which is developing specialized threat analysis and protection technology.