Trends in Business Continuity & Disaster Recovery for Financial Services Firms

The financial services sector is increasingly prioritising business continuity and disaster recovery (BCDR) due to the growing complexity of threats and the critical need to maintain operational resilience in regulated markets.

According to a 2024 survey by the Business Continuity Institute, 85% of financial services firms reported having a dedicated BCDR team, and 78% had conducted a full-scale BCDR exercise in the past year. Here are some of the latest trends:

1 - An Emphasis on Cybersecurity

With cyberattacks becoming more frequent and sophisticated, financial institutions are investing heavily in cybersecurity measures. This includes advanced threat detection systems, regular security audits and enhanced employee training programs to mitigate these growing risks.

2 - A Uptick in the use of Cloud-Based Solutions

Cloud computing is becoming a preferred choice for disaster recovery due to its scalability, cost-effectiveness and flexibility. A 2025 survey by KPMG found that 90% of financial institutions had adopted cloud-based disaster recovery solutions, highlighting the growing trend towards cloud adoption. Financial firms are also leveraging cloud-based backup and recovery solutions to ensure data availability and business continuity.

3 - Increased usage of Automation and AI

Automation and artificial intelligence (AI) are being integrated into BCDR strategies to enhance efficiency and reduce human error. Automated processes for data backup, recovery and testing are helping firms respond more quickly to disruptions. The primary drivers include the increasing frequency of cyberattacks, the need for regulatory compliance, technological advancements and the competitive advantage of maintaining uninterrupted services.

4 - Regulatory Compliance

Increased regulation is driving the adoption of robust BCDR practices. Financial institutions must comply with various regulatory requirements to ensure operational resilience and data protection requirements are met. These requirements mandate robust governance arrangements, including effective processes for managing risks, ensuring business continuity and reporting to regulators on any breaches.

5 - Focus on Operational Resilience

In the UK, regulation is shaping some BCDR practices with the Financial Conduct Authority (FCA) and Prudential Regulatory Authority (PRA) Operational Resilience Rules. These rules require firms to identify important business services, set impact tolerances, and ensure they can continue to operate within them. These frameworks emphasise the importance of maintaining critical services during disruptions and, whilst not the same, involves regular testing and overlap with organisational BCDR plans. Operational resilience is about the ability to prevent, adapt to, respond to, and recover from disruptions. Financial firms are developing comprehensive plans to maintain important business services during crises, in conjunction with their wider Business Continuity strategy.

The financial services sector is rapidly evolving its BCDR strategies in response to emerging threats and increasing regulatory requirements, so this is expected to remain an area of focus over the next couple of years.