IBM has a new mainframe system capable of running more than 12 billion encrypted transactions per day, according to CNBC.
The system, dubbed IBM Z, is designed to thwart cyberattacks on financial data and automate compliance processes using encryption. Until now, encryption has been difficult and expensive for companies to do at scale, according to Ross Mauri, general manager at IBM Z.
Data breaches could cost financial companies a total of $8 trillion by 2022, according to a report published by Juniper Research.
Given evolving cybersecurity threats, encryption has never been more popular. But despite the benefits, companies have balked at some of the drawbacks of implementing the technology, including costs, slower response times and complex processes. IBM believes making encryption easier to use will help.
Fintech is a growing focus for IBM. Last month, the company launched a Watson-powered software suite designed to help financial institutions manage regulatory and fiduciary responsibilities and make better-informed risk and compliance decisions.
Experts have long predicted that the financial services industry is ripe for disruption via automation. Managing risk and compliance currently costs banks 10% to 15% of their budgets, totaling an estimated $270 billion per year, according to McKinsey. Meanwhile, the lure of easy money makes the banking industry an appealing target for cyberattacks. With its new mainframe, IBM hopes to address both issues.