Cybersecurity Risk and Financial Resilience in the Digital Banking Ecosystem

Abstract

The rapid expansion of digital banking has significantly enhanced the efficiency, accessibility, and customer experience of financial services. However, this transformation has simultaneously introduced increasingly complex cybersecurity risks that threaten institutional stability and economic resilience. This study employs a Systematic Literature Review to synthesize existing research on the relationship between cybersecurity vulnerabilities and the strength of digital banking institutions. The findings show that sophisticated cyberattacks such as data breaches, phishing, malware, and distributed denial of service assaults have become major sources of systemic risk due to growing digital interconnectedness and reliance on third-party technology providers. The review further demonstrates that financial resilience depends heavily on robust cybersecurity governance, including real-time threat monitoring, adaptive risk-management frameworks, and continuous system auditing. Additionally, technological developments such as cloud computing, open banking, and fintech integration expand the cyber risk surface, requiring more advanced and collaborative security strategies. Overall, the study highlights that strong cybersecurity governance is essential to maintaining institutional stability, preventing contagion effects, and safeguarding trust in the digital financial ecosystem.