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  1. Analysis
January 22, 2022

Filings buzz in the payments sector: 25% increase in cybersecurity mentions since Q3 of 2020

GlobalData research tracks filings mentions of cybersecurity within the cards and payments sector

By Emil Filipov

Mentions of cybersecurity within the filings of companies in the payments sector were 25% higher in the third quarter of 2021 than in Q3 of 2020.

In total, the frequency of sentences related to cybersecurity between October 2020 and September 2021 was 125% higher than in 2016 when GlobalData, from whom our data for this article is taken, first began to track the key issues referred to in company filings.

When companies in the payments sector publish annual and quarterly reports, ESG reports and other filings, GlobalData analyses the text and identifies individual sentences that relate to disruptive forces facing companies in the coming years. Cybersecurity is one of these topics - companies that excel and invest in these areas are thought to be better prepared for the future business landscape and better equipped to survive unforeseen challenges.

To assess whether cybersecurity is featuring more in the summaries and strategies of companies in the payments sector, two measures were calculated. Firstly, we looked at the percentage of companies which have mentioned cybersecurity at least once in filings during the past twelve months - this was 90% compared to 80% in 2016. Secondly, we calculated the percentage of total analysed sentences that referred to cybersecurity.

Of the 50 biggest employers in the payments sector, Grupo Elektra SAB de CV was the company which referred to cybersecurity the most between October 2020 and September 2021. GlobalData identified 22 cybersecurity-related sentences in the Mexico-based company's filings - 1.7% of all sentences. Sberbank Rossii mentioned cybersecurity the second most - the issue was referred to in 1.3% of sentences in the company's filings. Other top employers with high cybersecurity mentions included Truist Financial Corp, American Express Co and Banco Santander SA.

Across all companies in the payments sector the filing published in the third quarter of 2021 which exhibited the greatest focus on cybersecurity came from Huntington Bancshares Inc. Of the document's 1,308 sentences, 40 (3.1%) referred to cybersecurity.

This analysis provides an approximate indication of which companies are focusing on cybersecurity and how important the issue is considered within the payments sector, but it also has limitations and should be interpreted carefully. For example, a company mentioning cybersecurity more regularly is not necessarily proof that they are utilising new techniques or prioritising the issue, nor does it indicate whether the company's ventures into cybersecurity have been successes or failures.

GlobalData also categorises cybersecurity mentions by a series of subthemes. Of these subthemes, the most commonly referred to topic in the third quarter of 2021 was 'data security', which made up 41% of all cybersecurity subtheme mentions by companies in the payments sector.

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