• Roger Alexander , Advisor at Chargebacks911


• 18.04.2025 09:30 am
#DORA #DigitalOperationalResilience

Two years after its adoption, the Digital Operational Resilience Act (DORA) has officially come into force across the European Union, ushering in a landmark effort to fortify the financial sector’s digital infrastructure. The regulation targets real-world vulnerabilities that threaten the continuity of financial services. Its aim is simple: minimise disruption and safeguard the economy from digital system failures.

Who’s in Scope?

DORA applies to "Critical ICT Third Party Providers,"  fintech apps, even crypto platforms, and tech vendors whose services are vital to financial operations from core banking systems to cloud providers. 

However, what qualifies as “critical” isn’t always clear, so financial institutions must reassess their vendors' risk exposure and compliance status. For example, a platform’s core payment processing software is undoubtedly critical, but what about a budgeting app integrated into a bank’s Open Banking ecosystem? Such tools may not be central to operations but still form an essential part of the customer experience and trust. This ambiguity means financial institutions will need to carefully evaluate their vendors’ ability to be compliant. 

DORA sets out strict standards for incident reporting, resilience testing, and service continuity. All entities must now use a unified framework to report digital incidents, allowing regulators to spot systemic risks more easily. FIs and their ICT providers will be required to conduct regular assessments, from simulating cyberattacks to stress-testing for large-scale failures.

Why is DORA a Game Changer?

DORA isn't just about cybersecurity, but total operational integrity. Standardisation and resilience planning promises several benefits from software bugs to geopolitical shocks, forcing firms to prepare for a wide range of scenarios. For fintechs, meeting its standards will signal maturity, trustworthiness, and a competitive advantage that only 57% of British financial institutions have been able to adopt over the last two years. 

DORA requires the regular testing of systems and processes to assess their ability to withstand cyberattacks, demonstrating a proactive approach to risk mitigation. By harmonising rules across the EU, DORA helps reduce regulatory fragmentation, furthers transparency, and improves cross-industry risk response. And while it is an EU directive, DORA’s impact will be felt far beyond European borders as non-EU companies that serve EU-based financial institutions must also comply. 

Trials and Prospects

Initial compliance might feel like a burden, particularly for startups, but benefits can quickly outweigh this. DORA fosters innovation as it creates demand for advanced solutions in areas like automated incident detection, data continuity, and resilient infrastructure. Firms that adapt early will be better positioned to win customer trust and avoid the steep financial and reputational costs of digital downtime.

Ultimately, DORA represents a pivotal shift in how operational risk is managed in the digital age. By enforcing consistent, proactive safeguards across the financial sector, it ensures institutions remain resilient and responsive, even in crisis. For fintechs, it's both a challenge and an opportunity to lead in a new era of trust, endurance, and security beyond the EU.