As the financial sector's digitalization accelerates, **operational resilience** has become a critical challenge for all organizations. The European DORA (Digital Operational Resilience Act) regulation represents a major evolution in the digital security framework for the financial sector. Its entry into force on January 16, 2023 marks the beginning of a profound transformation, with a compliance deadline set for January 17, 2025. Financial institutions have a limited period to achieve compliance, facing potential penalties that could reach several million euros.

For financing platforms offering consumer credit, leasing, or deferred payment solutions, this new regulation represents a major challenge. Beyond mere regulatory compliance, DORA offers a unique opportunity to sustainably strengthen operational resilience and customer trust. In this comprehensive guide, we explore the practical implications of DORA and practical solutions for successful compliance.

DORA 2024 Fundamentals

Objectives and Scope

The Digital Operational Resilience Act establishes a harmonized regulatory framework across Europe. The European Commission designed this regulation to address the growing vulnerabilities in the financial sector against cyber threats. Unlike previous regulations that primarily focused on data protection, DORA takes a holistic approach to digital resilience. This new regulation covers all financial actors, from traditional banks to innovative fintechs, including alternative financing platforms.

Implementation Timeline

The transition period until January 17, 2025, requires a methodical and progressive approach. Organizations must first conduct a thorough assessment of their current systems, identify gaps against DORA requirements, and then implement necessary changes. This transformation must be realistically planned, considering operational constraints and available resources. Experience shows that organizations equipped with modern risk management solutions are better positioned to succeed in this transition.

Affected Stakeholders

DORA's scope extends well beyond traditional financial institutions. Financing platforms offering innovative solutions such as Buy Now Pay Later, leasing, or factoring are particularly affected. These players must not only ensure compliance of their own systems but also guarantee the resilience of their ecosystem of partners and technology providers.

The 5 Essential Pillars of DORA Compliance

IT Risk Management

IT risk management forms the cornerstone of DORA. This requirement goes far beyond simple system monitoring. It requires implementing a comprehensive digital risk governance framework. Modern risk management platforms must integrate a central repository allowing a consolidated view of all technological risks. This repository must be accompanied by detailed mapping of IT assets and system interdependencies. Organizations must also implement continuous monitoring mechanisms, enabling early anomaly detection and rapid incident response.

Incident Reporting

DORA introduces strict requirements for IT incident reporting. Financial institutions must now implement a structured and standardized notification system. This system must categorize incidents according to their severity and potential impact on activities. Notification deadlines to authorities are also strictly regulated, requiring increased team reactivity. Modern core banking solutions now integrate automated incident detection and reporting functionalities, facilitating compliance with these new requirements.

Digital Resilience Testing

Regular resilience testing becomes mandatory under DORA. These tests must simulate realistic scenarios of cyberattacks and major operational incidents. The low-code approach proves particularly relevant for rapidly developing and adapting test scenarios. Organizations must conduct advanced penetration testing, business continuity exercises, and disaster recovery simulations. These tests must involve all stakeholders, from technical teams to executives, to ensure a coordinated response in case of an incident.

Third-Party Vendor Management

The supervision of critical IT service providers takes on a new dimension with DORA. Financial organizations must establish a robust framework for managing third-party risks. This involves thorough vendor assessment before selection, continuous performance monitoring, and specific contractual clauses ensuring their compliance with DORA requirements. Our clients' feedback shows the importance of a structured approach in managing these relationships, particularly for cloud services and critical solutions.

Information Sharing

DORA promotes the creation of a collaborative cybersecurity ecosystem in the financial sector. Organizations are encouraged to share information about threats and incidents while complying with GDPR requirements. This information sharing must occur through secure and standardized channels. Financing platforms must therefore implement information sharing protocols while preserving their clients' sensitive data confidentiality.

Impact on Financing Platforms

New Technical Requirements

DORA's technical impact on financing platforms is considerable. Existing systems must be strengthened to integrate advanced security mechanisms. Modern lending solutions must include end-to-end encryption of sensitive data, real-time intrusion detection systems, and redundant backup mechanisms. The technical architecture must be redesigned according to "security by design" principles, integrating security from the solution design phase.

Adaptation of Existing Processes

DORA compliance requires a significant overhaul of operational processes. Financing platforms must review all their risk management and security procedures. This transformation affects all aspects of the organization, from user access management to system maintenance. Modern core lending solutions facilitate this adaptation by offering preconfigured workflows compliant with regulatory requirements. Validation, audit, and control processes must be formalized and documented, creating a clear and comprehensive audit trail.

Practical Solutions for Compliance

Low-Code Approach as a Strategic Response

Facing DORA compliance challenges, the low-code approach emerges as a particularly relevant solution. This technology enables rapid system adaptation to new regulatory requirements while maintaining a high security level. Experience shows that low-code platforms significantly reduce development time and error risks in security control implementation. This agility becomes a major competitive advantage in an ever-evolving regulatory environment.

Essential Tools and Features

To meet DORA requirements, financing platforms must equip themselves with specific tools. Modern risk management solutions integrate real-time dashboards for system monitoring, automated anomaly detection mechanisms, and sophisticated regulatory reporting tools. These features must be complemented by robust backup systems and detailed business continuity plans.

Preparing Your Organization for DORA

Team Training and Awareness

The success of DORA compliance largely depends on team preparation. A comprehensive training program must be implemented, covering both technical aspects and operational procedures. Staff members must understand digital resilience challenges and their role in maintaining compliance. Modern core banking solutions often include integrated training modules, facilitating team adoption of new practices.

Documentation and Procedures

Comprehensive documentation of systems and procedures becomes a central requirement of DORA. Organizations must maintain up-to-date documentation of their technical architecture, security procedures, and business continuity plans. This documentation must be easily accessible and regularly updated to reflect system and practice evolution.

Conclusion

DORA compliance represents a major challenge for financing platforms, but it's also an opportunity to sustainably strengthen their operational resilience. Adopting a low-code solution like Basikon not only helps meet regulatory requirements but also provides a scalable and secure infrastructure. In an ever-evolving financial sector, DORA compliance becomes a differentiating competitive advantage.

Time is running out for DORA compliance. Don't fall behind your competitors. Discover how Basikon can accelerate your transformation and secure your compliance. Request your personalized demo today.

FAQ

What are the financial consequences of non-compliance with DORA?

Non-compliance with DORA can result in significant financial penalties, potentially reaching several million euros, as well as operational restrictions that could significantly impact business activities.

How does DORA align with other existing regulations?

DORA complements existing regulations such as GDPR by specifically focusing on digital operational resilience in the financial sector. It integrates into the existing regulatory ecosystem while strengthening cybersecurity requirements.

What is the average cost of DORA compliance?

Costs vary depending on organization size and digital maturity level. Adopting a low-code solution like Basikon significantly reduces these costs while accelerating compliance implementation.

How does a low-code platform facilitate ongoing compliance?

A low-code platform enables rapid system adaptation to regulatory changes, maintains up-to-date documentation, and automates compliance controls, thus reducing operational burden.