The digital transformation of the financial sector brings new challenges in cybersecurity and operational resilience. To address these challenges, the European Union has adopted the Digital Operational Resilience Act (DORA), a major regulation that will come into full effect on January 17, 2025. This crucial deadline is rapidly approaching, and financial institutions must prepare now. Is your organization ready to meet the challenge of DORA compliance in 2025?

DORA aims to harmonize and strengthen digital operational resilience requirements across the European financial sector. In practical terms, this regulation establishes a comprehensive framework to ensure that financial institutions can maintain their critical operations, even during major IT incidents.

In this article, we'll explore the key requirements of DORA, the challenges they present for financial institutions, and how low-code solutions like those offered by Basikon can significantly facilitate compliance while strengthening your operational resilience.

Key DORA Requirements for Digital Operational Resilience

The Regulatory Framework and Its Implications

Having entered into force on January 16, 2023, DORA regulation will become fully applicable from January 17, 2025, as indicated by the European Insurance and Occupational Pensions Authority (EIOPA). This regulation applies to a wide range of financial entities: banks, insurance companies, asset managers, payment service providers, fintechs, and even certain critical third-party ICT service providers.

DORA is part of the EU's broader strategy to strengthen the resilience of the European financial system against growing digital threats. According to Mayer Brown, this regulation represents "the most ambitious initiative to date to harmonize cybersecurity requirements in the European financial sector."

The Main Areas of Application

DORA covers five main areas that form the core of DORA compliance requirements:

1. ICT Risk Management: Implementing a robust governance and control framework for information and communication technology risks.
2. Incident Reporting: Obligation to report major ICT-related incidents to competent authorities according to specific timeframes and formats.
3. Digital Resilience Testing: Regular performance of advanced tests, including Threat-Led Penetration Testing (TLPT) for significant financial entities.
4. Third-Party Risk Management: Enhanced monitoring of critical ICT service providers and direct supervision framework for critical third-party providers.
5. Information Sharing: Encouraging the sharing of information on threats and vulnerabilities between financial institutions.

Compliance Deadlines

While the full application date is set for January 17, 2025, certain specific requirements follow a different timeline. For example, provisions related to Threat-Led Penetration Testing (TLPT) will come into force 36 months after the adoption of the corresponding regulatory technical standards.

It's crucial to note that, according to the Bank for International Settlements, "DORA addresses today's most important challenges for ICT risk management in financial institutions and critical third-party ICT service providers." This scope explains why preparation must begin now, despite the 2025 deadline.

The Challenges of DORA Compliance

Technical and Operational Complexity

Compliance with DORA represents a considerable challenge for financial institutions, particularly due to the technical complexity of the requirements. Organizations must implement systems capable of:

• Mapping all their IT assets and their interdependencies
• Identifying and assessing all ICT-related risks
• Implementing appropriate protection and detection measures
• Establishing effective response and recovery processes

This complexity is amplified by the need to integrate these systems with existing infrastructures, which are often heterogeneous and sometimes aging. As highlighted by the European Banking Authority (EBA) in its guidelines on operational resilience, "institutions must adopt a holistic approach that takes into account their entire technological ecosystem."

Revealing Statistics

According to a recent Deloitte study, nearly 78% of financial institutions consider the complexity of their existing IT systems to be the main obstacle to their DORA compliance by 2025. Additionally, 65% believe that integrating DORA requirements into their current processes will represent a significant investment in time and resources.

Impact on Existing Information Systems

For many financial institutions, DORA compliance will require significant modifications to their existing information systems. These adaptations include:

• Upgrading incident monitoring and detection systems
• Improving regulatory reporting capabilities
• Strengthening security measures and access controls
• Optimizing backup and restoration processes

These modifications can be particularly complex for organizations relying on legacy systems or rigid architectures. According to a study by Finextra, "more than 60% of financial institutions consider the modernization of their IT infrastructures as an essential prerequisite for their regulatory compliance."

Need for Agility and Adaptability

Another major challenge lies in the need to adopt an agile and adaptive approach in the face of constantly evolving threats and regulatory requirements. Financial institutions must be able to:

• Quickly adapt their systems to newly identified vulnerabilities
• Integrate regulatory updates into their processes
• Respond effectively to incidents in real-time
• Regularly test their resilience against different scenarios

This agility is all the more crucial as the Regulatory Technical Standards (RTS) associated with DORA continue to evolve. As indicated by the official DORA monitoring website, "several RTS are still under development and could be modified before the final application date."

The Time Factor

With less than 9 months before the January 2025 deadline, time is becoming a critical factor. Studies show that regulatory compliance projects of this magnitude typically require between 12 and 18 months to be fully implemented. This time pressure further reinforces the need for agile solutions that can be rapidly deployed.

The Benefits of Low-Code Solutions for DORA Compliance

Speed of Deployment and Flexibility

Faced with the challenges of DORA compliance, low-code platforms offer considerable advantages, starting with their rapid deployment and flexibility. These solutions allow you to:

• Develop and deploy compliance applications up to 10 times faster than traditional methods
• Easily adapt systems to the specifics of each organization
• Modify workflows based on evolving regulatory requirements
• Integrate new functionalities without disrupting existing operations

This agility is particularly valuable in the context of DORA, where compliance time is limited. As demonstrated by the case of Leascorp, which successfully deployed new commercial channels in less than a week using Basikon's low-code platform, implementation speed can make all the difference.

Case Study: Accelerated Compliance

A medium-sized European financial institution recently used the Basikon platform to establish its ICT risk management framework in accordance with DORA requirements. Thanks to the low-code approach, the complete implementation was achieved in just 4 months, compared to an initial estimate of 12 months using traditional development methods. This speed allowed the organization to focus on optimizing its processes rather than the technical aspects of compliance.

Automation of Compliance Processes

One of the main strengths of low-code solutions lies in their ability to automate complex compliance processes. These platforms allow you to:

• Automate the collection and analysis of ICT risk-related data
• Implement validation and approval workflows that comply with governance requirements
• Automatically generate incident reports required by regulators
• Orchestrate resilience tests and document their results

This automation considerably reduces the manual workload and minimizes the risk of human error. According to a recent Basikon article, "the integration of AI into low-code platforms opens up new possibilities for automating and optimizing regulatory compliance processes."

Simplified Management of Regulatory Updates

Low-code solutions also excel in managing regulatory updates, a crucial aspect for maintaining DORA compliance over time. These platforms offer:

• A modular architecture allowing easy integration of new requirements
• Versioning capabilities to track the evolution of compliance rules
• Configurable interfaces to adapt reports to required formats
• Testing mechanisms to validate modifications before deployment

This flexibility is particularly valuable in a constantly evolving regulatory environment. As illustrated by the experience of Orion Leasing, which uses Basikon for its multi-country regulatory compliance, low-code platforms allow systems to be quickly adapted to the specificities of each market and the evolution of regulations.

How Basikon Supports Your DORA Compliance

A Low-Code Platform Adapted to DORA Requirements

The Basikon platform has been designed to meet the specific needs of financial institutions in terms of regulatory compliance, including DORA requirements. It offers:

• An integrated ICT risk management framework, compliant with industry standards
• Robust incident detection and reporting mechanisms
• Testing and simulation tools to assess operational resilience
• Advanced third-party vendor management functionalities

The Basikon Core Banking solution natively integrates these capabilities, allowing financial institutions to build and manage compliant and resilient operations using low-code technology. As explained in the product documentation, "the platform offers a comprehensive solution for managing financial operations, with a focus on regulatory compliance and operational resilience."

Distinctive Advantages of Basikon

Unlike other general-purpose low-code solutions, Basikon distinguishes itself through its specialization in the financial sector and its deep understanding of regulatory requirements. This translates into:

• Pre-configured templates specifically for DORA compliance
• Sector expertise integrated into the platform's functionalities
• Native connectors with common financial systems
• A security approach designed from the start for the financial sector

Concrete Customer Cases of Compliance Implementation

The effectiveness of Basikon for regulatory compliance is demonstrated by numerous customer cases in the financial sector:

• Leascorp successfully improved its productivity and increased its network by 300% with 32,000 clients, while maintaining regulatory compliance thanks to the Basikon low-code platform.
• Orion Leasing uses Basikon to manage its regulatory compliance across multiple countries, with seamless integration with more than 25 local APIs and automation of reporting processes.
• Calvin implemented a fully regulation-compliant financing operations management solution, with implementation completed in just 4 months.

These examples illustrate how the flexibility and rapid deployment of Basikon solutions enable financial institutions to effectively adapt to regulatory requirements, including those of DORA.

Key Features for Operational Resilience

The Basikon platform integrates several key features specifically designed to strengthen digital operational resilience:

• Modular and API-first architecture: Facilitates integration with existing systems and third-party services, while maintaining a coherent overview of risks.
• Configurable workflows: Allows modeling and automating incident management, reporting, and recovery processes.
• Control and audit mechanisms: Ensures complete traceability of actions and decisions, essential for regulatory compliance.
• Disaster recovery capabilities: Guarantees the continuity of critical operations, even in the event of a major incident.

These features are complemented by the Basikon Core Lending solution, which offers specific capabilities for managing credit and financing operations. Together, these solutions form a comprehensive platform to meet DORA requirements for digital operational resilience.

Conclusion

Compliance with DORA regulation represents a major challenge for European financial institutions, but also an opportunity to strengthen their digital operational resilience against growing threats. Low-code solutions like those offered by Basikon provide a pragmatic and effective approach to meeting this challenge.

By combining rapid deployment, flexibility, automation, and simplified management of regulatory updates, these platforms enable financial institutions to comply with DORA requirements while optimizing their resources and strengthening their competitiveness.

With the January 2025 deadline rapidly approaching, now is the time to assess your DORA readiness and explore solutions that will allow you to transform this regulatory obligation into a strategic advantage. The Basikon low-code platform, with its features specifically designed for regulatory compliance and operational resilience, represents an excellent solution for meeting this challenge.

Quick Start Guide for Your DORA Compliance

To begin your journey toward DORA compliance with Basikon:

1. Assessment: Request a free diagnosis of your DORA readiness level
2. Planning: Develop a personalized roadmap with our experts
3. Implementation: Rapidly deploy the necessary modules thanks to our low-code approach
4. Training: Train your teams in the optimal use of the platform
5. Continuous optimization: Benefit from regular updates to maintain your compliance

Prepare for DORA with Basikon: Request a personalized demonstration of our low-code platform and discover how to reduce the time needed for your compliance by 60%.

FAQ on DORA and Low-Code Solutions

What is DORA and when does it come into effect?

DORA (Digital Operational Resilience Act) is a European regulation aimed at harmonizing and strengthening digital operational resilience requirements for the financial sector. Having entered into force on January 16, 2023, it will become fully applicable from January 17, 2025.

Which entities are concerned by DORA?

DORA applies to a wide range of financial entities: banks, insurance companies, asset managers, payment service providers, fintechs, and certain critical third-party ICT service providers. If you operate in the financial sector within the EU, you are likely concerned.

How do low-code solutions facilitate DORA compliance?

Low-code solutions allow for the rapid development and deployment of compliance applications, automation of complex processes, easy adaptation of systems to regulatory changes, and integration of specific functionalities required by DORA (ICT risk management, incident reporting, resilience testing, etc.).

What are the recommended timeframes for preparing for DORA?

Although full application is scheduled for January 2025, it is strongly recommended to begin preparation now. A DORA compliance project typically requires between 12 and 18 months, depending on the complexity of the organization and its maturity in ICT risk management.

Is the Basikon platform suitable for financial institutions of all sizes?

Yes, the Basikon platform is designed to adapt to the specific needs of financial institutions of all sizes. Its modular and configurable nature allows it to be adjusted to the particular requirements of each organization, whether it's a small fintech or a large banking group.

How can I assess my current level of DORA readiness?

Assessing your DORA readiness should include an analysis of your current ICT risk management frameworks, incident reporting processes, resilience testing practices, third-party vendor management, and information sharing mechanisms. Basikon offers an initial diagnosis to help you identify gaps relative to DORA requirements.

What technical skills are necessary to use the Basikon low-code platform?

One of the main advantages of the Basikon platform is its ease of use. Business teams can configure and adapt most functionalities without deep technical skills. For more complex customizations, basic development knowledge may be useful but is not mandatory thanks to the intuitive visual interface.

How does Basikon ensure data security and confidentiality within the DORA framework?

Basikon integrates advanced security mechanisms compliant with the strictest standards in the financial sector. The platform offers end-to-end encryption, granular access management, complete action traceability, and protection measures against modern threats. These features are essential for meeting DORA requirements regarding data security and protection against cyber threats.