The Impact of Cybersecurity Spending on the Performance in Egyptian Commercial Banks with a Field Study
Abdel-Al Mustafa Abu Al-Fadl, Ayman Ahmed Youssef Ibrahim, Mahmoud Mohamed Zaki Eid · Journal of Lifestyle and SDGs Review · 2025
Objectives: The study aims to explore the relationship between cybersecurity spending and cyber risks in commercial banks. It also seeks to determine how cyber threats mediate the link between banks' performance and their investment in cybersecurity. By analyzing these factors, the research provides insights into the effectiveness of cybersecurity spending. The findings contribute to understanding how financial and non-financial performance is influenced by cyber risks. Methods: The study employs both deductive and inductive methods to address the research questions. A field survey was conducted among employees of Egyptian commercial banks, including department managers, branch managers, and deputy managers. A random sample of 220 individuals was selected, and 180 valid questionnaires (82% response rate) were collected. The Kruskal-Wallis Test was applied to assess differences in perspectives among respondents. Results: The findings indicate that cybersecurity spending positively impacts reducing cyber risks in commercial banks. Investments in cybercrime prevention and detection had the highest influence, with an average rating of 4.57, followed by cybersecurity development at 4.54. Reducing cyber risks improved both financial and non-financial performance, with the impact on financial performance ranking highest at 4.88. The Kruskal-Wallis Test showed no significant differences in perspectives among respondents. Conclusion: The study highlights the crucial role of cybersecurity investments in mitigating cyber risks and enhancing bank performance. Cybercrime prevention and detection proved to be the most effective areas of investment. Strengthening cybersecurity strategies can significantly improve financial stability and operational efficiency in commercial banks. These findings emphasize the importance of continued investment in cybersecurity for sustainable banking performance.