Introducing DORA: What financial institutions need to know
The Digital Operational Resilience Act (DORA) is a landmark regulation set to reshape the way banks, fintechs, and payment service providers manage IT risk, test payment infrastructures, and ensure compliance. In an era where cyber threats, system failures, and regulatory scrutiny are at an all-time high, financial institutions must ensure their payment infrastructures are resilient, compliant, and operationally robust.
DORA’s compliance deadline was 17 January 2025, yet a Censuswide survey commissioned by Orange Cyberdefense just before the deadline, revealed that 43% of financial services organisations in the UK are still in the process of implementing DORA and anticipate at least three more months before achieving compliance, leaving them vulnerable to potential regulatory penalties* [*Source computerweekly.com]
Financial institutions need to act fast to strengthen their payment systems, optimise testing, and meet strict resilience and reporting requirements.
But what exactly does DORA mean for payments testing, and how can businesses prepare?
What is DORA?
The Digital Operational Resilience Act (DORA) is an EU regulation designed to enhance the operational resilience of the financial sector by setting clear requirements for IT risk management, payment system testing, and third-party vendor oversight.
DORA applies to banks, payment service providers, fintechs, insurers, and other financial entities that rely on technology to process transactions and maintain customer trust.
The five key pillars of DORA include:
1. ICT Risk Management – Financial institutions must establish robust frameworks to identify, assess, and mitigate cyber and operational risks.
2. Incident Reporting – Firms must follow a structured reporting process for operational disruptions and cyberattacks.
3. Resilience Testing – Payment systems must undergo continuous stress testing to prevent failures and breaches and to demonstrate repaid and accurate recovery.
4. Third-Party Risk Management – Banks must ensure their vendors and technology providers meet stringent security and operational standards.
5. Information Sharing – Financial entities are encouraged to share cyber threat intelligence to strengthen sector-wide resilience.
DORA is more than just another compliance requirement. It is a shift towards a more secure and resilient financial services industry, ensuring that payment infrastructures can withstand both internal and external threats.
How DORA impacts payments testing and compliance
For banks, fintechs, and payment service providers, payments testing is no longer just about functionality—it is about resilience. DORA raises the stakes by requiring continuous, real-world testing of payment infrastructures to ensure stability under pressure.
By taking a proactive approach to payments testing, financial institutions can turn DORA compliance into a competitive advantage. Ensuring seamless transactions, protecting customer trust, and reducing regulatory risks will help organisations stay ahead of the curve.
Steps financial institutions must take to prepare for DORA
With the 2025 deadline already upon us, banks and fintechs should take the following actions now:
– Assess current payments testing frameworks and identify gaps in operational resilience, compliance testing, and incident response.
– Implement automated testing and monitoring to leverage AI-driven automation for identifying vulnerabilities and preventing failures.
– Strengthen third-party risk oversight by evaluating vendors’ ability to meet DORA’s resilience and security standards.
– Conduct regular stress tests and non functional testing to ensure payment systems can withstand cyberattacks, transaction spikes, and service disruptions.
– Engage with compliance and risk experts, partnering with specialised consultancies like Hive Quality Engineering to develop a tailored DORA compliance roadmap including the supporting Software Quality Engineering and regular testing regime.
Future-proofing payments testing with Hive
DORA represents a significant shift in financial services, moving beyond basic compliance to ensure that payment systems are resilient, secure, and future-ready.
If your organisation is preparing for DORA compliance and looking to strengthen its payments infrastructure, get in touch with us today to learn how we can help build a resilient, compliant, and future-proof payments system.
