The National Institute of Standards and Technology has joined in a new public-private partnership to spur cybersecurity innovation in the financial-services sector.

Through a memorandum of understanding signed last month, NIST, the Department of Homeland Security Science and Technology Directorate, and the Financial Services Sector Coordinating Council agreed to work together to speed the application of research into practice for better cybersecurity for that sector.

The organizations plan to leverage their core cybersecurity expertise, research and development capabilities, and other resources to explore the benefits of new cybersecurity technologies and develop new processes that benefit specific functions for financial services. This collaborative research also is expected to be applicable to health care and so-called "smart grid" cybersecurity needs.

Nearly all modern financial services—banking and credit card transactions, insurance, trading and funds management, and many other business and consumer financial activities—are delivered online to all parts of the economy and society. Online services also are integral to international commerce. Both the public and private sectors have vital interests in securing financial services against threats.

The three members of the partnership have complementing capabilities:

•NIST's Information Technology Laboratory advances the state of the art in information technology and cybersecurity through innovations in mathematics, statistics, and computer science. It also conducts research to develop the measurement and standards infrastructure for emerging information technologies and applications. Working with industry, other government agencies, and academia, the institute accelerates the development and deployment of IT systems that are designed to be reliable, usable, interoperable, and secure.

•The Financial Services Sector Coordinating Council supports research and development initiatives to protect the physical and electronic infrastructure of the banking and finance sector and to protect its customers by enhancing the sector's resilience and integrity. The council's members include banks, credit unions, insurance companies, payment services, and trading firms, among others.

•The Science and Technology Directorate is the Department of Homeland Security's research and development arm. Among its priorities, this group conducts—in cooperation with other federal agencies, state, local, and tribal governments, universities, and private industry—cybersecurity research and development to secure the nation's current and future electronic infrastructures.

The groups will develop case studies and the supporting test plans to facilitate high assurance network infrastructures, advanced identity management technologies, and improved usability of security technologies.