Security tools form the most pivotal and integral part for most of the financial institutions and banks as they form one of the crucial foundations of any businesses. They form the vital part of keeping their customers’ accounts safe but also with regards to internal compliance. Thus, they safeguard both the data as well as customer’s financial conditions, profile, banks financial data intact.
With the development of swifter technological forefront, in 2020, more banking and premier financial institutions will gradually begin to adopt Artificial intelligence (AI) paired with machine learning (ML) and Cloud Computing to offer their customers enhanced security features.
AI & ML to take the Centre Stage: –
The banking arena will be supported hugely by the ample utilization of AI and ML in 2020, for supporting their customers to keep their account data secured by apt detection of any issues and fraudulent activities reported in a swifter manner. The beauty of using AI and ML in this way lies in their ability to understand what is ‘normal’ for each account or card by recognizing patterns based on previous transactions and behaviours.
For an Illustration: – If there are 99% of the transactions for one account that runs from Monday to Friday, a transaction that occurs at the weekend will be seen as abnormal and flagged as such. With AI speeding up the detection of any deviations from normal patterns, banks will be able to respond more rapidly when informing their customers if their accounts appear to have had unusual activity.
As businesses currently lose an average of 7% of their annual expenditure to fraud and 2017 seeing a record 16.7 million victims of identity fraud, the use of AI and ML should see this figure curbs down.
AI and ML will also be pivotal for the cybersecurity scenario and maintaining a regulatory compliance, both of which are trending hot topics for the financial services sector and will continue to be moving into 2020 and beyond.
We will witness more banks utilizing the ML to code platforms to identify consumer patterns and detect anomalous network behaviour, which is becoming pivotal as cyber-attacks are often disguised with discreet data or code.
The rise of Smartphone as the latest Banking Norm: –
The Smartphone Banking norm is at its peak with the rise of tech savvy consumers and preferences of Millennials and Generation Z, it will become the best widely utilized banking platform in 2020. However, the smartphone platform also becomes the most vulnerable component or target when it comes for the fraudsters, hackers to potentially attack and get the vital statistics of the banking consumers.
Therefore, despite possessing the best tool as the ease of doing banking and representing victory for convenience, it draws attention of making and utilizing to incorporate best-in-class security mechanisms for protecting banking users from fraudulent activities, mechanisms.
Biometric adoption will make the payments more secured: –
Biometrics are wont to make accessing accounts and making payments safer for variety of years now, but just for those with certain devices and with certain banks. However, it’s predicted that by 2020, nearly all smart devices, including mobile phones, tablets and wearables, will have some sort of biometric security enablement, then this functionality will soon become more widely available. Consequently, more people are going to be ready to make payments through fingerprints and face recognition and by 2023 it’s estimated there’ll be over 2.6 billion biometric payment users.
Although biometric identification currently tends to only be available to consumers, 2020 might be the year that corporate clients gain access to an equivalent functionality. As biometric functionality extends into the company card arena, the commercial payments process won’t only become safer but also more seamless. We could also see mobile wallets that defer to the individual’s personal attributes to form secure payments on these cards, whether authenticated through fingerprint or face recognition.
While cybersecurity threats like malware and therefore the risk of fraud isn’t getting to get away, in 2020, we’ll see banks adopt new and more sophisticated measures to stop these instances and improve security within the financial sector. Key to the present are going to be the increased adoption of AI and ML technologies which can help banks detect anomalies faster and maybe at some point stop them from occurring altogether. The efficiency of those technologies is already being realized by corporate banks, with Visa’s use of AI having reduced global fraud rates to but 0.1%.
As more banks recognize the many impact AI and ML can haven’t only on security but their organisations in 2020 and beyond, it’s likely we’ll see more companies turning to FinTechs for better support. In such a competitive market, this may be an important step to find out the way to best leverage these technologies to enhance security and maintain compliance so as to retain customers and attract new ones. These technologies also will offer banks the advantage of becoming more agile and innovative, therefore helping them to retain their existing customers and attract new ones.