The financial institution’s security standard must be strong enough for data protection. They must have the right tools & technology to protect these critical assets. Keeping the client’s data secure is an integral part of their business.
Technology is developing at a high pace in 2020. It will be common to see financial institutions adopting AI, ML & Cloud Infrastructure. Using these, they can offer their clients, better data privacy.
How AI & ML will help in enhancing the financial institution’s security standard?
AI is capable of thinking much faster & efficient than a human ever can. AI & ML using its extraordinary capacities can detect patterns in behavior. It can differentiate between normal & abnormal activities of any user. By observing the past behavior & activities, it can detect for anomalies.
For example in a particular account, 99% of activities occur on working days. So any activity on non-working days is “Irregular”. The activity may or may not be a fraudulent one, but is an anomaly.
Institutions can alert clients when there are abnormal activities detected on their account. It can save their clients assets & resources from cyber-crimes. This gives financial institutions an edge over fraudsters. In 2017 businesses lost around 7% of their annual expenditure to frauds. Proper use of AI & ML can reduce this.
How can Cloud help in improving the financial institution’s security standard?
Cloud Computing helps financial institutions in deploying security measures. Earlier cloud was a very insecure means for handling confidential data. Cloud lacked the security to protect data.
Now companies like Amazons AWS, have worked towards meeting the security standards. They have invested ample time, effort & resources to meet the security standards. Cloud has now become a reliable method for handling private data of clients.
Earlier banks use to build their encryption for encrypting their clients’ data. Now cloud service providers have built better encryption. It is a lot better than what banks have made earlier.
Making physical payments secure and convenient
Earlier financial institutions have used a lot of Bio-metric tools for securing payments. By 2020 most of the smart devices will have some form of bio-metrics attached to it. This will help more people make secured payments through fingerprints & facial scanning.
Even after using biometrics, still, the risk of cyber-crimes prevail. By the use of AI & ML risk will be less. Visa, has now applied AI to its payment technology. They have reported that the global fraudulent transaction rate has decreased by 0.1%.
As AI, ML & cloud develops, we will see a lot of financial institutions adapt to these technologies. to secure their client’s data. The risk of cyber-crime will always be there. We must take the necessary steps to reduce the cyber-crimes.