Digitalization is changing the world and impacting all our lives. Be it at work, while shopping or availing of services, we are all becoming more and more dependent on technology. The recent strides in technology such as cloud based services and big data, advanced analytics and machine learning have created tremendous opportunities for businesses to grow. The financial services industry especially has been impacted by technologies such as robotic process automation. Since a majority of tasks performed in financial services are rules driven and repetitive there is tremendous opportunity for using automation to cut costs, improve efficiency and reduce human error rates.
Compliance And Fraud Detection Rise In Priority
The banking industry is not far behind. Banks are seeing an increasing thrust on digitalization with consumers demanding more and more online services. Unless banks are able to upgrade their services and upgrade quickly they are at risk of losing their customers. Technology is expected to contribute in the finance services industry on all fronts but the most important of all is probably in the area of compliance and fraud detection. As per Payza founder Firoz Patel, scams and data thefts are some of the biggest problems being faced by the financial services industry today. Last year’s World Payments Report also reiterated the importance of using technology for compliance and fraud detection.
Banks are increasingly feeling the pressure to digitalise processes such as compliance tracking, fraud detection and also prevention of fraud. The growing risks in cyber security have created an urgent need to use more advanced techniques and methods to keep cyber criminals and fraudsters at bay. The latest trend is to use machine learning to detect patterns in online criminal behaviour and thwart an attack before it occurs. The recent Mirai bots attack used to bring down Dyn servers is an example of how easily criminals can manipulate and control online systems. While these attacks did not impact the financial services industry, they serve as an early warning system of the kind of threats we could face in the future.
One solution is for banks and other financial institutions to come together and make a collaborative attempt to ensure compliance and fraud detection measures are taken as their services become increasingly digitized. This common front is probably the only way to keep pace with fraudsters and hackers who are always coming up with new means to break through systems, steal data or cause other damages.