In today’s digital ecosystem, innovation in the BFSI sector is highly driven by technology. Making new platforms available for their products and client lifting has been greatly aided by newer developments in the IT sector. Global market research reports suggest that the mobility of all kinds of banking services has improved greatly post the introduction of internet and mobile banking facilities.
The use of AI bots allows various firms to offer live chat support to their customers. The same technology is also employed to study consumer behavior thus guiding the company towards better customer-oriented services. The efficiency of these services has increased appreciably. However, there also prevail serious threats from technological advancements plaguing the finance and banking market.
1. Cyber threats
With a staggering rise in the accessibility of internet, electronic platforms for all BFSI services are in high demand. This way, the security information of these enterprises is in grave danger. Banking services are expected to face growing challenges as their computer information systems are constant targets for cyber attacks. Threats in the form of phishing, malware, or DDoS are on the rise and are getting more sophisticated.
2. Mobile banking risks
The controls programmed to protect the traditional online banking do not go well with mobile phones. This makes the functionality of mobile banking apps fairly limited. With the growing connection between social media and our cell-phones, it has become all the more important to mitigate confidential-data leaks. The company’s own employees might take up to these sites to intentionally expose sensitive information.
3. Fraudulent transactions
There is a great rise in customer grievances with their bills and passbooks indicating transactions they never made. These are usually done to obtain products from online stores without paying for it or to acquire funds from the bank without the knowledge of the account-holder. Third party breaches like these are a great burden to the service provider.
4. First-party fraud
BFSI products include loans; in the form of credit cards or general loan schemes. When financial service providers lend loans, they have to ensure minimum risks to the money that the other customers have entrusted them with. But a number of people take loans with no intention of repaying it. These people usually misrepresent themselves and apply for loans with false identities.
5. Attacks from an insider
Disgruntled employees are usually the ones responsible for an inside attack. A compromise of internal information has the ability to destroy an organization completely. And access to such sensitive information is not well regulated.
However, at times, employees are also targeted by cybercriminals and may not actually be the brain behind such incidents.
Boosting security with technology
The technology market can be expanded to provide the following security solutions to BFSI enterprises:
- Better authentication methods to prevent unauthorized transactions
- Penetration testing and advance vulnerability scanning
- Block chain deployment
- Simplifying the banking architecture
What are the benefits?
The BFSI security landscape is dynamic. And, the perks of integrating technology with it are many
Technology makes security solutions more efficient
Computing big data is time-consuming and to err is human. Machine learning and other technological advances work greatly to save your time in various business operations and also make them less error-prone.
The status of your security system becomes more accessible
Most security systems can be integrated and accessed on a single computer or mobile phone. All data can be saved on the same device to be referred to at a later instant.
It helps you anticipate potential problems
Identifying, tracking, and analyzing attacks are easier with technology. Primed by past criminal behavior, computers are quick at notifying the owner about potential threats to their systems.
Technology evolves with crime
All intrusion techniques have a shelf-life. So, cybercriminals are constantly working on newer ways to hack your systems. Technology is advancing at a quick pace and evolves with the criminal’s mind for better solutions.
BFSI security is sitting on the dearth of technological intervention. Integrating technology into this field with catalyze the growth of BFSI services by reducing the number of hurdles. The industry can be thus be transformed with better innovations in terms of security solutions.