Resolving BFSI Security Threats with Technology

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.

Italy Wealth Management Sector from 2015-2019 Bears a Golden Lining

 

The Italy Wealth Report 2015 concentrates on high net worth individual (HNWI) population along with management of wealth market of the region. The performance, asset allocations also oversees the local conditions spanning 263,338 HNWIs in the year of 2014, while holding US$1.1 trillion value. Per HNWI recording was US$4,214,133.O in the accounting period. In 2015, the numbers rose to 1.7% from 2.5% of 2012. Growth in volumes and Italy Wealth Management scope is positive until 2019, where the rise in percentage of value is expected at 31.2% or US$1.5 trillion by the year of 2019.

Evaluation of HNWIs and UHNWIs in Italy to 2019

For the forecast duration, the Italian HNWIs total number can increase by 19.0% and reach 318,689 by 2019. Also, at the end of 2014, the HNWIs held US$424.0 billion or an acceleration of 38.2% outside its borders, a significant upsurge worldwide average at 20 to 30%. The challenges and opportunities for the wealth sector in Italy stems from the local economy, carving detailed progress made each year in HNWIs. The analysis is done on private banking, merger, acquisition, management for wealth sector and others. The average wealth per person in target group was US$90.1 million in 2010-2014.

In this group there were 3,083 renowned millionaires, 28 billionaires, and 606 centi-millionaires. In 2014, there was uproar of 3,717 UHNWIs that accounted to only 1.4% of the total population of HNWI last year, as per a market research. The UHNWI wealth bands saw a great improvement by 133.3% shoot up for billionaires, 6.2% for millionaires, and 6.1% for centi-millionaires. The UNHWI s will better in number by 18.9% reaching 4,529 by 2019, with 3,763 prosperous millionaires, 32 billionaires, and 734 centimillionaires.

Asset Allocations for Italian HNWIs

Real estate holds the highest possibility of profits carving 25.6% complete HNWI assets, with fixed income at 16.3%, equities at 17.8%, cash & deposits at 15.7%, alternatives at 10.3%, and business interests at 14.3%. The commodity allocations increased from 1.4%-1.5% of assets over this accounting duration, with liquid assets stock at US$552.2 billion until 2014, having 49.8% wealth holdings. The allocations in Europe for the same decreased from 57.7% in the year of 2010 to only 29.5% in the year of 2014.

The newest asset allocations in Italy HNWIs are through 13 asset classes. North America had a share of 36.8% of foreign assets for Italian HNWIs in 2014, followed by Europe (29.5%), Asia-Pacific (13.8%), South America (15.1%), Africa (2.1%), and Middle East (2.7%). There was also decrease in European investment for the forecast period, which depicted 10.3% of foreign assets of HNWI to 2019 only, and investments continue to increase in North and South America.

Chile’s Cards and Payments Industry Sees a New High to 2019

 

The Chile’s payments and card industry revolutionized into advancement with entry of multinational banks and government efforts. There are several modernization techniques implied for infrastructure and financial inclusion program for the cards and payment industry. With decline of check use, the credit and debit cards utilization has increased. A large population is now taking banking services that were previously un-banked. Government initiatives for basic financial and banking facilities are key drivers.

Has Electronic Card Payment Reshaped Financial Industry?

The industry is booming, and according to World Bank’s Global Findex, the population over 15 years of age in global financial inclusion database, grew in account from the year of 2012 at 42.2% to 63.3% in the year of 2014. As per Financial Services Market Research, Banco de Chile (new checking account introduced) in November 2014, ushered more of unbanked population and low income. But, there were CuentaRUT account holders by 7.4 million at BancoEstado in 2014.

It represented 41.6% of total Chile’s population. But, CuentaRUT also is pitched in competition against Chile Account, as mentioned above. The Industry Research Reports convey a high penetration of mobiles in Chile that increased the incidence of mobile or m-payments. It also served as welcome for new entrants to the market. M-payment is led by Omlis, who is a solution provider. It entered the market of Chile in July 2014.

Who are leading the Cards and Payment Market in Chile?

In 2013, Movistar (Chilean telecoms operator) launched Pago Movil that allowed people to pay for bills from their mobile phones. Lonixm another service provider for mobile devices introduced Cuenta Movil service, which is partnered with Entel PCS and Banco de Chile in the year of 2012. The option was extended to mobile wallet services for the customers of Banco de Chile. Such initiates are encourages to drive the Chilean cards and payments industry. With a lot many people turning towards carrying cards for payment, the threat to theft of direct cash has also reduced.

India will provide enormous online market for shopping with credit card!

In spite of third largest user base in the world, response from internet savvy population was comparatively less than the United States of America, United Kingdom or France but nowadays it is moving ahead with significantly faster rate, every month there are 6 million new entries being registered. It is absolutely remarkable growth. In the opinion of this survey fundamental three reasons behind online shopping are feasibility, price and fun. The study did prove that Indians dedicate five hours every day for online shopping, it is slightly above than the daily average of four and a half hours in the Asia Pacific region. The three major verticals for online shopping are fashion, online bill payments and movie tickets apart from these three major categories personal electronics, gadgets, and computer equipment are also considered as leading categories.

A report prepared on the basis of Market Research clearly showed that maximum number of Indians who land up in online shopping choose to pay for the product by resorting to credit or debit cards instead of paying cash after receiving the delivery of the product, some of them also select online banking. This survey has been conducted by ‘Visa’ the financial services firm. Approximately 74 % of the buyers went for options such as credit card, debit and prepaid cards to make payment for online purchase; merely 51% of the total population chose cash-on-delivery. Today, India had an internet user base of almost 243.2 million as per the reports published in the month of January 2014.

China ATM market ahead of US – New Analysis

As per the report analysis of the year 2014, the ATM market in China had become one of the largest markets in the year 2013 and this is said to have surpassed the United States. The actual number of China’s ATM has increased tremendous note in the recent period of time although there are issues related to the large level installed bases and higher rate of growth, the growth still could manage to find acceleration in the year 2013. In an overall survey, the ATM count in the country has increased to around 25 percent thus reaching a total machine count of 5,20,000. And there is increasing requirement of ATMs as there is more issuance of payment cards by the year end of 2013. There is continuous demand from customers and which is noted as the major driver for the growth of the ATM markets in China and Banking Industry.

There is government causing encouragement for the extension of the provisions to have ATM set and order for attracting new card holders. With several banking and finance market analysis and statistics from various other sources states that the withdrawal status actually increased by around 20 % in the year 2013 which has a driving of higher amount of cardholders at larger banks. The volume level has definitely made a huge level impact on the economy too. Cash payment although can be considered as one of the most used paying tool in various rural areas but there is timely development and increase in the ATM markets. There is installation demand from various areas for ATM systems which is seen as a global sign for rising card users.