The Smart Banker and his Security team mate

Security threats are more frequent and forceful than ever especially in the financial industry. Cybersecurity is one of the greatest risks facing the financial services industry today. It is estimated that data from 97% of all companies have already been hacked.

The impact of a breach is brutal both on the reputation and finances of a brand. The average time taken to remedy a data breach is 45 days and comes at a whopping cost of USD 15 million (which doesn’t include regulatory fines). Money laundering alone tops $500 billion each year. Regulatory penalties can be severe. According to Boston Consulting Group, the worldwide fines levied against lenders since 2008 exceeds $ 321 billion.

Cyber security expert Simon Bain from BOHH Labs, has compelled regulators and banks to adopt innovative technology such as artificial intelligence and machine learning to minimize the threat of cybercrime. Bain believes these technologies will benefit banks greatly – “Machine learning uses a compound set of algorithms to detect patterns and predict outcomes from a large amount of data online. As such, the self-learning capabilities and ability to recognize patterns and anomalies within them, makes AI and machine learning a great tool to detect cyber security threats.”

 

The 24/7 Banker – smart and diligent

So, can our new age Smart 24/7 Bank help with security? Oh yes! As mentioned in my previous blogs, data is the central team member of the bank, AI is the brains to find the event or profiles, and workflow and robots get the work done. Bring these together to attack security threats and execute mitigation plans. Let the Smart 24/7 banker be the watch dog.

Just as before, data is the nucleus for identifying threats and taking the right actions. Today, AI and machine learning is used to detect fraud, providing banks and their customers immediate notification for dubious transactions. It is great! It makes the customers feel like the bank has ‘their back’ with a sense of security. It can also prevent fraud or dispute cases which saves the bank a lot of money.

With omni-channel fulfilments taking precedence, identity thefts are becoming popular too. The smart banker can manage this too by monitoring the current behavior compared to the past and authorizing the devices you access bank accounts from – making sure that it’s not a fraudster posing as you. It could also possibly monitor transactions made from your mobile on an unsecure public Wi-Fi.

There is so much more the Smart Banker AI can help with too like large-scale hacks, to the money laundering, deposits fraud, or even human trafficking.

 

Data is Key!

Again, the key is data – secure it and use it to detect risks before they become impactful. 80% of a security analyst’s time is spent on collecting and querying data. Maintaining data securely in a process driven environment or master data management is light years better than desperate worksheets or rogue programs of the past decades. But many of these systems are still around. Knowing what data and systems are being used at any given step of the process, who is using the data and maintaining an audit trail – these are some of the fundamental practices to be followed.

 

How will it be in the future?

More action is needed. The AI engines for the smart banker needs more data to learn from. The best approach is industry collaboration within banks to share break incidents and relevant correlated data. With that the AI will learn. The 24/7 Banker will become smarter and a diligent security officer.

Robert Wichtendahl

Vice President, BPM Practice - Banking Financial Services, Virtusa Corporation Robert has 25 years of technology and business experience, mostly in the Financial Services industry. For the past 14 years, Robert has led numerous BPM initiatives both from a product development and deployment perspective. In addition, he has designed and deployed BPM centers of excellence. Earlier in his career Rob focused on Data Warehousing, Reporting, Business Intelligence, Database Marketing, Operations Re-engineering, and Primary/Secondary Market Research providing him a diversified background. Robert holds a Bachelor of Business Administration in Management concentration in Finance from Adelphi University

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