The banking sector is one of the fastest developing and, at the same time, one of the sectors most vulnerable to cyberattacks. Over time the trust level to the machines expressly increased, giving new opportunities to technological development. Automatisation of processes increased their efficiency but also created new risks which must be addressed. Thus, new solutions are being implemented — more efficient and more user-friendly. All of these new technologies and trends are also known as modern banking.
One of the modern banking solutions created to increase our safety is the usage of biometric data to log into the mobile banking system or for the confirmation of credit transfer. Our smartphones are equipped with a fingerprint scanner, face ID system, or iris scanner. This system of verification is very effective because the falsification of biometric data is almost impossible. The stats show that 95% of web attacks are made through a stolen password, which is an obvious cause for the development of new verification methods. Today’s scanners are so precise that sometimes even the smartphone owner may have problems unlocking application or confirming an action. Usage of biometric data to unlock access to our mobile banking apps increases security and blocks unauthorized access.
The quality and comfort of customer service improved significantly after the introduction of the Artificial Intelligence and Robo-advice system. The daily use received new solutions such as virtual assistant or chatbots, which efficiently respond to the frequently asked questions and show the current banks offer.
Access to information about clients allows banks to make a rapid analysis of the data which can be used in planning further activities. Artificial Intelligence, using its algorithms, allows detection and prevention of fraud carried out by credit cards. In case of catching the suspected transaction, the payment is blocked automatically. AI also helps to verify the personal identity, legal document correctness, or annual reports.
Almost 85% of companies’ executives predict that AI will provide an advantage to businesses in the future, which shows that’s the direction to follow. Implementation of all these innovations leads specialists with IT knowledge to become an even more important asset for every company in the modern banking sector. Not only because of the possibilities that those innovations provide, but also because of the dangers they create.
Mobile banking experts continuously increase the level of protection from cyberattacks. Some of the most popular types of hacker attacks are, as follows:
- Man in the middle (attack consisting of participation of outside bodies during the validation of transactions between the online shop and the customer)
- Phishing (the theft of personal data)
- SQL Injection (exploiting a loophole in security system)
- Ransomware (takeover and encoding of the data in order to blackmail)
The most commonly used collaterals are antivirus software, penetration tests, safety audits leading to the detailed reports and preventative training of the staff. In September 2019 the additional protection to mobile banking has been introduced — one-time password being sent by SMS to the number given at the registration. Also, the customer can set a chosen browser as trusted — all of those means having the same goal — to avoid usage of the account in case of personal data leak or theft.
Mobile Banking popularity is increasing every year and becoming the most popular way of everyday usage of the modern banking system. Smartphones and smartwatches, combined with appealing applications, are becoming more important than computers in accessing personal accounts. The study of CACI from 2019 shows that the proportion of customers using apps for banking in UK oscillates around 45% and will reach 71% in 2024.
More and more bank applications use Augmented Reality. Using this technology, you can open a new deposit with attractive rates or take the loan by scanning QR code. Developing AR technology offers a multitude of possibilities in placing promotions in mobile banking.
A confidential profile is a modern version of a traditional signature. It allows you to handle a lot of things remotely (without leaving home). The confidential profile provides nearly limitless opportunities. In combination with geo-localization, it is possible to create a perfectly personalized offer for every client. It allows searching for the nearest open bank department, ATM, or partner in a promotional campaign. By tracking the route of the client, banks can get to know their schedules.
Thanks to the PSD2 directive banks can share the client’s data to the other companies. Because of that technology (P2P) companies can create new products and services tailored to customers needs. It’s also possible to offer the client the possibility to use the additional services (for example legal services or accounting services).
This technology is based on peer — to — peer chain and works without using a computer database, management systems, or verifying transactions systems. Paradoxically thanks to complicated encryption tools the book of data is open to everyone but is also protected against unauthorized access. That’s why 77% of banks in Europe plan to invest in open banking initiatives for their commercial customers.
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