Being an integral part of the service industry, it has become critical for banks to upgrade their security norms time and again. And they are doing so rightly with the use of modern technology. Modern technology has rebooted insecure and unreliable safety standards in the banking industry to such an extent that people no longer rely on PINs, passwords, and other knowledge-based authentication factors.

Earlier, as per studies, 66% of the Americans reused the same passwords for online banking, social media networks, and emails. The same studies showed that 75% of individuals face trouble remembering their passwords. But things have changed for the good, and these authentication relics can no longer be forgotten, stolen, or hacked, all thanks to modern technology.

Modern Technology is Improving Safety in the Banking Industry

To improve the security of their institutions and the trust of their clients, banks and other companies in the financial sector are making the most of new technologies. These distinctive technological solutions have also given the industry a competitive advantage. Now, they are developing faster with a greater emphasis on leveraging sophisticated technology to improve safety, security, reach, and productivity.

Following are the ways by which modern tech is improving the safety in banking industry:

1. Data Engineering and Financial Markets

Big data is hugely impactful in the financial services market, making it crucial for data engineers to offer their services in the banking industry. AWS data engineering involves constructing and testing data to be used productively in any business.

In the banking industry, data engineers regularly gather and clean data to automate the trade. Furthermore, there are various other ways modern data engineering technology is helping the banking industry.

By providing clean data sets devoid of all errors, data engineers are helping investors avoid continued losses. Data engineers also help firms make safe and informed decisions when investing in the banking industry. They do this through predictive analytics that helps investors foresee data patterns and make investments accordingly.

The best help from the data engineers comes in the fraud detection area, where they check and clean data to detect if certain hackers have hacked into the system and made available data unfit or malicious to be fed into the predictive structure.

2. AI for Safer Transactions

As per studies by Javelin Strategy, there’s an identity theft every 2 seconds in the banking industry. And such incidences have constantly been rising with the fraudsters getting more tech-savvy. Statista reports show an increase of 17% in identity theft in 2019. The numbers are quite scary, both for the customers and the banks. But modern banking solutions have the technology to help mitigate the risks for their customers.

With machine learning and AI or artificial intelligence, banks now have specific real-time models to detect irregular activities. With this same technology, it has also become possible for financial institutions to block suspicious transactions even before they occur.

Likewise, biometrics has made it incredibly difficult for criminals to steal an individual’s biological makeup. Additionally, biometrics reduces the chances of social engineering for call center executives. Biometrics is also useful in detecting fraudulent interactions the moment they occur, giving institutions the scope to stop fraudsters on their tracks.

In its varied forms, artificial intelligence has been extremely beneficial in fraud prevention by letting financial organizations use algorithms to identify suspicious activities.

Use of IoT in Safety and Authentication in the Banking Sector

IoT wearables are widely used in the banking industry to boost security and safety. For example, smart wristbands use an individual’s heartbeat for biometric authentication. This modern technology is also considered safe for making cordless settlements within the banking industry.

• Improved Cyber Security

The banking industry deals with personal and sensitive information making it an attractive target for cybercriminals. However, modern technology has mitigated cyber risk to a considerable extent in the banking sector. Now the banks have become more agile in the way they approach cyber-security.

More and more banks are implementing highly advanced real-time analytic biometrics, behavioral analysis, and monitoring software to identify threats. Not only this, but they are also using modern technology to stop these threats from disrupting their systems. Financial institutions are using anti-hacking tools that offer network-level security that keeps looking for potential cyber-attacks and unusual behaviors

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• Complete Customer Data Protection through Cloud Computing

Cloud computing is yet another major technological advancement that has completely revolutionized safety in the banking sector. Cloud-one of the most significant tools of the service delivery structure enables banks to grab new business scopes and access new delivery channels. Banks are now using cloud-based solutions to decrease the cost of data storage and even to ensure customer data protection. Superior-level Cloud computing promotes safe and secures digital money transfers, online payments, and online payments.

• Enhanced Security with Blockchain

Banks are also using Blockchain technology increasingly to undertake different risk management practices. Blockchain technology in banking has also made it hard for hackers to accumulate confidential information like customers’ bank details. The banking industry is also experimenting with this technology by duplicating present asset transactions on Blockchain. This has helped the institutions improve efficiency, enhance security and make quicker transactions with reduced costs.

• Enhanced Security of Mobile Apps

Nowadays, more and more banking customers use mobile apps for all their transactions and day-to-day services. As per reports by Federal Reserve, 43% of mobile phone users with bank accounts use mobile apps for all their requirements, which is up from the numbers in 2013 and 2014: 33% and 39%, respectively.

With more individuals using mobile devices for banking purposes, banks continually update their mobile apps and even add biometric security solutions, including touch ID. Such technological additions help keep the customer’s accounts safe and improve customer experience by letting them access their accounts.

Conclusion

Modern technology has changed the face of the banking industry. Banking procedures are now much more reliable, safer, and faster, which has further improved customer relations with banks. Still, you must do more, specifically when safeguarding customers against fraud. With billions of dollars at risk yearly, financial organizations cannot afford to let fraudsters go undetected. Banks and other financial institutions can keep losses to the minimum by turning to modern technology solutions and creating safe and exclusive customer interactions.