When we talk about financial security, there are a few questions that come to mind – what should be the main concerns of any customer? Are banks safe anymore? What are financial services doing for security? It is the time we ask these questions.
In a post-pandemic world, as countries face a major economic crisis, there are a number of problems that have come up. There have been reports talking about the changing framework of the technological aspects of any financial service.
The broader perspective of financial technology, popularly termed Fintech, has a huge number of developments every year. With the introduction of AI and new age Blockchain systems, there has been a clear awareness created among customers. Fintech is primarily aimed to change the traditional concepts of financial security – combining innovation and technology by experts.
Big changes expected in the finance industry
In the year 2021, there have been a lot of new changes that are marking the finance industry. Some of the most crucial trends in security that should be remembered are:
AI Fraud Detection: The use of Artificial Intelligence in various industries for different purposes is without a doubt, the new trend. Financial giants like MasterCard has implemented AI technologies for client analysis, data collection and breach of security. 5G connectivity and IoT devices are being used in banking services more than ever before. These updated technologies can change the face of security with developments catering to customers.
Cloud Storage: With the rising number of customers and the different information that has to be stored, the finance industry is shifting to multi-cloud storage. The data management and analysis of potential clients can be a tricky thing when it has to be done on a single cloud. But with the multi-cloud system, it is much more feasible to handle the crowd that comes in with introducing new services.
New Regtech: One of the most important trends that have come in financial security is the implementation of Regulatory Technologies (Regtech). Regtech helps to manage all kinds of cybersecurity regulations which can help in fintech security. It is designed to manage the huge data usage by fintech and keeps the whole industry in line with the government standards.
Blockchain Systems: The requirement in fintech is decentralised data flow. In terms of global finance, easy but secure transactions, usage of cryptocurrency by preventing hackers and implementing encryption systems in all networks are the major concerns.
The two greatest positive effects of fintech being introduced to the mainstream financial industry are – a reputation among all customers for any sector. With new-age technologies, more people are willing to place their trust in their financial matters. Secondly, Fintech has become a great scope for employment. New-age tech professionals have a place to showcase their expertise in a field. AI Engineers, data analysts, and system developers all have a place to work and improve upon systems that are catering to millions of people at the same time. The use of modern technology has been making the financial industry an inclusive and innovative place to be in – for the service providers as well as customers.