Cybersecurity in Finance

You, your information, and your work are now part of an ever-growing digital world. And consequently, face being exposed to an increasing range of threats. And so, with all these technological changes to the way we conduct business and live our lives, it is more important than ever to make sure we are adequately protected online. Therefore, this article will explore how we can use some of these new technologies safely.

We will explore the latest trends within the fintech industry that we believe will become an increasingly significant part of our daily lives in 2022. Before we do so, let us briefly look at why cybersecurity is so important.

4 trends that will shape the financial industry

1. Digital banking – money moving in new circles

The impact of COVID-19 and the acclimatization of society to new software and apps for paying bills and wages have brought forth the rise of online banking. As the need for conventional or brick-and-mortar banks diminishes, more and more people, especially the young, favor the convenience and swiftness of digital banking.

According to Boston Consulting Group's (BCG) survey, 44% of 18-34-year-olds across 15 countries enrolled in online or mobile banking for the first time during COVID-19. The move away from paper-based currency will only increase as future generations will be more inclined to accept digital solutions to solve everyday problems. However, online banking does not come without potential threats.

With a range of vital personal information available to potential cybercriminals, digital banks must adhere to strict cybersecurity protocols, artificial intelligence, or biometrics to safeguard you and your details.

2. E-commerce – more shops have gone online

Because of COVID-19, businesses have been forced to bring face-to-face interaction with customers to a halt. Many companies have focused on selling products and goods online to maintain business, and protect revenue streams and workers' jobs.

This digitalization has helped keep many companies afloat, and for consumers, it has provided them with an effortless way of shopping. This move has seen an explosion of online sales across many sectors.

A UNCTAD and NetComm survey of 3,700 consumers across several countries saw that online purchases increased by 6-10% across most product categories. This drives change to the way we shop online such as new payment systems to make it more accessible. However, this increased desire for e-commerce solutions to do shopping needs to be adequately protected. The websites you access to complete transactions, your information, including passwords, and the internet usage data you share on these sites, need to be safeguarded with solid cybersecurity measures.

3. New ways to pay for a new world

Digital currencies

The Internet is constantly ablaze with the latest trend in cryptocurrencies. Through Blockchain technology, the use of digital currencies allows for transactions to be anonymous and encrypted. To support such protection, they require high cybersecurity levels to protect the information, and privacy and prevent theft.

Contactless payments

We are undergoing a significant shift toward contactless payments. A decreasing desire to carry paper money has led people toward a form of payment that can be as simple as a tap on a cell phone. Which has seen contactless payments go from an option to a near necessity for digitally aware individuals. Consequently, it has resulted in a growing selection of digital payment platforms from giants like Google, Apple, and WeChat to cater to this rising demand for swift and socially distanced payments. With this, however, contactless payments require stringent cybersecurity measures.

With a growing comfort among customers to purchase goods via their cell phones, safeguarding strategies that protect the individual and their financial details are necessary in case of loss of their phone, or the cell phone being compromised by a cyber-attack. Possible measures to ensure security could be granting access based on facial recognition or fingerprints to provide reliable solutions.

4. Hello AI

How it is used by banks and financial institutions varies. Whether it is providing 24/7 dedicated customer support, fraud prevention systems, or verifying the authenticity of KYC (Know Your Customer) documents, AI provides sophisticated and accurate functionalities. As AI continues to expand and learn, its capacity to support human beings will grow significantly, benefiting consumers. It will soon perform complex automation processes in a secure manner that protects the user. Expect AI to fulfill many vital roles as we progress through the decade.

So, with the above-mentioned trends changing the way we conduct ourselves in our daily life, it is the businesses’ responsibility to protect their customers from danger. It is of paramount importance for any business to have a secure environment for its customers, employees, and the company in general. Just like you would want an office or building that is safe, your online security should be a number one priority.

We encourage you to read our Executive Brief on this topic, which you can find here.