There’s so much noise around AI and automation today, it’s tough to separate the hype from the truth. The topic of how AI and automation have transformed and will transform banking in the future is too broad for a blog such as this. Let’s narrow our focus and look at how AI and automation may affect banking security.
Banking Security
There are few sectors for which security is as important as banking. And there are few sectors that are the focus of such high levels of criminal activity, both cyber and real-life.
Automation, AI and Security
You can read tons of articles online about how automation has revolutionized stock trading or how banking firms are using AI to determine which futures or derivatives to invest in, and whether this is all good or bad or both. If you work in finance, this might interest you, but very little of this information is useful to the average person who just wants to know what to do with their own finances.
Security does affect your finances, so this is an area that might actually have some useful, relatable information. You want to keep your money safe and bank with a company that can help keep your money safe. So how are banks using AI and automation to do this? Here are some ways:
Real-Time Fraud Detection
Banks have been good at identifying fraud retrospectively for a long time, but that’s not nearly as helpful as flagging it in real time. AI algorithms can analyze vast amounts of transaction data instantaneously. This enables the detection of anomalous patterns that betray fraudulent activity. And machine learning allows these systems to keep learning and adapting to fraud tactics.
Smart Authentication Systems
Fraudsters and cybercriminals are getting progressively more sophisticated, so banks have to, as well. Smart authentication is a great, intelligent defense system. This doesn’t just mean having to sign in via two-factor authentication every time you log into your bank account or jump through other hoops.
AI can adjust security requirements based on the risk associated with a transaction. So, if you log in to check your bank account from your home Wi-Fi? No problem. If “you” try to transfer all your savings to an account registered in Uzbekistan? The AI can shut that transaction down.
Enhanced Cybersecurity and Risk Assessment
AI-powered systems can scan financial networks to identify and neutralize threats in real time. But speed is only part of the equation here. AI software can look at way more than just your personal transactions. AI can analyze a vast range of data to create highly accurate risk profiles. This can improve credit scoring and loan assessments. The use of AI also reduces the risk of human error. This can increase accuracy and potentially help with regulatory compliance.
Vectra Helps Protect Your Money
Vectra takes security seriously, and we help keep our clients’ money safe. To learn more about our security measures, contact a Vectra Bank professional today.
