How Is FinTech Helping To Tackle Banking Frauds?
Banking and financial institutions have been working on traditional models for many years before the use of advanced technologies like Machine Learning or Artificial Intelligence to avoid fraud or scams. Nowadays, banking tech services are changing the financial transaction scenario in banks. Before customers were scammed with their digital payments or they were losing their confidential card credentials.
With the use of Fintech, the banking and financial institutions are witnessing significant changes as digital transformation is emerging in the scenes. Let us now see how technology is helping to curb the scams.
Use of AI-Based Software
Many banks are using AI-based software to help their customers with financial goals, advice on saving and investments according to their budgetary requirements, and expenditure too. Along with these services, security is a significant factor that financial institutes are looking forward to. The key feature of the AI algorithm includes its potential of analyzing large amount of transactions and identifies any malicious activities.
Such algorithms include various factors like the pattern of customers’ transaction, location, type of devices, and much more. Furthermore, AI can detect the fraud within a couple of seconds and alert customers.
Upgrade Mobile Banking Apps
Mostly online frauds are committed through banking apps that lead to customers losing their hard-earned money. The vulnerabilities in the apps are leading to cyber attacks. To ensure there is an extra layer of security, the FinTech Industry is providing mobile in-app security as they cannot depend solely upon Android or iOS platforms’ security factors. The use of App-shielding features helps to monitor malicious behavior and alerts the bank and the customers. Moreover, the use of this security factor helps mobile banking to be secure and safe.
Support With Blockchain Technology
Blockchain is no longer an alien word for the banking and financial institutions. The use of Blockchain technology in banking and financial sectors is helping in curbing fraud since it uses Distributed Ledger Technology. This has made FinTech firms to provide Blockchain-based services to the banks. The customers have full anonymity and possess private keys. Only the consented parties to particular transactions having access to private keys can carry out the transactions over Blockchain. It will help in safeguarding consumers, and banking frauds and scams are also getting minimized.
FinTech is becoming the face of the banking industry since it helps banks as well as the customers to stay alert and safe. The continuous learning approach will help in making the banking platform workable and secure for the end-users.