Financial Fraud in the Digital Banking Age

Banking-as-a-service, or BaaS, is the new reality (and no, it’s not a new kind of phish).  Digital banking is growing fast, and by 2021 it is expected that three billion users will access financial services from a smartphone, tablet, PC or smartwatch.  In today’s technological world, financial services – be it loans, deposits, e-commerce, and things we haven’t thought of yet – can be provided in a digital, user-centric, and operationally efficient way.

A number of significant technological trends are impacting the financial industry and propelling the digitalization of banking.  The first is the digital consumer. Today’s consumer expects frictionless digital services in all aspects of life, including banking. In fact, Bank of America’s client-facing technology CIO, Hari Gopalkrishnan, said that “customers don’t benchmark us against banks, they benchmark us against Uber and Amazon.”  Consumers today are creating huge demand for digital services, and this is resonating with financial institutions too—if you ask any financial services CEO what is at the top of her agenda, she’ll tell you it is making the bank a technology company.

The second market force is FinTech; startup companies across the globe that are stretching the limits of digital banking. Innovating in areas of crowd-sourcing/funding, peer-to-peer lending, blockchains, and much more. And if you consider our banking CEO, FinTechs represent significant competitive pressure on her business to innovate and provide the same level of digital service.

The third trend is regulation, and specifically, those around open banking such as the (Read more...)

*** This is a Security Bloggers Network syndicated blog from RSA Blog authored by Daniel Cohen. Read the original post at: http://www.rsa.com/en-us/blog/2018-01/financial-fraud-in-digital-banking-age.html