We hear a lot about digital transformation in financial services today, but what does it really mean in terms of opportunities to win and keep customers? Where will financial institutions (FIs) find the most promising digital channels? How will they manage digital risk? And what role will technology play in securing digital transformation? Here are five key areas where opportunity abounds and risk can be managed, as long as you have the right tools.
1. FinTech: Beating the startups (and upstarts) at their own game
FinTech offers many innovative digital alternatives to traditional financial services offerings in banking, payments, insurance and other areas—and traditional banks and insurers are feeling the pressure. To compete or not to compete: that is the question. When the alternative is to risk losing business to the new kids on the block, the answer just may be to provide more of the kinds of digital services FinTech companies offer (How? Read on!)
What’s the downside? A higher risk of fraud resulting from creating more channels for doing financial business. To manage fraud risk on a far bigger scale, financial services providers will require next-generation authentication that challenges transactions based on the degree of risk they present, so as to be less intrusive to customers conducting legitimate transactions.
2. API economy: On the other hand—if you can’t beat ‘em, join ‘em
What if, instead of developing technology to compete with FinTechs, FIs partnered with them on new services? FinTech companies can bring the latest technology, FIs (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/2018-07/five-ways-to-maximize-opportunity-in-the-digital-banking-era.html