The banking market continues to evolve through the growing use of digital and mobile devices, as more branch operations aim to enhance convenience and service for the customer. These advancements also create more significant opportunities for fraud and loss.
Together, these two trends come full circle: Increasingly sophisticated fraud techniques require organisations to pursue new approaches to preventing and detecting such activities.
Digital transformation
But before we lead down that path, let’s look back. COVID-19 impacted the banking sector in more ways than we could have imagined. The industry, which was already embracing digital transformation through the increasing shift to mobile and online services, fundamentally changed in multiple ways.
Like many other businesses, banks were forced to temporarily close the doors to their retail branches and adopt a remote work structure during government lockdowns.
New normal
Banks are transitioning many of their services to the digital realm because consumers have embraced new ways
Even as we move back to what we know as “normal”, it's clear that banks are forever changed post-pandemic.
To address the new normal and changing operational challenges, banks are transitioning many of their services to the digital realm because post-pandemic consumers have embraced new ways of engaging with banks. Let's take a closer look at how the industry is looking to the future.
The IoT is the new ABC
It's no secret that organisations globally embrace the benefits of the IoT across their infrastructure. Around the world, businesses are leveraging the power of network-connected devices to improve customer engagement, deliver remote services, and support work-from-home processes.
The IoT has brought a plethora of functionality to big businesses, and it's been an enormous benefit to consumers. The promise of anything is possible with connection has become a reality.
Improve customer service
Many financial innovations successfully use IoT solutions to improve customer service
Banking is no exception. Although the IoT has been a topic of interest for two decades, it's just coming of age today.
We’re seeing many financial innovations successfully use IoT solutions (think mobile payments and point-of-sale devices like Square) to build capabilities and improve customer service, and greater adoption is right around the corner.
And then there were ATMs
Take ATMs, for example. There are more than 3.5 million cash machines worldwide, and they are more intelligent than ever before. The services ATMs provide have become increasingly sophisticated and deliver far more benefits than dispensing cash.
Network connectivity allows banks to deploy ATMs into new and exciting locations and offer more services. ATMs are not just owned and operated by banks, a wide range of independent ATM providers place them in airports, shopping centres, convenience stores, and more.
Hook and chain attacks
The COVID-19 pandemic opened the door to opportunistic criminals who developed a new way to breach ATMs
But as the use of services delivered by ATMs increases, crime increases as well. Unfortunately, the COVID-19 pandemic opened the door to opportunistic criminals who developed a new way to breach ATMs.
The low-risk and high-reward nature of ATM "hook and chain" attacks were reported in major cities in the US, leading to significant losses and in the UK “Transactional Reversal Fraud (TRF)” continues to plague banks.
Holistic security plan
Thankfully, there are myriad ways to combat these attacks and technology plays a key part. It's imperative to have a holistic security plan that incorporates technology as a force multiplier to mitigate these risks before they cause more significant damage.
You can no longer rely on traditional methods, criminals are becoming more sophisticated, and security must follow suit to protect assets, data, and people.
COVID-19 also brought an opportunity for fraudsters to take advantage of the remote work landscape.
Some banks closed branches or had limited staffing, leading to looting or vandalism at branches. Collectively these new security risks propelled banks to re-think how technology can help them navigate these new risks and the evolving business landscape.
Eyes up
Businesses with comprehensive plans are in a stronger position to withstand trouble
Part of the reason for re-evaluating plans is the pandemic's long-term effects. No one could have imagined the impact it left behind, and leaders now seek to ensure their teams are ready for any future operational disruptions.
Simply planning for digitalisation isn't a blueprint for success, but businesses with comprehensive plans are in a stronger position to withstand trouble.
The threat of fraud and cyber risks
The IoT and digital transformation enhance an organisation's ability to mitigate the increasingly significant threat of fraud and cyber risks. While new threats, like transactional reversal theft, will remain to evolve, the world of connected devices will play an essential role in helping such incidents.
It's become increasingly clear that connections, intelligence, and communications will be the key to future success for many organisations. The IoT will drive additional capabilities, and only time will show what those will be.
- Network / IP
- Biometrics
- Retail surveillance
- Digital video surveillance
- Retail security systems
- Shop security systems
- Mall security
- Commercial security
- Shopping centre security
- Security management
- Security installation
- Security monitoring system
- Radio frequency Identification
- Video analytics
- Store security
- Store surveillance
- Industrial security systems
- Retail security
- Network cameras
- Security software
- Security service
- Industrial surveillance
- Integration software
- Cyber security
- Crime prevention
- Internet of Things (IoT)
- Crowd Management
- Corporate Security
- Data Security
- Digital Video Recorders
- Cloud security
- COVID-19
- Mergers & Acquisitions
