siliconindia's Webinar on FinTech Highlights the Transformative Terrains Finance Sector is Undergoing
Finance and technology has been going hand-in-hand since long. However the integration of technology in the finance sector wasn’t as strong as it is now. But as on one side this integration has brought seamless power to the financial institutes, on the other hand it has resulted in spike of cyberattacks on these institutions. Even companies and individuals are experiencing a spike in cyberattacks. siliconindia’s webinar on ‘Building Tech-Friendly Finance Sector’ discussed this very rising concern along with other factors impacting the sector.
siliconindia webinar was graced by eminent speakers from the fintech industry – Gurbans S Chatwal, Vice President, Innovation and Intelligent Automation, Fiserv Global Services; and Bharat Panchal, Chief Risk Officer - India, Middle-East & Africa, FIS.
Gurbans highlighted, “The four areas from our perspective that are on top of everyone’s mind and also driving a lot of activity within the fintech space are – risk management, analytics, digital adoption and operational efficiency. Everyone has gone digital.
From a money flow and a money transaction perspective, people have started using multiple channels. Things are becoming more borderless and more real-time. So the fraud can go across different channels like cards, bank, lending to mortgage and digital wallets. There are wide variety of channels that can go with different identities and people can hop across and commit frauds, which were difficult earlier. Real-time, complex event processing and AI-based technologies are leveraged to mitigate such cross-channel frauds.
Fraud prevention moves to all digital applications and authoritative data is becoming key rather than documents. Risk exposure calculations are now global with a need to explore ‘tail risks’ and mild adverse scenarios to improve contingency, reserves/collateral planning.”
“Measuring digital engagement and experience is key. Hence data analytics and predictive intelligence are leveraged to transform customer journeys and to retain and engage valuable customers. Analytics even help mitigate customer inactivity and churn by identifying customer segments most likely to be affected by COVID-19 and determine how best to support them. In the coming days, digital adoption will be at anytime high with digital banks ushering in next-gen account opening methods.
On the other hand, process automation (through bots) and conversational interfaced (chatbots) are taking us towards low cost, low touch and at home digital options. While their will be emergence of global, multi-channel payment platforms for quick money transfers,” he further added.
Talking about cyber security in financial system and way forward, Bharat mentioned, “We have fear in our mind that there definitely is something wrong, and I am quite positive about risk as it helps recognize the issues at the right time and take appropriate actions. Risks help improvise new methods, techniques and tools to secure better monitoring and providing for a feed-forward system.
We have entered a new age of cyber fraud with digital explosion which offers a variety of financial offerings, channels of initiation & fulfillment and speed of fulfillment。 However, in the current times the fraud landscape has changed – from technology exploitation, mis-sales frauds to social services/charity。”
“Attackers use different methods to acquire sensitive information such as PAN details and personal information, and through sniffing, they can even capture credentials that travel between two networks. On the other hand, many systems have not been designed with security in mind, making it possible to hack into via smartphone or machine. The industry has to deal with challenges akin to escalating attacks, increasing complexity and resource constraints.
Hence we need to create an ecosystem of risk management by creating a conversed framework for governance, risks and controls. We also need to create a layered security for a secure enterprise. To enable this, we need to do risk management in a collaborative approach – robust internal governance, collaboration with fintech and investment in advance technology & tools,” he adds.
Bharat also spoke about the seven simple rules to safeguard oneself from any cyber-risk – physical security, two-factor authentication, encrypt sensitive data, being vigilant, patching promptly, making people your first line of defence and keep data only on a need-to-know basis.
The webinar also discussed about the various measures to secure financial institutions from any kind of breach, or cyberattacks including ramsomware。