Short on time? Here’s an overview:
Financial institutions that move from a reactive to a proactive approach for fraud detection will be better positioned to build trust with their customers and stay a step ahead of rapidly evolving and increasingly complex cyber threats. To do that, financial institutions must embrace technologies like AI and machine learning to drive better customer experiences and combat fraud in a systemic manner. Doing so will increase employee productivity and strengthen consumer trust, which leads to greater loyalty and happier customers.
2021 is unique in that we’ve lived a full year in “the new normal,” and with that came significant changes. Cloud computing helped function as a catalyst for digital banking transformation, as more people needed to work and bank from home. At the same time, as more of our lives, transactions and ways of connecting moved online, the security of all these interactions has become increasingly important. It’s safe to say the financial services industry has entered the era of the AI digital marathon.
The Unisys Security Index™ surveyed 11,000 people across 11 countries on a wide range of issues including personal, financial, national and internet security concerns.
Of the eight areas of concern measured, the 2021 results show that bankcard fraud ranks number two, up four points when compared to 2020 results. More concerning is that 49% of respondents do not trust their financial institution to alert them of suspicious activity on their account.
Artificial Intelligence (AI)
What is AI? Artificial intelligence (AI) is the overall science of using computers or machines to solve problems that are usually done by humans with our natural intelligence. Machine learning is a subfield of artificial intelligence. At the most basic level, machine learning recognizes patterns in data, and helps describe the process that generates data used to predict future behavior. Machine learning uses algorithms that iteratively learn from data, allowing computers to find insights without being programmed to do so.
The financial services industry has long been technology-dependent and data-intensive, and data-enabled AI technology can drive innovation further and faster than we ever imagined. AI helps improve efficiency, enable growth, manage risk, and most importantly makes a world of difference for customer experiences. Once expensive, AI systems are now becoming more the norm, with cost and barriers to adoption falling. What we see are financial institutions making targeting investments in cloud, big data, and data applications such as microservices, eliminating the capital investment needed to develop, deploy, and scale AI solutions. One of the ways in which financial institutions have embraced AI in their customer service operations is via chat bots and conversational banking.