The rise of digital banking and the security concerns around it.

The rapid evolution of digital banking is helping the customers have more convenience in managing their finances through online markets. Allowing them to finish the tasks within days which before took weeks to accomplish. Also these advancements is a plethora of security risks that the firms must address in order to continue delivering the best, safe experience to their customers.

With the COVID regulations preventing from going to banks and branch activities being restricted, the acceleration shift of online activities can be seen, further reducing the in-person engagement. Mobile banking and online usage has skyrocketed since the onset of pandemic, which has immensely impacted digital banking and forecasts a 10% rise in global market at CARG between 2019-2026, generating revenue of $1,702.4 million during the period.

Banks need to ensure the staff is well trained, equipped with potential security risks and sufficiently responding to them. Banks have a critical role to play in communicating the appropriate security procedures that are in place.

With a range of opinions at disposal to play against the cyber criminals, multi-factor authentication is proving to be highly effective. An additional form of identification with a regular text message is required. Most popular forms are OTPs (one time passwords) in preventing frauds. This way the highly equipped hacker also is unlikely to stand a chance to be in possession of the sensitive data of the customers. Some form biometrics can also come in practice for further authentications to verify user’s identification.