Banking sector is deemed as the secure department for the flow of cash. People believe that they should roll their amounts through a bank. It makes them feel safe. Finance industry produced 7.25 OF U.S. GDP in 2014. Banks are operating days and nights to render a secure environment for their customers and according to the call of customers, they are striving to automate the whole system. Many bank departments are working automatically through the help of AI-based equipment but still, much of human interaction is involved. For risk management, banks must implement very strong algorithms. Banks must deter, detect and prevent frauds to increase clientele for their sector. As complexity in the finance industry is increasing day by day and this industry had made multiple transmutations including installation of advanced technologies. Due to much complexity in the financial sector, it is necessary for banks to remove the maximum risk, As multiple stakeholders from different backgrounds are influencing banks.
Risks Faced By Banks in 2019
What do scammers want from businesses or individuals? Their intention is always money, either they are stealing your info or whatever. They are all doing this for money. In 2019 Financial sectors faced many risks due to advancements of hackers in the field of AI. With the help of APP Authorised Pushed Payments in 2018 approximately 34,000 accounts were commandeered only in the UK. In South London, a fraudster did a scam of 200,000 pounds. Risks faced by the banking sector increased the need for software which could help banks to increase security. Risks faced by banks include:
- Credit Risk: If a borrower fails to return credit as it was decided in terms, it is known as credit risk. It can be prevented easily by checking the previous record of the borrower if he still contains payables of any other banks or financial institutes.
- Compliance Risk
- Market risk
- Cybersecurity Risk and Money laundering risk.
Tools to increase security
Due to the growing proportion of cyber scams, every business is concerned with cybersecurity and notably, banks are more concerned about this as they have intimate data of businesses and individuals. They are procuring multiple solutions to create a cyber risk-free environment and Anti Money Laundering. As many regulatory like MAS in Singapore and FFIEC in the U.S. made it mandatory to follow the guidelines for Anti Money Laundering and they are providing templates for assistance. Following these guidelines and installing software to avoid scamming can help companies to stop doing businesses with corrupt persons or illegal businesses. Banks must use one of the top AML software for banks to combat money laundering as it is intolerable. In Anti Money laundering to qualify for inclusion, a software must deliver standard reports for compliance and documents. Top tools to strengthen security against cyber attacks in banks and to avoid money laundering include:
1- Cybersecurity assessment tool
2- Anti Money Laundering Software
3-Technology Risk Management
These tools are very effective for financial sectors to perform immeasurables, to stop cyber attacks and money laundering. Federal Financial Institutions Examination Council is establishing awareness for the cybersecurity risks, through Cybersecurity Assessment tool financial institution can interpret the stats for cybersecurity and can take requisite measures. Top AML Software For Banks can assist institutions to stop money laundering by matching particular data in lists of suspicious organizations or individuals and provide the best models to find a match. Technology Risk Management is the best tool that can help financial companies in Security exchanges, insurance and other departments to boost system.