New Delhi, Aug 7 : Banks across the world are expected to invest another $31 billion for artificial intelligence (AI) integrated in the existing system by 2025 to cut down on fraud according to a report.As for bank executives across the globe fraud management is highlighted heavily as a top priority, as the IDC report noted.
“In the course of developing with new digital offerings and services, as well as new channels, and even new payment methods, companies could be underestimating the effectiveness of their current security measures to guard against fraud” stated Michael Araneta the Associate Vice President of IDC Financial Insights.
“What worked before was not enough in the ever-changing technological business world of business.
There must be an ongoing upgrade of the capabilities for managing fraud,” Araneta added.
The financial sector is in two crisis scenarios, with each of which requires solutions that could conflict with each other.
“Government policy has to be flexible and financial service institutions such as banks, insurers capital market firms, banksmust be able to balance the pursuit of revenues and the management of risk,” said Araneta.
In 2023, the business will also be involved in platform-building which permits the financial services to be extended and externalised to third-party providers.
“The industry is exploring new collaborations, such as banking as a service (BaaS) and digital lifestyle ecosystems.It is evident that being digital-first implies being aware of the unique moment in the revival of the financial sector,” Araneta added.
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