FinTech Security trends with Daniele Marinelli: what about latest big data and crypto cyber security topics?
The pandemic has hit the vast majority of businesses and companies all around the world. Those companies have found themselves forced to change their business and work model to allow their workers to operate exclusively from their homes to keep them safe.
One of the sectors that had to adapt to this new course is the financial sector, with an increasing use of financial technologies or FinTech. By Fintech we mean all those technologies that have the purpose of facilitating the processes of digital financial services, a need that has become even more important in the last years.
Daniele Marinelli: Threats to FinTech and possible solutions
However, in this new scenario, one thing not to be underestimated is the various cyber threats and attacks that have hit all companies, especially FinTech ones, in the last two years. In order to deal with these new types of threats it is essential for FinTech companies to equip themselves with higher security mechanisms to fight the increasingly frequent cyber attacks.In the next part of the article we will talk about some of newest trends regarding FinTech security:
- Blockchain technologies
- RegTech
- Fraud Detection AI
Blockchain technologies
One of the solutions that will surely be among the most used in the future will be to use blockchain technologies by fintechs. Thanks to Blockchain technologies, it will be possible to increase the level of data security, especially thanks to the decentralization of information. In addition, their ability to organize data into blocks, and the fact that each block of information is strictly linked to the previous block, makes it much more difficult to become victims of cyber attacks. This way, fintechs will be able to store important data in a series of blocks chained together to make their most important and sensitive information inviolable.
RegTech
RegTech means the technological management of all those processes that concern the regulation of the financial sector. Among its main objectives we find regulatory control and other monitoring operations. RegTech is based on cloud computing technology and will be used in the FinTech sector to comply with rules and regulations, especially thanks to its main feature, namely automated learning. In fact, thanks to RegTech it will be possible to increase the level of security of transactions by monitoring any improprieties or irregularities, also highlighting any weaknesses and possible threats.
Fraud Detection AI
Using Artificial intelligence to fight fraud and other irregularities may look like science fiction, however, we are not so far from fantasy. In fact, using AI to fight fraud and such attacks will play a central role to protect FinTech and other technologies. It seems only natural to use only the best and most advanced AI to prevent fraud and other financial crimes.
But how will artificial intelligence solve this problem? It usually analyses all the information linked to customers to detect possible breaches and other dangers. In this way, it can really highlight weaknesses and power up the security level of a FinTech whose services are increasingly important in our society.
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Conclusion
The last few years have been really harsh for everyone, but especially for businesses and shops, which had to adapt to new models in order to be able to survive. However, If History Has Taught Us Anything, is that we achieve the greatest results and development after particularly difficult events and this pandemic can be truly defined as a huge moment of crisis. So these years have been the trigger for an important evolution, both financial and technological, that from now on will be benefiting everyone involved in those fields of business.
The future of finance and economy will gradually become more and more digital, with a clear cut from the more traditional ways. “And metaverse – says Daniele Marinelli – will become the new frontier where any business will be able to provide an entirely different customer experience for its clients”.
If we see there the integration of operations such as payments and bank transfers, or any other commercial and financial transaction, we will have to provide an inviolable digital id to keep customers one hundred percent safe and we will need a proper regulation in place.
Talking of these new trends one of the main issues is indeed to get a proper and universally shared regulation that will grant a good integration between the more traditional ways and the new ones.
Only so we’ll see the greatest benefits for the different actors.