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SIBOS 2022

10 Oct – 13 Oct  2022 | 9:00 am

Sibos 2022 returns to an in-person event centering on “Progressive finance for a changing world”, with over 250 speakers debating major industry topics including embracing the digital landscape, succeeding in uncertain times and driving sustainability and ethics.

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October 5-7, 2022  Hilton Barbados Resort

Join us to deep dive into the critical evolution underway in financial services and what it means to entrepreneurs, investors and financial institutions. Immerse yourself in the full Fintech Islands Experience (Fix). Beyond captivating speakers and cutting-edge exhibits.

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Oct 11, 2022 

Major players in FinTech are revolutionizing the customer experience with big data analytics and AI technology. From real-world use cases such as predictive modeling for fraud detection, risk assessment, customer experience enhancement, identity management, and much more, this Summit will share insights and strategies on how financial institutions can edge out the competition and provide winning CX with the latest in AI, ML and analytics.

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15 & 16 November, Accra Ghana

Africa’s financial services markets are among the most stimulating in the world. The banking and financial services market in Africa is the second-fastest-growing and second-most profitable of any global region, and a locus of innovation.

The West African financial sector has been witnessing a wave of digital innovation that has fuelled services and applications that had the potential to really shake up the banking sector.

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October 27, 2022 | Virtual

Chief Financial Officers are constantly evolving and taking on new responsibilities, especially in the face of disruption and unforeseen events. Along with their resilient teams, CFOs are looking back on lessons learned to better strategize and prepare for the future of their enterprise.

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November 9, 2022 | 2:00pm ET – 3:00pm ET

Paying the bills is a constant concern for every business, but it doesn’t have to be a headache. Automation can remove stress from your accounts payable (AP) processes by helping you reduce errors and accelerate your financial close. There are more options than ever before to use automation to streamline and improve your AP systems, but it can be hard to know where to start or what to do if you get stuck.

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Continuous advancements in fraud prevention software are needed to protect consumer funds as cybercriminals continue to adapt to new defenses imposed by banks, merchants, buyers, and processors. reason given. It’s a cat and mouse game. The goal of the game? Find and exploit the vulnerable link in the chain of defense.

Advanced technologies like machine learning have been deployed to go beyond humans by using past data to predict the activities of fraudsters, which most of them do. But the pandemic has left consumers vulnerable to economic instability, which in turn presents bright opportunities for criminals to exploit. Today, in the midst of a cost-of-living crisis, criminals don’t hesitate to exploit the weakest link in the chain: the consumer.

Evolve or lose: How fraudsters are adapting

First, let’s see how cheaters adapt stronger fraud defenses to exploit human connections. Traditionally, fraudsters have used unauthorized methods of fraud, where – according to the Federal Reserve’s Fraud Classification model – the fraudster uses a tool, such as performing unauthorized payments by card or control of a consumer’s account. Unauthorized fraud depends on finding a weak link in protecting a consumer’s account, such as a weak password, or breaking into a system to find a loophole in the defense.

On the other hand, an authorized fraud or scam is classified as manipulating the account holder in some way – whether by forging a relationship with them, impersonating a third party, or selling fake products or services. pose. This is often referred to as social engineering.

A new environment for new fraud methods

Identity theft scams are the most lucrative way scammers can adapt. UK Finance reports that in 2021, £583 million was stolen from UK consumers through authorized methods, including £214 million through identity theft scams.

During the nationwide shutdown caused by the pandemic, consumers turned to e-commerce for purchases, while governments responded by supporting people with COVID-19 relief packages. Scammers perceive people’s vulnerability as the weakest link and send fake text messages with malicious links to consumers, asking them to pay to have their packages delivered safely. The same goes for bailout packages, where scammers pose as the government and ask for bank details. In recent months, the cost of living crisis, caused in part by economic sanctions against Russia, has caused household spending to increase when it comes to paying for essentials like food. products and energy bills. The UK alone has seen a staggering 40-year high annual inflation rate of 9.4%. Many countries have relief programs to help consumers pay for heating and fuel increases. This has created a new opportunity for scammers to target people who owe energy suppliers, posing as debt collectors or government aid programs.

The rise of money mules

With the cost of living rising and consumers increasingly scrambling to pay essential bills, they are not only vulnerable to fraud but also employed as financial mules. The money the scammer has defrauded from the victim will be transferred to the account of a financial mule. Criminals often use social media to target consumers with ads to make a quick buck. Often, they can convince someone to accidentally put £1,000 of illicit money into their account by letting them keep £100. Usually, it’s the financial mule that gets taken away, not the scammer.

When can we put an end to the game of cat and mouse?

Cheats continue to adapt to the weaknesses that the world around us exposes. Everyone, even the most tech-savvy generations, is at risk. In places where there is less regulation of allowed scams and scams, than what currently exists for fraudulent practices, consumer education and vigilance are just the first steps. First to close the gap. Preventing scams will be a global, cross-industry effort just beginning.


From the first ATM in the 1960s to the rise of smartphones that led to mobile banking in the 2000s, and now the digital age bursting with super apps and fintech, The financial industry has evolved to improve the customer experience. While customers may choose a financial product or service because of its functionality and features, it is the user experience that keeps them engaged.

With the advent of thousands of fintech, customer expectations and financial needs have evolved. COVID-19 has fueled mass fintech adoption for consumers, with 88% of US consumers using technology to manage their finances by 2021. Remittance and payment services technology has most adopted by 75% of global consumers in 2019. With such growth, traditional offers are no longer enough. Consumers now need more personalized technology-based products, which forces fintechs to quickly adapt.

Offer streamlined and thoughtful API products

As the fintech industry grows and becomes more promising, more and more regulations and regulatory requirements await future industry players. In the event of new regulatory compliance changes requiring application system updates, customers will want to know how fintech providers plan to ensure that the user experience remains smooth.

That’s why many companies choose APIs as a simple solution to streamline their processes. APIs allow companies to easily integrate without making significant changes to their ecosystem and avoid confusion for customers following system updates. The advent of APIs has completely reshaped the future of the financial services industry by enabling partnerships between banks, fintech companies, and other financial service providers, such as financial planning. accounting or consulting. Depending on the needs, different API functions can be added to the enterprise system flexibly. These are the building blocks used to build solutions that include foreign exchange, repeat or one-time payments, and domestic or cross-border currency payments. In addition, a streamlined system speeds up operations through efficient machine communication, reducing losses due to human error. With APIs, companies can spend more time and resources creating more meaningful connections with customers.

Provide holistic solutions by tailoring offerings to meet customer expectations

In the past, traditional finance required physical contact to manually enter customer data and perform research to develop a custom solution. This time-consuming method is expensive and has been classified as a “premium service”. But now, digitization and modern technology have made hyper-personalization and integrated finance accessible to everyone with just a few clicks.

As the industry grows with more diverse customer profiles, businesses and organizations need to present more diverse products and services that meet different customer needs. This forces fintech providers to adapt to dynamic market conditions. Accessing customized solutions that meet specific customer expectations can make the fintech experience even more intimate.

In addition, fintech providers continue to focus on data-driven solutions. Eighty-six percent of banking consumers said they are willing to share their data for a better, more personalized experience, demonstrating that financial services such as Banking Services (BaaS) ) offer an unprecedented opportunity to collect data through their ecosystem. Major industry players are using new ways to collect user data and process that data to create better interaction models that will help differentiate their solutions for businesses and customers. . The fusion of cutting-edge technologies, global networks and financial experts can pave the way for fintech providers to create a complete suite of solutions on demand and gain trust.

Make digitalization more ‘human’

The human connection does not have to fall victim to smarter technology. It is important to support technology with a personal touch, encourage loyalty, and nurture relationships with customers.

Technology solutions that help businesses manage customer expectations and experiences. Meanwhile, they can also help key decision makers understand where and when human assistance is needed based on the number of user interactions with the technology. As a result, a business can leverage technological tools to create hyper-personalized experiences. Accessing quick support from a designated contact or a dedicated account manager greatly improves the user experience, especially when customers encounter difficulties. A balance between digital tools and human support is needed to retain customers and reduce disruption.


While financial data has always been considered sensitive, the growing number of companies working with sensitive data has brought renewed attention to the issue.

Financial institutions are among the most targeted by hackers due to the large amount of critical customer data they handle. Any loss of personally identifiable information (PII) can lead to lawsuits, fines, and irreparable brand damage.

For this reason, the financial services industry is often hesitant to share data and collaborate. With the rapid rise of digital fraud since the start of the pandemic, it’s time for financial institutions to reevaluate their options. Confidential Computing is a new approach to data encryption that helps the financial industry protect PII and fight digital fraud through collaboration.

The value of secret computation

Although protocols exist to protect data in transit (in transit over a network connection) and at rest (in storage and databases), only secret computation solves the security problem. important data by encrypting the data in use – during processing or execution.

Sensitive data is handled in hardware memory called “enclaves”, preventing hackers from accessing the data, even if the infrastructure is compromised. This allows businesses to run sensitive applications in the cloud or other hosted environments, as the risk of malicious or unintentional breaches is essentially eliminated.

The evolution of digital fraud

With the outbreak of the pandemic in 2020, financial institutions rushed to develop online services to make banking services accessible to limited consumers. The flip side of this digital shift is creating new opportunities for scammers to steal PII. According to a recent study by the Identity Theft Resource Center, 1.5 billion PII entries have been exposed in the past three years alone.

The availability of PII creates a number of opportunities for cybercriminals. They can use complete sets of customer information to open new accounts or put together different pieces to create entirely new profiles, known as composite identities. The 2021 Consolidated Identity Fraud Report found that US banks lost $20 billion in 2021 due to aggregate identity fraud (SIF).

Whether it’s using one person’s sensitive information or an aggregate of many, PII is the key that criminals use to open up a wide range of fraud opportunities. Fortunately for financial institutions, confidential computing not only protects PII from the risk of exposure but also enables a new approach to combating digital fraud – sharing fraudulent profile information. between banks. PII Protection and Anti-Fraud

When scammers steal PII, they use it to create fake accounts, borrow money, and open multiple lines of credit. Whichever approach they take, they can reuse the same information to commit fraud at multiple banks, none of which is wiser.

Why? Because even if financial institutions suspect or find out that PII is fraudulent, they cannot report it to their peers at competing banks for fear of breaching confidentiality laws, leaking data, or causing fraud. or put itself at a competitive disadvantage.

This is why confidential computing and its ability to encrypt data during processing or execution are so important. It allows financial institutions to check information for signs of fraud and share their findings anonymously, without the risk of exposing PII in the process. This approach encourages financial firms to cooperate in the fight against digital fraud, eliminating duplication of effort and making it easier for regulators and enforcement agencies.

The technology has been successful in industries like healthcare, and similar success must now be replicated in financial services to protect PII. It has the potential to be the driving force behind improving digital fraud detection and reversing the rise of digital fraud.


While the financial services industry is viewed as lacking significant diversity, many studies have shown a strong business case for promoting diversity and inclusion. A recent study, The Journey of African American Insurance Professionals, offers some practical suggestions for recruiting and retaining African Americans, a group that is underrepresented in the industry.

The study, conducted in collaboration with the National African American Insurance Association and Marsh, resulted in the following recommendations:

  1. Establish relationships: Beyond conventional recruiting on college campuses, employers should establish ongoing relationships with key faculty members, business and community leaders, and other influential persons who can increase awareness of insurance industry career prospects.
  2. Tap into talent pools: Employers should tap into the talent pools in African American professional groups, for example, the National African American Insurance Association, Executive Leadership Council, National Black MBA Association, and National Association of Black Accountants, to broaden their recruitment efforts. Smaller businesses should tap into African American talent pools to enhance their competitiveness and improve their growth potential.
  3. Leadership commitment essential: Senior leadership commitment and engagement are essential to the substance, vitality, and sustainability of diversity and inclusion in the workplace. Recognition of, and respect for, different perspectives must be signaled from the top of an organization and be a strategic priority. Senior management engagement is a crucial element of success, including in such areas as sponsoring and mentoring; rectifying inequities in compensation and promotion; holding others accountable for diversity goals; promoting lines of communication that expose a diversity of ideas, experiences, and personalities; encouraging employees to own their careers; and opening doors for individuals to contribute.
  4. ERGs: Develop and Sponsor Employee Resource Groups (ERGs). ERGs should have a positive impact but must be proactive entities that bring employees together to address real concerns. ERGs should be safe places where overlapping objectives can be met, such as creating positive social environments where individuals can express themselves, and providing training on hard/technical skills (such as certifications and knowledge transfer) and soft/interpersonal skills (such as leadership, presentations, and mobilizing others). Industry organizations that encourage this type of “risk-taking” will benefit from heightened employee morale and productivity.
    *Build informational pipelines that inform prospective hires of the significant opportunities within the industry. There are obvious gaps in knowledge and awareness about the industry itself and where it is headed in relation to the application of data, analytics, and new technologies, which may constrain insurance from being a top choice.
  5. Mentor, Coach, and Sponsor. Formal coaching and mentorship programs and informal mentoring relationships should be explored to determine what fits best in a company’s organizational structure. Companies in the insurance industry should foster dynamic mentoring and coaching cultures and engage external experts, when necessary, to train mentors on the most effective coaching techniques and to enhance the quality of the relationships

Increasing exposure

Serving diverse communities has been and will continue to be a great source of sales growth for insurance carriers, senior development manager with New York Life Insurance Company’s Brooklyn General Office. Generally speaking, he added, members of these communities typically don’t have adequate access to financial advice, and are, on average, more likely to be under-insured or uninsured.

The following are some of the steps that an organization can take to increase its exposure to diverse communities, according to Agha:

  • If there are agents currently in your organization that are members of diverse communities you wish to target, develop them to be ambassadors of your organization to the communities they serve and create more “word of mouth.”
  • Invest in in-language training, and culturally relevant tools and marketing material. “Often in our industry,” “what’s available in English far outpaces what’s available in other languages. People from diverse communities need to feel a sense of belonging and relatability with the organization they work with.”
  • Make sure your organization’s website and other electronic communications channels have culturally relevant content, including in-language content where possible.
  • Support sponsored content and ads on popular local papers, podcasts, and TV shows, as well as conduct educational seminars in local communities. This content should be centered on the importance of considering insurance as part of preparing for one’s financial future, as well as on how people can pursue careers in our industry.


Small businesses make up more than 99% of the economy and are responsible for 65% of new job creation. In our opinion, there’s nothing “small” about that.

Many financial institutions (FIs) disregard small business owners despite these statistics. Only 25% of small-to-medium sized businesses (SMBs) have awarded relationship managers a “very good” rating since COVID-19, according to a recent survey by The Financial Brand. Even worse, according to research by Accenture, 42% of SMBs think alternative providers can give better service than established banks.

Part of the problem is that “small business” is a broad term, which means that a one-size-fits-all approach can’t serve every small business owner. Small business banking needs can vary based on a number of factors, which requires that FIs have flexible and scalable technology to meet those needs. These factors include:

1. Digital appetite and aptitude of the owner

The diversity of small business owners in the United States is reflected in the breadth of their digital appetites. One small company owner might wish to start their loan application online to discover what they are eligible for without speaking to anyone. A mom-and-pop startup’s co-founders might decide to arrange a branch visit so they can discuss their alternatives. The owner of a long-running company who has a good working connection with their banker could wish to call them at the same time to check in regarding a new product line they’re interested in launching.

2. Maturity/size of the business

A company’s requirements become more complex as it expands. In order to handle their payables and receivables, a successful small business owner may need to acquire treasury services. They may also be interested in investigating new financing possibilities as they grow their market. On the other hand, a smaller business owner could be willing to investigate options like an SBA Express loan.

3. Nature of the transaction

Many participants in the banking industry, such as alternative lenders, catering to the transactional needs of small business owners. However, in a perfect world, technology suppliers would simultaneously take into account the requirements of the FI, the lender, and the small company owner. FIs are best positioned to offer tailored advice and dependable service to their SMB clients when all essential parties are given the opportunity to cooperate in a balanced manner.

Small business owners have at least one trait despite their numerous diversity. They are the only ones who truly understand their business, and as they move forward in their entrepreneurial path, they desire encouragement, consolation, and individualized advice. They want a banker who understands their situation before they even tell them to reach out to their FI.


Fintech is a vast market. It can disrupt the traditional banking system and create new opportunities for financial services. In the past decade, we have seen an increasing number of startups focusing on this industry, leading to many more disruptions and innovations in how we handle our finances.

Courses in fintech are the newest big thing. The combination of technology and financial services is referred to as fintech. It has become increasingly well-liked over the past few years and is now an essential component of contemporary banking. Fintech businesses are transforming how consumers do their banking.

By giving clients more options, better customer service, and reduced pricing, they achieve this. Although a business called Innovate Finance first used the term “Fintech” in 1999, it wasn’t until 2008 that a Fintech startup, Square, significantly disrupted a sector. Big businesses are making investments in fintech.

But it may be a surprise to know why these traditional firms are spending millions on these emerging technologies. The six most common reasons are:

  • Investing in digital transformation to stay relevant
  • Saving costs by using Fintech to outsource services and reduce expenses
  • Facilitating the customer experience with better service
  • Improving workflows and processes
  • Increasing the speed of innovation and development through partnerships with startups and innovators
  • Improving organizational efficiency

What Brought These big Players to the Table?

Traditional financial services companies are increasingly searching for novel revenue streams and competitive advantages. Fintech investments are one of the greatest methods. The amount of money that the major players have invested in Fintech companies over the past two years is unparalleled.

Big participants in the traditional banking industry are increasingly interested in the topic of fintech investments. Along with Fintechs, established businesses are collaborating to provide fresh goods and services. These businesses are aware that if they want to remain competitive and relevant, they must embrace innovation.

Fintechs are receiving funding from organizations like JP Morgan and Goldman Sachs. They either purchase full ownership of companies with a bright future or make strategic investments in them.

Why are Large Firms Investing in AI & Robotics?

The trend of large companies investing in AI and robotics has been developing for some time. The quick rate of technology development, which is always altering how we live, work, and interact, is the cause of this.

While some businesses use AI to boost productivity, others see it as a method to maintain their competitiveness. The typical business will invest in artificial intelligence (AI) or robotics to enhance its customer experience, boost productivity, and cut expenses. These investments can be expensive, but there are several ways to make them without going bankrupt.

Because they worried about how it might impact their bottom line, huge companies were previously hesitant to invest in new technologies. These businesses understand that, given the current rate of change, they need to invest in these new technologies to stay competitive and maintain their market share.

What the Future Holds for These Major Investments

A lot of individuals are interested in the future of investments. Although predicting the future is difficult, there are some tendencies that we may observe to make an attempt.

Fintech investments in the future will be more varied than they were in the past. As a result of rising investment, non-traditional Fintech industries like bitcoin and blockchain technology will face more competition.

Future investment opportunities will differ as a result of technological advancements. By offering financial guidance and forecasting market trends, artificial intelligence has already made an impact on the investment world.

The Potential of Investment Opportunities in Fintech

Fintech is a rapidly expanding industry that has attracted considerable investment prospects lately. With new businesses starting up and existing ones adding new services, the industry’s growth and innovation potential are still enormous.

There are several opportunities for investors to invest in this market, from directly supporting new startups and contributing capital to established businesses with potential futures to indirect investments through Fintech-focused funds.

There are many methods to get involved in the Fintech sector. You can do this via consulting, serving as a board member or advisor for a business, or both. You can enroll in Fintech courses in India to get started on the path; these courses will provide you with a thorough understanding of industry trends and will get you ready for a career in the Fintech sector.


Even before the pandemic hit, sectors like retail, gaming or e-healthcare moved quickly to embrace the speed, convenience and experience of digital services – led by technology pioneers like Amazon or Google.

Despite the availability of online tools and support via apps or chatbots, traditional banks and financial institutions have traditionally encouraged consumers to visit in-branch locations.

Since many lacked the tools to securely validate a person’s identity digitally, it was believed that fraud was more difficult to detect in the virtual world. They also had a natural desire to take advantage of their substantial physical presence investments to build solid client trust and loyalty through face-to-face encounters.

However, during the past several years, the epidemic has acted as a digital accelerator for banks as well as consumer demand. Financial services could no longer afford to take their time navigating the digital world; those who do so risk falling farther behind in a society that is fast changing. In fact, a McKinsey analysis revealed that the lockout sped up digitalization by seven years, and an S&P Global study discovered that 60% of consumers visit physical branches less frequently than they once did.

It’s crucial that banks look to pioneers in developing digital experiences, like Amazon, as an example of best practices to follow as they think about how to foster trust and engage with clients in the digital realm.

Putting customers first

Amazon’s devotion to its customers is one of its distinguishing characteristics. It places a laser-like focus on every facet of the user experience and mercilessly streamlines it through ongoing experimentation and A/B tests. The digital experience must be frictionless so the customer may complete the purchase without the assistance of a salesperson. Although Amazon learned this lesson twenty years ago, the traditional financial services sector is only now beginning to confront it.

Nobody would have imagined doing something like buying a mattress online ten years ago. It seemed dangerous just to consider purchasing a pair of sunglasses online without first making sure they look well on your face. Amazon, though, assisted in changing the market’s course. Customers grew accustomed to Amazon’s four-click process: add the item to the basket, checkout, confirm shipping, and buy rather than traveling to the furniture store, trying out a dozen or so mattresses, and then having their preferred mattress delivered a few days later.

In contrast, customers in the financial services sector are required to pass through a myriad of hoops in order to use basic banking facilities. Those who want to open a bank account online must respond to a never-ending list of inquiries meant to confirm their identification. Finanteq discovered that opening a bank account at certain major banks involves more than 120 clicks. When contrasted with the Amazon experience… How many consumers would make a purchase if it required 120 clicks?

Our most recent consumer survey confirmed the value of a seamless customer experience. It was shown that 60% of customers admitted to giving up on an online registration because it took too long, was too complicated, or caused them to worry about the security of their personal information. Poor digital experiences are expected to turn off many customers from banks.

A seamless, simplified client experience is essential, and more importantly, anyone who prioritizes it can achieve it.

Approaching a frictionless journey

Banks are currently attempting to mimic the Amazon experience, and in doing so, many have discovered that a contemporary onboarding process can be the doorway to trust, security, and an improved user experience. In order to comply with anti-money laundering (AML) and know your customer (KYC) regulations, banks don’t have to make their customers answer dozens of questions and go through a number of hoops. Instead, they can restructure their identity verification procedures in a safe and effective way.

How? Many people are deciding to support a new paradigm based on digital identities. Digital identities, which are supported by cutting-edge technology like AI and biometrics, are able to meet the most stringent KYC requirements while also speeding up customer onboarding. This journey toward putting the needs of the client first will enable the financial services industry to emulate Amazon.

However, these technologies are available for use by the entire business and are not just for early adopters. By doing this, banks may take part in the digital identity revolution while simultaneously enhancing client experience and securing the onboarding procedure. However, this is impossible if banks are unaware of how many steps their existing onboarding process entails and where exactly consumers are lost. Competitors with advanced digital skills are winning the war because they have this understanding of who their consumers are, how they are onboarded, and where friction is present.

The financial services sector must also be ready to fundamentally rethink the digital experience and center digital roadmaps around client needs and wishes. With the aid of contemporary technology, banks and other institutions are able to monitor onboarding processes, pinpoint the precise points at which and how the customer acquisition process is stalling, and relentlessly experiment with A/B tests that enhance the user experience and remove roadblocks along the way. Amazon would carry it out in this manner.

In today’s post-pandemic environment, clients prioritize simplicity of use and convenience, and digital is the standard. Financial services must concentrate on developing seamless digital experiences that give consumers the freedom, power, and security to access their assets in the manner that fits them best if they want to win customers’ loyalty and trust.


The Twitter vs. Elon Musk issue should serve as a lesson to any company built on user numbers: quantity does not equate to quality. Banks and FinTechs must now switch from a growth-focused strategy to one that caters to the demands of its key demographics and fosters loyalty in order to become profitable, powerful, and able to endure the current economic storm.

This was a key topic on the Money 20/20 program this year. Together, the four pillars of effective strategy—customer experience, loyalty, digital transformation, and fraud—have pointed to a new paradigm of slower growth and higher quality. Neobanks like Starling, for instance, stated that rather than focusing on acquiring more accounts, their strategy is focused on luring and keeping customers who suit their target demographics in order to produce profitability.

That’s a smart decision considering that fraud affects 85% of new account opening applications, according to BankInfo Security. The days of valuing anything based on how many users there are quickly passing away. It is evident that when banks are just interested in obtaining a big number of new accounts, criminals will gladly open fictitious accounts to further their illegal activities because banking systems may not be up to the greatest cybersecurity standards. For precisely these reasons, FinTechs actually see three times more fraud than traditional banks.

Soaring account openings, which show significant user adoption and brand identification, are a reason for joy for the majority of expanding businesses. Growing businesses aiming to bring on new clients quickly present criminals with a golden opportunity. One bank, for instance, advertised to high-income prospects that they could apply for a credit card and a deposit account at the same time, which resulted in a subset of criminal applications. Later, these were connected to losses from credit fraud and the abuse of mule accounts.

Similar to how digital and automated account operations have helped banks serve consumers more quickly, they are also vulnerable to fraudsters who can open new accounts using stolen or fake identities. This can cost individual institutions millions of dollars in fraud losses and damage trust.

Fraudulent account openings that go undetected are a surefire recipe for disaster. Building genuine client loyalty—which calls for a comprehensive strategy that includes the newest digital technology, seamless customer experiences, and more effective fraud detection and prevention—is how success and long-term viability are demonstrated.

Everlasting loyalty, and how to achieve it

Two crucial elements for banks in developing customer loyalty are ensuring a faultless client experience (both online and offline) and ensuring the greatest degree of fraud protection and prevention. Fighting fraud is crucial for client protection, but users also need the quick and seamless digital interactions they come to expect from consumer-style apps.

For both conventional and new banks, this is their biggest challenge. Consumer-friendly application and transfer procedures must be implemented, along with rigorous fraud checks. Banks must keep providing loyal clients with a frictionless experience while putting up significant effort to safeguard them as they use an increasing number of services. While increasingly sophisticated criminal networks continue to readily evade many of the current fraud protection tools and procedures, the addition of ever-increasing layers of identity authentication might alienate customers and cause genuine application abandonment. Banks are unable to keep up with how hackers are getting through every security measure in place, including passwords, device IDs, one-time passcodes, and other forms of identification.

Criminals are skilled at employing digital deception to get past security measures, from credential stuffing to social engineering. They cannot, however, imitate a real customer’s true behavior. Behavioral biometrics is taking a stance on the front lines of the battle against fraud and in the direction of safe, simplified customer experiences.

Reshaping the route of criminal behavior

In order to discriminate between law-abiding users and criminals, behavioral biometrics uses machine learning to analyze user behavior. This technique reduces fraud and identity theft while also enhancing consumer experiences. This is accomplished by profiling user activity at both the user and population levels to discover behavioral anomalies and trends associated with legitimate and fraudulent activity. This is done by analyzing real-time physical interactions such as keystrokes, mouse movements, swipes, and touches.

Cybercriminals are unable to hide the tiny behaviors that distinguish them from legitimate clients, much like poker players always have their “tell.” When repeatedly entering personal information, for instance, genuine users can draw on their long-term memory because they are familiar with the facts, but cybercriminals frequently pause to consult resources or make use of copy-and-paste tools as they enter unknown information. Another illustration focuses on age-related behavior. Senior users enter data differently than younger users, which can be a hint that a cybercriminal is attempting to access the account.

Micro-behaviors can even reveal the user’s emotional condition, even if the profile looks to mirror the physical attributes and preferences of a recognized legitimate user. For instance, cognitive analysis can reveal even the most sophisticated social engineering tricks by identifying whether a user is acting on purpose or under duress. Only when fraud prevention technologies continuously scan a session for the subtlest changes in user behavior can some of today’s most sophisticated attacks be identified.

Fighting fraud is fundamentally what makes today’s financial services successful, from account opening through unwavering devotion. Criminal behavior patterns stand out in a huge group of real users; it requires cutting-edge technology to find them, but they can never be hidden. Thanks to the implementation of behavioral biometrics, real customers can gain from frictionless interactions and fraud protection by simply being themselves. The banking sector has been technologically changed in recent years, and seamless services and secure protection are essential. Thanks to robust AI and machine learning, we can now use criminals’ actions against them and give loyal consumers an even better experience.