The new Age Digital Transactions are significantly Increasing Enterprise Risk Landscape and Vulnerabilities
Digital transformation is the foundation of most enterprise strategies today and its increasing pace is significantly impacting technologies thereby drifting towards the integration of cashless economy, cloud adoption, mobility, the explosion of the Internet of Things (IoT), and deploying new solutions. The integration of all these systems, technologies are enabling a data-driven approach posing various security threats, as these inter-connected systems accelerate the speed and threats of attacks across the financial globe. Enterprises are battling security issues with the increasing network complexity, rising gaps in security protection, polymorphic attacks, and compliance issues. It is imperative for businesses to be secure, vigilant, and follow security best practices such as integration, automation, using technology and data to drive innovation. With the ever-growing digital transactions, enterprises are digging into real-time data analytics and blockchain integrated with cognitive learning to prevent risks arising from digitization.
The continuing technology advancements and combating financial crime in a digital age
Digital evolution is continuously pacing up, you will see more companies switching to cloud technologies for many channels such as analytics security, KYC/CDD verification, risk scoring, financial transactions, and much more. Digital augmentation is followed with a bang of cybersecurity and it is building curiosity as to how will this impact AML compliance and security management across the financial space.
The outlook of businesses conducted over the last few years is very different as compared to the forthcoming years. In previous years, AML compliance has been drifting and evolving with increased government policies and regulations. Money laundering activities and terrorist funding have been growing for many years, keeping pace with new technologies, crimes have evolved and are becoming a critical issue to battle. Owing which banks must continuously keep updating their AML solutions and processes and adhere to compliance regulations else they can be penalized. So, adopting new technologies, updating frameworks, policies and being flexible is becoming a necessity for all Banks to combat the ever-growing AML threats. Financial institutions must concentrate on digital payment issues, regulatory framework, and money laundering risks related to internet payment methods such as mobile e-wallets and online payments and transactions.
Enterprises should think to switch from conventional risk methods to innovative technology. It’s time now companies should leave legacy systems and leverage new technologies along with intelligent automation in their compliance programs to combat financial crimes in the digital age. This is how technology innovations can support banks to fight fraud and provide security to their customers in the continuous battle against threats and cyber-crimes today.