COVID-19 has forced financial institution leaders to pivot their physical footprint plans and drastically adapt how they think and invest in banking technologies.
A new study indicates COVID-19 has made banking executives accelerate their plans for investing in new tech such as cloud-based tools and AI. The desire is growing for new tools that can help organizations be more efficient, cut costs and proactively thwart off emerging financial threats to their organization and their cardholders. Another new report shares deep insight into how the pandemic is driving the fraud detection and prevention market.
The future of the financial services industry is being rapidly shaped by banking technologies that will drive significant cost savings by making their operations safer, more effective and more innovative. The fallout from COVID-19 has stressed the importance of protecting cardholders from the ever-evolving financial scams that have erupted during the pandemic.
The new banking study provides insight from 300 banking executives to conclude the following:
- 77% of bankers believe that unlocking value from AI will be the differentiator between winning and losing banks. Of that same group, 16% of respondents report that broader deployment of AI in fraud detection will be featured more heavily in future business plans.
- Fraud detection for customers also ranked on the "most valuable" list as another 15.75 indicated that was one of the most valuable use of AI as a key banking technology.
- 66% of banking executives say new technologies such as as artificial intelligence (AI), machine learning will continue to drive the global banking ecosystem for the next five years.
COVID-19 and the Impact on Fraud Detection
Another research report indicates just how big of an impact COVID-19 will have on the global fraud detection and prevention market size. New research indicates that the "market size is projected to grow from USD 23.4 billion in 2019 to USD 38.6 billion by 2021, at a Compound Annual Growth Rate (CAGR) of 28.4%."
"Several frauds have bourgeoned since the beginning of 2020. Therefore, the demand for FDP solutions and services is expected to accredit the largest market size for internet sales frauds, owing to a growing number of unlawful sales of products on the internet, especially amidst the COVID-19 pandemic crisis," the report concluded.
"Cyberattacks and fraud concerns are rising, as consumers are adapting to the new digital payment environment. COVID-19 is creating opportunities for attackers, and hence, banks are strengthening their security posture."