Banks need to innovate faster and further when it comes to the technology they use on their online platforms, as to stay one step ahead of bad actors with access to the same technology.
Not only are fraudsters getting more complex with their schemes and harder to predict, but customers are becoming harder to impress. Banks need to make sure they’re using tech in ways that keep the fraudsters out, but don’t send customers looking for another service.
In the July Digital Banking Tracker, PYMNTS examines how banks are using tools like artificial intelligence (AI) and automation to both fight against fraud and better engage customers. The Tracker also examines how these technologies are beginning to be used in new markets like South Africa and India.
Around the Digital Banking World
An increasing number of banks are expanding to new markets in an effort to grow their customer base. Challenger banks like Monzo are making their way across the pond to set up shop in the United States, offering their banking services against U.S. legacy banks and FinTech startups alike. The United Kingdom-based challenger is joining several other new entrants in bringing mobile and digital banking services to the U.S., including German bank N26.
In other areas, increased smartphone penetration is leading to more consumers conducting their banking through digital or mobile channels. In South Africa, digital banking FinTech TymeBank has reached 400,000 customers just a few short months after opening in February. The FinTech is South Africa’s first fully digital bank.
Of course, mobile and digital technologies aren’t always enough to ensure consumer loyalty. As JPMorgan Chase shutters their millennial and Gen Z-focused digital-only bank Finn, it is taking this lesson to heart. Closed after less than a year of its nationwide rollout, the mobile bank’s customers will be integrated into the larger Chase banking platform.
Banks And Fraudsters Are Locked In A Tech Innovation Race, Says BBVA
Banks and fraudsters have been fighting an innovation war for decades, and the pace of technology innovation today hasn’t made it any easier. To keep up with fraudsters that are using AI, machine learning (ML) and other technologies right alongside them, banks need to utilize every bit of data they can, according to Brian Fricke, chief security information officer for BBVA.
Deep Dive: How AI And Automation Are Changing Digital Banking In India
As more consumers flock to digital banking, creating personalized services is becoming trickier for FIs around the world. This is especially true in markets like India, where demonetization and an increase in mobile usership is leading to a wealth of new digital banking users and new competition in the market. That may be why more market entrants are turning to technologies like AI and automation for better service.
To learn more about how banks are employing AI in this area, visit the Tracker’s Deep Dive.
About the Tracker
The Digital Banking Tracker™, a Feedzai collaboration, brings you the latest news, research and expert commentary from the FinTech and consumer banking space. It also includes a provider directory featuring the rankings of more than 250 companies serving or powering the digital banking sector.