# These are the technologies that will disrupt finance post-pandemic Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-06-22 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Key Technologies for Next-gen Digital Banking Meta Description: Explore how banks are embracing digital transformation with technologies like digital ID verification, mobile-first delivery models, and AI to combat fraud and URL: https://financedigest.com/these-are-the-technologies-that-will-disrupt-finance-post-pandemichtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/finance-conceptm1bdvupo-1736838270344-compressed.jpg) _By **Mark Crichton,** Senior Director of Security Product Management at_ [_OneSpan_](http://www.onespan.com) The financial services industry had already been experiencing an unprecedented wave of digital transformation, which has only been accelerated by COVID-19. When the pandemic hit, banks began to rapidly digitise their internal management and customer processes, as people across the globe stayed home. This allowed services for important financial transactions to continue. Now, as we emerge out of the pandemic and lockdown, these will be the key [technologies that banks will look towards to usher](https://www.financedigest.com/is-wearable-technology-ushering-in-a-brave-new-healthy-world.html "Is wearable technology ushering in a brave new healthy world?") in the next digital banking era. **Eliminating fraud with digital ID verification** Today, [one in five](https://www.thisismoney.co.uk/money/saving/article-9214765/How-Covid-nail-coffin-local-bank-branches.html) banking customers still require in-branch visits for their financial needs. The shift to digital forms of [banking has been continually rising](https://www.financedigest.com/the-rise-of-the-specialist-bank.html "The rise of the specialist bank") throughout the past couple of decades, and the pandemic has only accelerated this trend even more. As we know, cybercriminals will always follow where the money goes, so it’s no surprise that the NCSC have taken down [15 times more online scams](https://www.theguardian.com/technology/2021/may/10/uk-covid-related-cybercrime-fuels-15-fold-rise-in-scam-takedowns) last year, compared to 2019. As we move out of the pandemic, we’re not out of the water yet. Next-generation authentication [technologies such as biometrics and facial matching](https://www.financedigest.com/all-shapes-and-sizes-how-to-match-your-technology-to-your-finances.html "All shapes and sizes: How to match your technology to your finances") can actively verify a person’s identity both digitally and for in-person interactions. Consumers can use their mobile devices to scan their ID and take videos or “selfies” to prove that they are indeed the person on the ID. **Mobile-first delivery models** With the onset of the pandemic, millions of banking customers needed new ways to [manage their finance](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances"), banks were forced to quickly switch to mobile-first payment model. Today, approximately [68% of UK banking customers](https://www.businessinsider.com/uk-mobile-banking-survey-2020?r=US&IR=T#:~:text=In%20Insider%20Intelligence's%20second%20annual,respondents%20surveyed%20use%20mobile%20banking.) use mobile banking, 86% of those said it was their primary banking method. By making use of the full potential of mobile channels, [financial institutions](https://www.financedigest.com/the-future-of-financial-institutions-in-2023.html "The Future of Financial Institutions in 2023") will have access to more data than ever before, so that they can instantly, more accurately identify and thwart cyber-attacks and fraud attempts. [Banks can use mobile channels to collect real-time data about customers](https://www.financedigest.com/uk-banks-and-insurers-told-to-step-up-help-for-struggling-customers.html "UK banks and insurers told to step up help for struggling customers") and transactions, as well as data about their behaviour, environment, location, and biometric data. A mobile phone’s Bluetooth can even enable them to discover other connected devices near the client. All this data allows the [bank to have a deeper understanding of its customers](https://www.financedigest.com/how-partnerships-fuel-fintech-innovation-and-help-banks-deliver-a-better-customer-experience.html "How Partnerships Fuel Fintech Innovation and Help Banks Deliver a Better Customer Experience") and the meaningful context of any given situation. For example, the bank may know exactly where the transaction occurred: either in the customer’s hometown, or in a suspicious location (such as overseas). By leveraging the vast amount of new data available on mobile devices, [banks can better understand each session and transaction in real-time and block fraud](https://www.financedigest.com/attacking-banking-and-fintech-fraud-head-on-through-ai-infused-strategies.html "Attacking Banking and Fintech Fraud Head-On Through AI-Infused Strategies ") before it happens, which was almost impossible to do before. **AI is garnering the full potential of data** The information stored in many different databases makes collecting meaningful data a tedious and time-consuming process. As the amount of data increased over recent years, [banks began to use artificial intelligence](https://www.financedigest.com/artificial-intelligence-in-banking-magazine.html "Artificial Intelligence in Banking Magazine") (AI) and machine learning (ML) technology to analyse the wealth of data available to them in real time. Today, more than [one-third of large banks](https://www.businessinsider.com/ai-in-banking-report) are using artificial intelligence technologies. In the past, banks relied on manual verification of transaction data to [detect fraud](https://www.financedigest.com/the-clues-to-detecting-fraud-are-hidden-in-relationships.html "THE CLUES TO DETECTING FRAUD ARE HIDDEN IN RELATIONSHIPS"). Now, the amount of data has become so large that it cannot be processed manually. In contrast, sophisticated AI and ML technologies are now used to fully automate risk assessed workflows. This greatly reduces the [number of manual rejections by the anti-fraud team](https://www.financedigest.com/why-finance-teams-need-to-go-beyond-numbers-to-an-active-relationship-with-data.html "Why finance teams need to go beyond numbers to an active relationship with data "). With these technologies, anti-fraud teams can become more flexible and quickly detect fraud. The real potential of AI and ML in the banking industry is finally being recognised by people. Today, most [banks already use these technologies to easily](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023") identify potential fraud and assess risks. However, with AI and ML technologies in place to automate responses to mitigate fraud and solve customer problems faster, it means that financial security teams will spend less time [dealing](https://www.financedigest.com/incentive-fm-secures-new-deal-with-dollar-uk.html "Incentive FM Secures New Deal with Dollar UK") with false positives and more time ensuring key digital channels are completely secure. What’s more is that as banks get a better idea of a customer’s regular banking behaviour, such as where usually they bank from and regular patterns of transactions, these algorithms can recognise this so that security decisions have little to no impact on the digital [user’s experience](https://www.financedigest.com/fintechs-how-to-increase-loyalty-through-user-experience-and-fraud-prevention.html "FinTechs: How to increase loyalty through user experience and fraud prevention"). **[Self-sovereign digital identity](https://www.financedigest.com/top-5-trends-in-decentralised-self-sovereign-identity-ssi-and-privacy-preserving-technology-in-web-3-0.html "Top 5 trends in Decentralised Self-Sovereign Identity (SSI) and Privacy-Preserving Technology in Web 3.0 ") through blockchain** Blockchain technology, also known as a distributed ledger, can fundamentally change how we control our personal information (PII) and make [financial institutions and online transactions more secure](https://www.financedigest.com/5-steps-to-strengthening-your-online-financial-security.html "5 Steps to Strengthening Your Online Financial Security"). A digital identity that you can use with any online organisation via [public key cryptography and referencing someone’s verified credentials in a shared and trusted](https://www.financedigest.com/2019-year-must-re-build-public-trust-finance.html "2019 is the year we must re-build public trust in finance") ledger (distributed leader), blockchain will be able help people control their digital identity. Consumers can ensure the safety of their credentials and use them as encrypted [evidence when banks](https://www.financedigest.com/cut-evidence-empower-how-technology-can-help-banks-deliver-on-cop27-commitments.html "Cut, evidence, empower: How technology can help banks deliver on COP27 commitments") or other online businesses need to verify their identity. It will also enable individuals to revoke access at any time. These channels across the blockchain network will enable individuals to have full control of their PII disclosure, helping to prevent fraudulent transactions. If the transaction is rejected as fraud, the company currently has multiple options to prove its legitimacy, which can contribute to greater annual refund losses. If consumers each have a verified digital ID, secured [via blockchain technology](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION"), they will all be protected online. Banks and other companies would have the ability to show who made the transaction and significantly reduce the refunds they issue. Widespread blockchain infrastructure has been slow to be accepted **,** but with the growing popularity of cryptocurrency **,** blockchain will soon become the norm of the [financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") industry. [70% of banks](https://assets.kpmg/content/dam/kpmg/ae/pdf/Blockchain.pdf) around the world are already beginning to experiment with blockchain technology to enhance the services they provide. Beyond the pandemic these technologies will provide a faster, more convenient, and fully digital way to open new accounts while [preventing fraud](https://www.financedigest.com/payroll-fraud-and-how-to-prevent-it.html "Payroll fraud and how to prevent it") in financial services. In the past year, with the help of mobile devices, AI **,** blockchain and digital identity verification, the [financial services](https://www.financedigest.com/how-financial-services-companies-can-successfully-utilise-low-code-and-no-code-technologies.html "How financial services companies can successfully utilise low-code and no-code technologies") industry has made great progress to digitally transform these critical processes. However, [banks still have many unexploited opportunities to use these technologies to optimise their services and increase](https://www.financedigest.com/banking-and-fintech-convergence-will-increase-reliance-on-it.html "Banking and Fintech Convergence will Increase Reliance on IT") competitiveness. For financial services and even in other industries, these [technologies can enable companies to improve](https://www.financedigest.com/how-technology-is-improving-car-safety.html "How technology is improving car safety") the digital user experience, eliminate online fraud, give customers back control over their sensitive information, and help us protect our online identities. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---