4 Ways (ABCD) Technology is Transforming the Finance Industry

Digital transformation in the finance industry is becoming more of a business strategy, and the customers are experiencing all kinds of new implementations in their daily lives. The business structure has been transformed from a very closed system to an open architecture and this shifted customer expectations in various ways. Add to this, the industry has also been striving to meet customer demands through disruptive technology as the customers expect their financial service providers to become more customized, just like one of their favorite brands.


Digital technologies have not only changed some trends in financial services but increased awareness in various fields, and we’re here to analyze how the financial institutions today have built security around ABCD technologies – which are AI, Blockchain, Cloud, and Data analytics. Even before the pandemic outbreak, a lot of the banks across the globe have been implementing various online services for their customers. Citibank has become one of the world’s best digital banks, and many countries have also adopted digital-only bank systems. 


The reasons behind this transformation are simple: challenges and digital technologies. Through intensive challenger games, we as customers have become able to choose from various options according to our convenience. Organizations need to move at speed and pace while balancing security not only to compete against each other but to improve their systems – and Penta Security is here to guide you through them here today. 


1. AI and Intelligent Insights 

Digital transformation has made it possible for the industry to apply AI intelligence for insights, including the identification and prevention of fraud. The automation and predictions further allow the consumers to enjoy the improved management system and data analysis customized for their specific needs: meaning it can also improve and customize investment plans for the customers. AI can even detect fraud in real-time as they can handle large quantities of data. However, they can require very high costs, and upgrading its Softwares and maintaining security could result in enormous time, cost, and effort.


2. Practical Applications of Blockchain 

The blockchain technology in the transformative digital world has changed the way we manage our risks. From storing our personal information to managing key lifecycles in trusted execution environments, we’re getting closer to achieving the most powerful security solution that protects (virtual) assets via blockchain. For instance, Penta Security’s MPC (Multi-Party Computation) solution can manage the overall key lifecycle with bank-level security, compliant with key management regulations that are supported in the elliptic curve including ECDSA, EdDSA, etc. 


3. Cloud Data Repatriation to On-Premise Infrastructure 

Storing data on the cloud still is one of the most convenient ways to keep them safe by moving their workloads. However, the cost of not only implementing but maintaining the entire system can be very expensive – which has led companies to wonder whether migrating to cloud computing and storing was the best idea in the first place. If there’s too much downtime, slow latency, budget, and security concerns, your company should definitely consider repatriating to on-premise as soon as possible. 


4. Data (Machine) Analytics for Decision-makings 

With no doubt, data is one of the differentiating factors and capabilities that redefine the way banks can operate: data is basically everything today. However, the institutions must have the tools to make data-driven business decisions, to grow and create new businesses, and most importantly, manage risks and regulations by determining whether the data they collected is reliable and legitimate. It improves productivity and decision-making processes as well as enhancing risk assessments. 


As financial service companies or institutions, you get to face challenges daily. Surging cybersecurity and data privacy concerns have left the companies with nothing but to invest more in robust security measures to avoid compliance and risks. As an award-winning cybersecurity company, Penta Security is here to guide you through various processes and help you navigate the disruption with our robust cybersecurity solutions. If you’re willing to expand further in protecting your customers’ assets on the blockchain or deploying safer cloud security for data, we’re here to help you achieve your goals.