Cybersecurity is of increasing importance in finance, as Industry 4.0 looms overhead. Soon, everything will be digital – and this means that everything will need to be secure, from automated machines to work computers to money exchange.
How do we begin to move towards this secure industry? The good news is we’re already on our way there. Here’s how.
Wait – what’s Fintech?
Most of us are familiar with Fintech, but many may not know it by name. Fintech refers to ‘financial technology.’ However, Fintech is more than just the technology that transfers your payments. Rather, it’s the integration of technology with the financial system to create streamlined and secure monetary payments.
Cryptocurrency, crowdfunding and mobile payments all fall under the Fintech umbrella, with many other implementations. Paypal is a platform that many of us know, and one that pioneered the Fintech era. Paypal is also known for its security, which is a necessity in an era of digital transformation.
Fintech companies are changing the way we work
Industry 4.0 – or the Fourth Industrial Revolution – is here, and it means a change in the way we work, live and consume. In the near future, everything will be digital. At that point, cybersecurity will be of utmost importance. That’s why we’re already looking at ways for a more secure society.
Cryptocurrency is an interesting case. Cryptocurrency is digital currency that is backed by blockchain technology, such as Bitcoin or Ethereum. Blockchain is inherently secure and difficult to tamper with, because anything that is put on the blockchain cannot be removed or changed without a visible trail. This means that, in general, despite its anonymity, blockchain is safer and more transparent for monetary transactions.
Even outside of crypto, blockchain can ensure security in finance. Companies such as BlockArmour and Cryptyk prevent malicious attacks against large organizations, including financial ones.
This doesn’t mean that blockchain is completely and unquestionably safe. No technology is. Yet it could provide more security, in general, than the traditional payment system.
Another demonstration of the power of Fintech in cybersecurity is the utilization of artificial intelligence to better secure our financial systems. It’s likely that, soon, transactions will be largely automated. In this case, it will be necessary to have AI-backed systems to protect machines from external abuse.
Companies such as Google and Amazon have programmed their intelligent assistants with so many different abilities that they can actually handle many financial issues themselves.
AI can detect fraud and anomalous activity in financial transactions. This is what makes it ideal for the financial sector. AI could save the Fintech sector up to 1 trillion dollars by 2030.
Companies such as DreamQuark specifically develop AI-backed applications for banking and insurance, which can detect fraud and confirm credit checks and scores. DataVisor utilise AI to detect known and unknown fraud attacks in finance.
Fintechs globally are changing the way we deal with finance, transforming the monetary industry as we know it.
Blockhead is bringing blockchain into a variety of sectors. Interested in finding out more? Click here.