Introduction
Modern banking has changed how we handle our finances for the better, from opening bank accounts to sending money. Many financial technologies (fintech), from automation to mobile apps, have emerged to help us complete nearly every transaction with a few clicks on our computers or taps on our smartphones.
However, many banks and financial institutions still struggle to veer away from their outdated approaches. Furthermore, even with the rise of fintech, protecting customer data’s security and privacy still proves challenging.
This is where Internet of Things Philippines Inc. comes in. As one of the top artificial intelligence (AI) companies in the country, we will help you leverage the latest technologies to overcome modern banking problems, streamline your processes, and protect your assets. Read on to learn more about how AI can assist with identity authentication in banking and finance.
Uses of AI in Identity Authentication in Banks and Financial Institutions
Identity theft has become a serious problem as unscrupulous individuals get more sophisticated in committing fraud. The Bangko Sentral ng Pilipinas (BSP) received 42,456 complaints from fraud victims alone from 2020 to 2021. This was the time when the pandemic was at its peak, which was why the economy was down and many people lost their jobs.
For this reason, banks and financial institutions partnered with top AI startups to strengthen their security measures and improve customer experience. They used AI for identity authentication, which helped them achieve the following:
Enhanced Security and Fraud Protection
AI allows computers and machines to think and act like humans when making decisions. It can analyze data and create detection models based on the results, making it possible to verify and authenticate identities on a large scale.
Opening bank accounts requires verification of government-issued IDs, like passports and driver’s licenses. However, manually checking these documents can easily lead to errors and jeopardize data privacy. AI can automate this process and address these issues so that you can onboard clients more quickly.
Thus, the best AI companies can help reinforce your security systems, including biometric authentication and identity verification. This technology enhances your know-your-customer (KYC) regulatory checks and anti-money laundering (AML) processes, minimizing the risk of fraudulent transactions and other suspicious activities.
Improved Account Access Management
Banks and financial institutions can’t afford to make mistakes when protecting customer and company data. They must find ways to balance security measures with consumers’ demand for convenient and instant access to banking services. Unfortunately, they face more and more threats by the day, from phishing to Distributed Denial-of-Service (DDoS).
This makes identity and access management (IAM) more important than ever. Top artificial intelligence companies can back IAM systems with AI to identify unusual user behavior and potential threats before they cause harm. They can assess login patterns, such as time, location, and actions taken, to detect suspicious activity.
On top of that, AI-powered IAM systems can provide users with a personalized, secure, and smooth experience. They use machine learning algorithms to constantly assess and evaluate behavior and context, checking the level of risk linked to their activity. Afterward, they adjust the authentication requirements, prompt for additional verification factors, and apply access restrictions as necessary.
Seamless and Cost-Effective Identity Verification
It is easy to integrate artificial intelligence with your existing identity verification process. AI-backed document verification, for instance, uses optical character recognition (OCR), which can detect text in scanned documents and images. It can verify the authenticity of microprint text and use facial recognition to match identities. Furthermore, it can pre-populate application data quickly and accurately, streamlining customer onboarding and loan processing.
By letting AI do the repetitive and tedious tasks, you can streamline your procedures and save money. More importantly, you can free up human resources, allowing them to focus on more complex tasks.
Possible Challenges With Using AI in the Banking and Finance Industry
Considering how top AI companies have revolutionized the banking and finance industry, it is here to stay. According to a report by Business Insider, 80% of banks understand the benefits AI can offer in the sector. However, while this technology can make financial services secure, efficient, and customer-friendly, remember that it can be a double-edged sword if you are not careful.So, what are the risks? First, since banks gather substantial customer data, they are an appealing target for cyber attacks. It is crucial to prioritize data privacy and security to avoid data breaches and protect confidential information.
In addition, banks must adhere to stringent regulations and compliance requirements. AI implementation can raise regulatory concerns, such as using unknown algorithms. Besides, it can cause job displacements, compensation disparities, and decision-making bias. As a result, banks should always ensure their AI systems are fair, impartial, and transparent.
IOT Philippines: Your Trusted AI Company
Start leveraging the benefits of AI for modern banking by turning to IOT Philippines, one of the top artificial intelligence companies in the country. We offer scalable and cost-effective identity and authentication solutions tailored to seamlessly work with your systems and comply with regulatory requirements.
Our AI devices can analyze vast amounts of data and identify patterns or anomalies. You can reduce the risk of identity theft or unauthorized access. Furthermore, you can allocate more resources to more important matters by automating your verification procedures. Feel free to message us for inquiries.
Conclusion
With increased fraud threats and rising demand for seamless user experience, utilizing AI for identity authentication in banks and financial institutions is crucial. It is not just a competitive advantage but a necessary step toward building trust, protecting sensitive information, and meeting customers’ evolving needs.
Don’t let outdated systems hold you back. Take the next step by turning to IOT Philippines for top-notch AI solutions. Let us help you stay ahead of the curve and give your customers the peace of mind they deserve. Contact us today to get started.
