According to the IDC report, fraud management is a high priority for banking executives globally.
Businesses may be overestimating the competency of their current defense techniques against fraud as they develop digital products and services, new channels, and new payment methods, stated Michael Araneta, Associate Vice President, IDC Financial Insights.
Araneta further stated that what was adequate before would not be sufficient currently in the more digital world of businesses. Continuous upgradation of fraud management abilities is required.
The banking industry is caught between two crisis scenarios, each of which necessitates solutions that may contradict one another.
Government policy must be flexible, and financial services institutions – banks, insurers, and capital market firms – must strike a balance between revenue generation and risk management, according to Araneta.
By 2023, the industry will also be engaged in platform development, allowing financial services to be materialized and extended to third parties.
Banking as a service (BaaS) and digital lifestyle ecosystems are examples of new collaborations being pursued by the industry. What is clear is that being digital-first means being accustomed to the one-of-a-kind moment in the recovery of financial services, Araneta added.