What Changes will Artificial Intelligence Bring to Banking Security?

Companies in the banking and financial services industry - just like many other businesses - increasingly need to equip themselves with highly adaptable cyber-defense solutions against bad actors’ ever-evolving attack strategies. Artificial Intelligence (AI) throws yet another variable into the mix. Many banks and credit unions are already exploring opportunities to deploy AI-based solutions to proactively intercept these bad actors’ attempts to compromise their networks or access assets. At the same time, these bad actors are, themselves, taking advantage of AI-powered solutions to execute their attacks.

 

According HID’s 2024 State of Security Report, 35% of the surveyed users and partners said they will either test or implement some type of AI capability in the next three to five years. Early on, AI will be used for such banking security applications as enhancing identity management by more quickly and effectively surfacing identity-based trends, patterns and anomalies. Many more applications are either being deployed or will soon follow.

 

Promising Applications Abound

 

In the HID survey, 22% of all end users say that they are already using AI to optimize the accuracy of threat detection and prediction in their security programs. Today’s biggest use case is for data analytics, according to 44% of respondents. This is particularly important in the banking sector, where administrators need the power of AI to process information and recognize patterns in real time so they can identify fraudulent transactions more quickly and accelerate decision-making and mitigation actions.

 

This use case will become more valuable with the

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