The Best Ways To Guard Retail Banking and Business Banking Solutions

In today’s digital age, where convenience meets technology at every corner, the importance of cybersecurity within retail banking solutions and business banking solutions cannot be overstated. The 2023 AFP Payments Fraud and Control Survey by J.P. Morgan highlighted a concerning trend: 65 percent of organizations experienced attempts or successful payments fraud last year. Newly released Federal Trade Commission data show that consumers reported losing more than $10 billion to fraud in 2023, marking the first time that fraud losses have reached that benchmark. This marks a 14% increase over reported losses in 2022. This alarming statistic underscores the urgency for financial institutions to bolster their defenses, especially as the Automated Clearing House (ACH) Network saw a staggering 30 billion payments, amounting to $76.7 trillion, processed in 2022 alone. The rise of Same Day ACH payments has only added fuel to the fire, making it imperative for banks and credit unions to stay ahead of increasingly sophisticated cyberhackers.

The advent of artificial intelligence (AI) brings with it both opportunities and challenges. While AI can enhance user experiences and streamline operations, it also provides fraudsters with powerful tools to mimic human interactions, posing significant threats to both financial institutions and their customers, members, or commercial accounts. Educating oneself on the tactics used by these cybercriminals is the first step toward safeguarding assets and reputations.

For financial institutions, the reputation and trust they build within their community are invaluable. A single data breach or loss of funds can have devastating effects on the very people and businesses who rely on these institutions for their financial guidance. Thus, implementing multi-faceted security measures is not just a recommendation; it’s a necessity.

Among the Must-Haves for Ensuring the Security of Digital Banking Platforms Are:

• Secure Digital Account Opening Streamlining the application process while utilizing advanced customer identification methods to minimize friction and enhance security.
• Positive Pay Providing business users with the ability to halt unauthorized ACH and check payments, coupled with the deployment of actionable alerts for quick transaction authorization.
• Monitoring and Alerts Implementing dark web monitoring and real-time alerts to stay ahead of potential threats.
• A Layered Security Approach Utilizing two-factor authentication, one-time passcodes, and behavioral biometrics to create a comprehensive defense mechanism against cyber threats.

As digital payments become more ingrained in our daily transactions, the financial sector’s commitment to cybersecurity must evolve concurrently. This includes keeping abreast of the latest in electronic payments, peer-to-peer payment options like Zelle, check protections, and advanced fraud detection methods.

For retail banking, protecting your institution means adopting a system capable of uncovering threat intelligence and thwarting phishing, pharming, and malware attacks through a multi-layered security strategy. This not only defends your users but also your institution’s infrastructure.

For business banking adherence to Federal Financial Institutions Examination Council (FFIEC) compliance objectives is crucial. Selecting the right digital banking platform and partnering with the appropriate third-party vendors can enhance security layers, safeguarding against account takeovers, unauthorized transaction changes, and fraudulent checks.

Moreover, Financial Institutions Should Employ Strategic Tactics To Engage and Retain Account Holders and Commercial Accounts, Such As:

• Evaluating account holder and business segments based on profitability
• Leveraging data for personalized product recommendations
• Identifying and addressing financial outflows to competitors
• Digitally offering essential services to businesses
• Engaging Gen Z with appealing offers and tools

Budgeting for technologies that empower personal financial management, glean data insights, automate marketing efforts, and provide a comprehensive suite of business banking tools will be instrumental in staying competitive and secure in the digital banking landscape. Incorporating influencer campaigns, digital and social media, and video content creation into your strategy can further enhance engagement and security awareness.

For financial institutions looking to navigate the complexities of digital banking and cybersecurity, Alkami offers a suite of solutions designed to protect and empower both businesses and consumers.

In an era where speed and convenience often come with heightened risks, investing in the right technologies and strategies is paramount for the safety and satisfaction of all stakeholders in the financial ecosystem.

Explore how Alkami’s offerings can elevate your institution’s digital banking experience and security.