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Cybersecurity in banking: Challenges and solutions
Security for both online and in-branch processes remains a major concern for financial institutions. Increasing digitization has widened the attack surface, exposing banks and FinTechs to increasingly sophisticated threats such as phishing, ransomware and financial fraud.
Today, banks, FinTechs and industry companies should focus on:
- Identity fraud resilience: Strengthen the security of your infrastructure and establish effective response plans. According to a study by Allied Market Research, the global market for anti-fraud solutions in banking will reach USD 70 billion by 2026, driven by regulations and the adoption of artificial intelligence technologies.
- Identity management: Institutions must strengthen multifactor authentication and combat threats such as deepfakes and impersonation attacks, using technologies such as advanced biometrics.
The DORA (Digital Operational Resilience Act) Regulation, which will come into force in 2025, will be key to ensuring operational resilience in the financial sector, forcing entities to adapt to stricter regulatory requirements.
Generative AI impact on finance
Artificial intelligence (AI) has transformed the financial industry, and its evolution to generative AI will open up new opportunities in areas such as:
- Analysis of financial data and complex documentation: Enabling faster and more accurate decision making through OCR and document management solutions.
- Automation of administrative tasks: Optimizing treasury and accounting management.
Use cases include AI in bank lending, where algorithms can assess credit risks more efficiently, or automating customer service through conversational AI. According to a Gartner report, 75% of financial institutions will use AI for full or partial process automation by 2026.
Automation and financial optimization through AI
AI-driven automation continues to revolutionize the way companies manage their financial operations. According to DocuWare's Mauricio Valencia Ochoa, technologies such as process automation improve operational efficiency and reduce costs. Key areas of impact include:
- Optimization of payment processes: AI enables proactive detection of anomalies and fraud prevention.
- Financial forecasting: AI tools can forecast market fluctuations and adjust financial strategy in real time.
- Know Your Business: KYB business verification solutions with bank scraping and AI screening are already enabling new high-growth business models previously not viable without this technology.
A McKinsey report estimates that financial automation could save companies up to USD 4 trillion annually by 2027.
eIDAS 2 and the future of digital identity
The eIDAS 2 regulation will be crucial in defining the digital identity landscape in Europe. This regulation will enable greater interoperability of trust services across the EU, ensuring the validity of electronic signatures and other authentication tools in BFSI areas.
The combination of NFC, the new eIDAS2 digital wallets and biometrics will enhance layered authentication and biometrics, being key to authenticate users more securely and perform full KYC processes in seconds with advanced customer due diligence controls.
The global digital identity market will grow at 22% annually between 2025 and 2029, driven by the increasing demand for secure solutions and the expansion of regulations such as eIDAS 2 and EUDI Wallets.
Innovation in financial technologies: DeFi and tokenization
The Decentralized Finance (DeFi) ecosystem and tokenization are reshaping traditional finance. In 2024, FinTechs will continue to explore new business models through the issuance of tokens and the use of smart contracts to facilitate secure transactions without intermediaries.
- Tokenization of assets: From real estate to financial assets, tokenization allows the fractionation and democratization of investment.
- DeFi Ecosystem: According to DeFi Pulse, the value locked in DeFi protocols reached USD 50 billion in 2023, and is projected to continue to grow.
Cryptoassets and CBDCs
The adoption of cryptocurrencies and central bank digital currencies (CBDCs) will continue to increase. According to the Bank for International Settlements (BIS), 90% of the world's central banks are researching or developing CBDCs.
In parallel, the Cryptoasset Markets Pilot Regime (MiCA) and its associated regulations will seek to establish a clear legal framework for the issuance and trading of cryptoassets in Europe. This framework will regulate the transparency, security and operability of cryptocurrency service providers.
The goal is to provide a secure environment for both investors and companies wishing to operate in this space, which promises to accelerate innovation and adoption of these assets.
Alternative investments and Venture Capital
Alternative investments and Venture Capital are gaining ground as growth drivers, especially in emerging sectors such as Health Tech and FinTech. According to PitchBook data, investment in FinTech startups globally exceeded USD 40 billion in 2023, and is expected to grow by 15% annually until 2025.
Sectors such as Health Tech stand out as key investment areas, with companies developing innovative solutions that improve quality of life through technology. Venture capital will continue to be critical in driving innovation in FinTech, especially in emerging technologies such as Web3 and blockchain.
Financial inclusion and social impact of FinTechs
FinTechs play a key role in financial inclusion, enabling access to financial services for unbanked populations. According to the World Bank, more than 1.7 billion people still do not have access to formal bank accounts, and FinTechs are well positioned to change this reality.
- Inclusive business models: Many innovative startups are developing solutions that promote financial inclusion through digital tools.
- Alternative financing: The rise of crowdfunding and peer-to-peer lending platforms is democratizing access to capital for small businesses and entrepreneurs.
These trends not only drive innovation in the financial sector, but also have a positive impact on society, closing the gap between those who have and those who do not have access to financial services.
In the immediate future, the financial sector will undergo a transformation driven by technological innovation and regulatory changes. Artificial intelligence, cybersecurity, cryptoassets, digital identity and financial inclusion will be key themes. FinTech will continue to play a pivotal role in the evolution of the industry, with new opportunities and challenges on the horizon. The future of finance is digital, inclusive and resilient.
