Mitigating COVID-19’s Effect on Digital Banking

Mitigating COVID-19’s Effect on Digital Banking

Mitigating COVID-19’s Effect on Digital Banking

Mitigating COVID-19’s Effect on Digital Banking

The global COVID-19 pandemic has defined a new normal in almost all aspects of our lives; the online payment and digital banking industry is no exception. While mobile apps were widely used before the pandemic, the sheer amount and capabilities of apps have grown greatly. Consequently, digital banking as we know it has transformed. Services that used to require in-person attendance have moved online for convenience and safety. However, the rapid digitization of banking services has encountered a few obstacles.

The Impact of COVID-19 on Digital Banking Services

Javelin Strategy & Research team’s research outlined four major effects of the pandemic on online banking services

  1. More online payment and banking channels means more targets for fraudsters

With the rapid movement onto online channels, more confidential information is now stored on bank servers. This online shift also means that hackers have more targets for cyber-attacks. According to Finextra’s article, illegal activities have grown exponentially both in frequency and also complexity. Moreover, criminal networks have also become increasingly intertwined and private information is illegally shared on greater scales.

  1. Speedy tech adoptions come at risks

To quickly adapt to the pandemic situation, services that were previously in-person moved onto online channels, often at the expense of app security. The drastic and speedy deterioration of the pandemic situation in 2020 also meant that most banks did not have a chance to run thorough trials prior to implementing heir larger-scaled online payment and service channels. Criminals may take advantage of this situation and steal confidential information.

  1. Increase in Phishing schemes

To ensure the safety of digital banking services, banks have also had to update their digital identity verification and authentication methods to ensure that users are indeed who they claim to be. The U.S. Federal Trade Commission reported that identity theft incidents more than doubled from 2019 to 2020. Clearly, digitization comes with great repercussions if not implemented with great care and caution.

How can we combat these fraud events?

          To protect customers against fraud attempts, banks must quickly recognize and fix the flaws of their digital services. Finextra’s article offers solutions such as more thorough integration of digital services so that information flows steadily between the solution provider and the bank, utilizing highly-adaptable digital services that can be applied to a range of different banking services, and “real-time” analytics processing.


Toppan iDGate’s Digital Banking Solution

For a smooth integration process and a highly secure identity verification and authentication solution in digital banking, consider Toppan iDGate’s online identity solutions. Banks need only integrate our SDK into their system to adopt the most up-to-date authentication technologies. Our solution offers various, user-friendly authentication methods, with full customization to meet every individual bank’s standards. Needless to say, our solution meets all these conditions while actively combating the various fraud attempts that have ravaged the online payment industry. With Toppan iDGate’s highly tailored solutions, you can drastically minimize the risks of digital identity theft and best serve your customers online.

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