Digitalisation and Security in the Finance World
Technology has seen rapid advancements over the past 20 years and digitalisation has extended to almost every aspect of our lives.
Samsung mobiles are now accompanied by VR headsets and Apple are about to release their latest addition – the iPhone X. Alongside this, we’ve also seen a rise in digital currency, specifically Bitcoin. None of these things were around ten years ago, so how have they impacted the finance industry?
One of the biggest concerns for the relationship between digitalisation and the finance industry is security of personal details. There have been several high profile cyber attacks on big businesses (aiming to gain customers personal information).
For example, last year Tesco Bank was attacked where hackers were able to steal thousands of pounds from unsuspecting account holders. Tesco reacted by freezing accounts whilst it sorted the issue to ensure the security of funds.
Recent events, such as the rise of “hacktivist” group Anonymous, who are thought to have attacked at least eight monetary authorities last year, have re-installed fear of finance protection.
Unlike an old school bank heist, cyber hackers are able to gain access to funds, along with a number of personal details. This has lead to increasing concerns over personal security and privacy.
To combat this, businesses in the finance world need to ensure that they can provide reliable, secure ways of handling data in the digital world to give comfort to the general public.
There are a number of technologies that can help to control errors and reduce risks, for example Blockchain technology.
This new technology has been created to help control errors and prevent hacking in finance. Blockchain stores (you’ve guessed it) blocks of information across the whole of its network. These blocks of information are identical, making it harder to access and change. The system in place has tight security which is extremely difficult to override.
When in use in financial trading, blockchain technology allows users to view every detail of the trades that have taken place – even who did what and when they did it.
It appears to be the software that will safeguard the finance world and put the public’s mind at ease.
As technology continues to grow, the risks of hacking in the finance world will also heighten. Prevention is key and new technologies such as blockchain will work to prevent the hacking of personal information and reduce fraud.
Digitisation will always pose new challenges for security but also present new and improved ways of advancing the industry.
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