Banking and FinTech Cybersecurity Predictions for 2021

What’s in store for cybersecurity in the banking and FinTech sectors for 2021? The experts weigh in:

Gen Z Will Lead the Shift to Open Banking

“In 2021, we will see significant international growth in the open banking industry as it democratizes financial services. In recent years, Europe has been the center of a new movement towards customer-centric banking using open banking to build new consumer banking apps, but open banking is gaining momentum in the U.S. as well with Venmo and SoFi. Now, Gen Z has grown up using opening bank apps to manage their personal finances and transfer large amounts of money, rather than traditional banks. As a result, we will see an influx of software companies being founded with the purpose of creating a new method for digital-first consumers to do banking. To keep up with the growing demand for these easy-to-use digital banking solutions, banks have now embarked on the same journey by introducing similar types of mobile apps designed to make customers’ financial lives more productive and seamless.” – Jasen Meece, CEO of Cloudentity

More AI, machine learning, biometrics and fewer passwords

“A massive transformation is occurring across digital and mobile channels in how banks engage with their customers and use AI. Banks will combine machine learning with biometrics to provide new experiences, such as facial and fingerprint verification instead of passwords. One example we’re already seeing is banks leveraging machine learning to detect and read physical passports to allow for ID scanning. Customers use their smartphones to scan a government-issued ID and then take a selfie. The banks then leverage biometric facial comparison technologies with liveness detection to verify that ID is authentic and unaltered, confirming the individual’s identity.”

• Benoit Grange, Chief Technology Evangelist, OneSpan 

Digital banking standards will emerge to safeguard the use of payment platforms fueled by cutting-edge technologies such as AI, ML and Blockchain

“Technologies including artificial intelligence (AI), machine learning (ML) and Blockchain have been at the forefront of disrupting the banking industry for years. The pandemic has further exposed the holes in the banking industry as they rely heavily on dated legacy systems, leaving them vulnerable to fraud. This will be the year that banks will be forced to implement a standardized body of standardized regulations to regulate the emergence of technologies in digital payments.”

– Eric Solis, CEO of MovoCash