Page 26 - GS220301

CoverStory

trust end-to-end digitization of bank processes with AI- actions, they noted, with feel-good moments at checkout
based automation," he said. "Extreme digitization grants that replace generic messages and throwaway receipts. Se-
banks new opportunities to operate at lower costs and en- curity service providers are detecting anomalies in nano-
gage with clients more openly--staying relevant whenever seconds using AI, machine learning and advanced auto-
and wherever it matters for clients." mated technologies, analysts pointed out.

Sironi further noted that hybrid cloud computing plat- Rob Hanlon, CEO at CyberMoney, characterized his digi-
forms support BaaS and other partner-driven ecosystems. tal payments app's dynamic checkout screen as an outside-
However, researchers found transitioning hybrid cloud in approach that leverages a valuable piece of real estate.
environments may yield unintended consequences by ex- "The last thing a merchant's customer sees after transact-
posing organizations to new threats. Built-in compliance ing can be used for anything," he said. "When your cus-
products can help detect and mitigate these risks, he add- tomers complete a transaction, you can show them a cus-
ed. "Boards rightly view cloud technology as a strategic tomized landing window with an instant offer or compel-
driver and enabler of further business performance and ling brand story instead of a generic thank you message."
shareholder returns," IBM researchers wrote. "But when
considering cloud migration and digital transformation, Chris Boncimino, CEO at Flow Networks, called his com-
CROs, in partnership with technology and compliance pany's digital receipt an engagement engine designed to
leadership teams, can help keep a sharp focus on resilien- help card issuers and merchants reach and retain custom-
cy by identifying attendant risks and potential remedia- ers. "A receipt is a legal document that can end up at the
tions." bottom of a trash can," he said. "The Flow platform, trig-
gered during payment, connects the unconnected points
Inside-out security in the payments journey while providing secure and

Shaun Smith-Taylor, global head of solutions at ThetaRay, private digital receipts back to the originating payment
agreed compliance is essential to bank transformation, source."
especially given quickly changing geopolitical environ-
ments. To build secure, compliant systems, banks need Mark Gazit, CEO at ThetaRay, described real-time fraud
security solutions that protect against tomorrow's threats, detection as a proportionate response to automated at-
not just today's, he stated, recommending artificial intelli- tacks. "Nobody sits at a computer and attacks thousands
gence as a way to identify and protect against known and of computers; it's software doing it," he said. "Programmed
unknown threats. "Banks and processors need to leverage AI systematically scans and attacks organizations. Perpe-
third-party services to protect their hybrid cloud environ- trators have been using AI for quite some time and we have
ments," Smith-Taylor said. "Banks and processors should an obligation to create even stronger AI-based systems to
outsource key controls to ensure data security and regu- protect ourselves. It is the only way to remain effective."
latory compliance. Partnering with market leaders, who
have implemented live, next-generation technology solu- Kevin Gosschalk, CEO and co-founder at Arkose Labs,
tions is key to success, security and scale." emphasized the need for smart, digitized, agile fraud de-
tection. His company uses AI and advanced technologies
Mario Galatovic, vice president, products and alliances at to get into the mindset of fraudsters and bankrupt the
Utimaco, pointed out that having a strong security pos- business model of fraud, he stated. "As the world becomes
ture is nothing new for financial institutions. "The previ- more digital and economic turmoil continues, heightened
ous generation's dominant paradigm of having all of an attack levels are here to stay," he said. "Businesses need
organization's assets under one roof had a number of dis- long-term strategies to defend against high velocity fraud
advantages when it came to flexibility and scaling, but its and abuse."
major advantage was that security professionals had vis- Blurring physical, virtual
ibility of their entire infrastructure," he said. "If a piece of
this infrastructure needed to be updated to remove a vul- As any engineer will tell you, innovation can be a messy
nerability, they could do it, and if it remained a liability, it process and digitization is not always neat or linear. New
could be taken offline." Galatovic suggested banks need payment solutions do not always replace incumbent tech-
abundant trust and transparency to navigate the new in- nologies; instead, they find ways to coexist. However,
teroperable paradigm: trust that partners and partners' solutions that combine physical and digital attributes or
partners are not exposing them to risk, transparency in extend compliance to commercial off-the-shelf (COTS) de-
the cloud, and a supply chain that gives companies more vices, provide more choices in apps, currencies, payment
than one pair of eyes to spot problems and keep compo- schemes and authentication methods, experts have noted.
nents secure, compliant and up to date.
Colin Greene, payments consultant and operating partner
Outside-in transactions at Praetura Ventures, called PCI SPoC (Software-based
According to payments analysts, when it comes to scal- PIN entry on COTS) and CPoC (Contactless Payments on
ing digital commerce, discussions have mostly focused on COTS) standards revolutionary developments that allow
growth, overlooking how commerce scales down to infini- smartphones and tablets to stand in for traditional POS
tesimal. Fintechs are enriching the tiniest parts of trans- and mPOS solutions.

26