The impact of AI-based cyber security on the banking and financial sectors

Abstract

BD and AI are now transforming the banking and finance industry at a very fast pace, which is leading to change in the banking and finance institutions. This change is making them better, customer-oriented and financially rewarding organizations. Big data and AI have been useful in the banking and financial institutions to assess and manage the risks. Through the analysis of big amounts of unstructured data in real time, AI algorithms are capable of identifying risks. This makes it easy to put preventive measures in place to avert the risks. In addition, big data and AI have come a long way in solving the problem of fraud in banking and finance. This paper showed how big data and AI improve risk management, Cyber threat, and fraud in banking and finance by using data analysis and data pattern identification in real-time. That is why our work emphasizes the importance of implementing secure privacy and explaining the AI algorithm to eliminate ethical and Cyber security issues. Using analytical approaches, AI can identify the transactions with the help of comparison with the previous data and the behavioral characteristics related to the fraud. This approach to fraud prevention has been effective in reducing losses while at the same time improving the customer’s confidence in the company. On the other hand, there are disadvantages of big data and AI such as privacy, security, and ethical issues. Measures that can be used to safeguard customer information have to be employed in order to effectively safeguard the consumer data. Furthermore, transparency and accountability of the AI algorithms are crucial in order to avoid unfair decisions.