Digital banking and mobile financial transactions far outstrip traditional banking in many parts of the world. How do we keep these transactions safe and secure? Got Questions? Get Answers on LIVEcommunity.
By Sebastien Cervantes
World Population Day, celebrated every July 11th, is meant to highlight the most pressing issues of the global population. In parts of the world with the fastest-growing populations, more people rely on online banking as an alternative option to traditional banking. These include countries with burgeoning economies and young, technologically savvy users that previously had limited access to banks and financial services.
As populations in the developing world increase and access to digital banking becomes a greater necessity, the need for more rigorous cybersecurity to protect online transactions and safeguard databases from potential threats and fraud will play an increasingly vital role in the financial future of the world economy.
Digital banking has far outstripped traditional physical banking in parts of Southeast Asia and sub-Saharan Africa. According to the Bill and Melinda Gates foundation, “About 1.7 billion people worldwide are excluded from formal financial services, such as savings, payments, insurance, and credit.”
Cyber and data breaches are the most significant challenges financial institutions report that they face. Enter Palo Alto Networks, the cybersecurity partner of choice for now, for the future.
In the past six years, over 1.2 billion people have turned from cash economies to mobile money services. Digital banking is the most popular banking method in over fourteen African nations. By 2020, the mobile money system is Africa is estimated to be worth $14 billion dollars. And millennial customers under 30 in Southeast Asia – roughly estimated at 315 million– are 50% more likely to use digital banking than older generations.
However, the increase in digital banking has corresponded with an increase in customer cyber fraud and hacking attempts on banking websites. Cyber and data breaches are the most significant challenges financial institutions report that they face. A combination of poor online security on the part of banks and a lack of knowledge of online security risks by customers means that finding cybersecurity solutions is more important than ever.
This World Population Day, the global population is estimated at 7.5 billion. By 2021, three billion of those individuals will have electronic access to digital banking services. Cybersecurity will remain the most prominent issue for those who rely on digital banking and financial institutions seeking to offer their digital services to new markets. To serve the needs of the growing world, cybersecurity will have to take its place as the most valuable asset of the financial future.