Cybercrimes have accounted for trillions of dollars in losses, and according to recent statistics, the cost to USA’s companies in 2019 was a staggering $2 trillion.
According to Deltec Bank, “In an increasingly data-driven world, businesses are constantly striving to gather operational and customer data, in order to use this important data to gain valuable business insights.”
With such vulnerabilities revolving online, companies are investing heavily in cybersecurity and training employees, particularly regarding online scams and ransomware attacks.
Global security spend
It is estimated that by 2027, global spending on cybersecurity will reach $10 billion. In this new age of IoT, it is very important for all types of business providers, including those in financial and banking institutes, to understand the importance of cybersecurity and the types of cybersecurity threats that are prevalent.
“by 2027, global spending on cybersecurity will reach $10 billion.”
For this reason, traditional companies such as the banking and finance industry and fintech startups are turning to decision optimization technology to maximize opportunities and minimize risks.
According to Deltec Bank, “Powered by the huge capabilities of prescriptive analytics, decision optimization software applies operations research and complex mathematical algorithms to big data.”
Using the power of this new kind of analytics, banks are able to reduce customer service costs, improving the experience and satisfaction of customers, and helping organizations to determine how best to put these plans into place.
“Powered by the huge capabilities of prescriptive analytics, decision optimization software applies operations research and complex mathematical algorithms to big data”.
Banking customers today are more knowledgeable and mobile than ever before. They have a huge range of choices and resources, and they shop carefully for:
- banking products
- including checking and savings accounts
- investment products
These customers have new expectations and require their data to be packaged into personalized advice and benefits, tailored specifically to their financial goals and their own personal needs.
Banks can be challenged to develop new products and solutions that serve customers’ immediate financial needs. In a competitive environment in which fintech firms are quickly becoming serious competition, decision optimization offers the speed and innovation businesses need.
Many firms seek to reduce operational costs and improve processing speed and security. This is often the case for trading firms or financial institutions, where it is paramount in maintaining both transparency and confidentiality during the clearing and settlement process.
This, of course, has to be balanced against regulatory requirements and there is a lot of testing and refining that has to be carried out before new and innovative systems can be introduced seamlessly into existing setups.
Decision optimization delivers technical and infrastructure innovation that can reduce or even eliminate human intervention.
To finish up…
When it comes to security we are constantly being kept on our toes, one refinement in practices comes down the line and it is already outdated! At some point we will have systems in place that can hopefully be immediately responsive …as well as being streamlined and not get in the way of the job at hand! And the costs have surely got to get easier in terms of losses!
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.