Cognitive Computing - A Path Opener for Banking Digitalization and Security

Security threat is always a bigger concern for the financial institutions. In today’s global economy, the information shared across various entities and industries have to be 100% accurate and secure. Financial data is the backbone of any Organization. Banks are managing financial data on behalf of customer which involves secure data transmission across various related entities. Financial Institutions have positioned or trademarked themselves to whom any one can believe. Because of trust the bank customers (individual /corporate) safely keep their earnings/ money with the bank. Vice Versa banks/ financial institutions also invest a lot to make their network more secure.

Let us understand and discuss how the newest Cognitive technology can enhance the banks security system for identifying their own customers and authenticate the transaction.

What is Cognitive Computing?

At present, there is no widely agreed upon definition for cognitive computing. It is most frequently used as marketing jargon.

Cognitive Computing is a new type of computing with the goal of more accurate models of how the human brain/mind senses, a reason, and respond to a stimulus. The term cognitive computing has been used to refer to new hardware and/or software that mimics the functioning of the human brain and helps to improve the decision-making.

Key features:

Business Use Cases Applicability for Cognitive Technology on Banking

Cognitive computing has created the buzz as a subject to a great deal over the years and there continues to be a struggle with finding a non-proprietary definition. As cognitive computing platforms have emerged and become commercially available, evidence of real-world applications are starting to surface. Organizations that adopt and use these cognitive computing platforms, purpose-build applications to address specific business use cases that are relevant to their internal and external users, with each application using some combination of available functionality necessary for the use case.

Below are some of the real world use case:

• Speech Recognition
• Face Detection
• Bio-metric Identification
• Sentiments Analysis
• Behavioral Analysis

These above use cases can be used in the banking industry to make the security system much more robust and efficient. This technology will be making the peripheral systems more active and decision oriented working.

Banks can adapt this technology to move a step forward for an automated and paperless environment.   Through artificial Intelligence, Machine Learning, Neural Languages, Data Mining, Pattern Recognition, Speech Recognition will be taught to the machines as a mimic the way human brain works.

How Cognitive computing will help in the space of Identifying and recognizing the legitimacy of Customer?

As a onetime activity Banks Customers will be required to share their face, voice (fingerprint, retina scan) with multiple expressions and get it registered with Bank. Now customers will be on-boarded successfully to the banking platform.

Face Recognition:

Banks can enable the face recognition as a security authentication factor for the Customers to use.

Where it can be used?

Banks can use this feature for serving their customer better. Customers will be allowed to do the following:

• Identify yourself for login
• Identify yourself for cash withdraw at ATM (No need of any ATM Card – Go Card Less)
• Identify yourself for cash withdraw at Bank Branch (No need of any pay-slip or withdraw slip filling – Go empty Less)
• Initiate Authorize Payments
• Pay your Bills
• Transfer Money Online
• Request for Account statement

Speech/ Voice Recognition:

Banks can enable the speech/ voice recognition as a security authentication factor for the Customers to search and initiate a process function. 

Where it can be used?

Banks can use this feature for serving their customer better. Customers will be allowed to do the following:

• Identify yourself for login
• Amount required as cash withdraw at ATM (No need of any ATM Card – Go Card Less)
• Amount required for cash withdraw at Bank Branch (No need of any pay-slip or withdraw slip filling – Go empty hand)
• Search the biller or payee from registered biller list
• Initiate Payments process or fund transfer/ credit transfer request
• Request for Account statement
• Initiate a new investment service
• Request for new service enablement in the banking list and many more

What problems it can solve?

Cognitive computing can be used as a security enabled factor for authentication. It creates the opportunity for making the ecosystem more secure.

The main aim of cognitive computing is to make the systems, use the machine learning algorithms and acquire knowledge from the data fed into. The systems refine the way they look for patterns and as well as the way they process data, so they become capable of anticipating new problems and modeling for possible solutions.

This can be an opportunity for the bank to make the banking ecosystem more robust and secure. It will be a step forward for banks to make use of two factor authentication process. Cognitive computing can be used for making the decision support system more effective and efficient.