Key trends and issues in adopting instant payments (Part 2)
As bank processing increasingly becomes real time, cyber crime is following suit.
Real-time processing puts more pressure on bank cybersecurity systems. With traditional batch processing there is time to check and monitor for unauthorized activity, but when payments go real time, the same checks have to happen in milliseconds.
The survey asked, “How big of a challenge is cybersecurity?” An astounding 96% of respondents said it was either their biggest challenge or a big challenge. The combination of increasing cyber threats and the move to real-time processing creates the perfect storm for banks and other financial institutions, with more cyber attacks likely to make the headlines in the future. Doing more of the same or trying to fine-tune batch-based systems will not necessarily fix the problem. A complete review of financial crime processing and cyber protection should be conducted, with processes and systems transformed, as necessary. The good news from the research is that many banks are aware of this and are acting on it.
In the next part of this blog series, we’ll look at some of the other research findings, including the trend toward value-added services made possible by the move to open APIs, as well as who should pay for the move to real-time payments and assume liability for instant payment legal issues.