Category: Technology

Welcome to our Technology category, a dedicated hub crafted to explore and delve into the latest technological trends reverberating through the fintech industry. As an innovative fintech entity, we stand firmly in our belief in the transformative power of technology. We see it as the catalyst reshaping the financial landscape, making it more efficient, secure, and customer-oriented.

The articles housed in this category dive into a multitude of tech-centric topics. We discuss everything from the role of artificial intelligence and machine learning in reshaping finance to the profound impact of blockchain on financial transactions. Our objective is to provide an exhaustive perspective of the tech landscape, spotlighting how technological advancements are revolutionizing the financial industry and opening up new avenues of opportunity.

At Signzy, we harness the power of cutting-edge technologies to craft our innovative fintech solutions. We remain steadfast in our commitment to stay at the forefront of technological advancements, continuously evolving our product offerings to deliver the best, most efficient solutions to our clients.

Whether you’re a fintech professional immersed in the sector, a technology enthusiast passionate about the latest developments, or simply an individual curious about how technology is driving transformation in finance, our Technology category offers a wealth of valuable insights.

We cordially invite you to join us on this fascinating journey as we explore the world of fintech technology, discussing its pivotal role in shaping the future of finance. Step into this exciting realm with us, as we unravel how technology is not just influencing, but defining the next generation of financial services.

Business Growth

Top 10 Must Have API Qualities For Business Growth

Posted on | by Signzian

According to MarketsandMarkets, the API management sector is projected to be worth $5.1 billion by 2023, at a CAGR of 32.9%. The lion’s share of this comes from the investment and financial technology sectors. Although the number of transactions might be relatively low, the amounts transferred are rather high here. That’s where API is revolutionizing the ecosystem.

APIs have long been hailed as the foundation for revolutionizing financial technology in the investment sector. However, not all APIs are made equal, despite their ability to alter how investment data is maintained and moved within the fund sector. Some qualities are essential when looking at an API-first solution for investment management:

1) Security In The Investment Sector

Any modern API will include strong validation, encrypted transmission, and robust authentication (at a bare minimum). In addition, the sensitive customer data that is virtually always stored by investment platforms (such as names, addresses, portfolio holdings, and national insurance numbers) needs to be protected. Errors are unacceptable when it comes to safeguarding your clients’ data.

2) Low Entry Barrier

New API users ought to have a low entrance barrier. We discover that a standard like OpenAPI (also known as Swagger) gives developers a comfortable experience. Shortening deployment times will also be assisted by accessing Software Development Kits (SDKs). A solid SDK will handle the most mundane activities, allowing users to tackle their business growth problems immediately (e.g., building a new asset allocation algorithm or integrating with a new custodian).

3) Apt Documentation

Any API you use should be thoroughly documented and include numerous examples. Both the technical elements of the API and use-cases should be covered in the documentation. For instance, “How do I execute a valuation with a custom price source?” or “What are the minimal field names and data types required to update a trade?”

4) Logical Building Blocks With Synergy

You would want logical and practical abstractions and resources represented via API endpoints. For instance, a different Instruments and Holdings endpoint will be available on practically all investment management platforms. These endpoints ought to operate in unison (we call this composability). For example, you should be able to take the details of the instruments from the Holdings response and use these to call for more information about the instruments from the Instruments endpoint.

5) Adopt Premium Standards

A high-quality API should adhere to internationally accepted standards. The onboarding process for new users is improved when familiar standards are used (and applications). An illustration of this is the REST architectural style, which uses the HTTP standard verbs (GET, POST, etc.). As a result, developers don’t need to carefully read the system documentation to realize that a “PUT holdings” request replaces (rather than changes) all of the holdings in your portfolio. Industry standards can also aid in processing API data by applications and machinery. For instance, we prefer JSON because it is supported by rich libraries in all essential programming languages.

6) Consistent And Persistent Implementation

A top-notch API should apply naming conventions and standard features uniformly across all endpoints. For instance, a Holdings endpoint and a Transactions endpoint might need to deliver a reference to an exclusive instrument in an attribute. To provide the best user experience, that attribute should have the same name (perhaps something like InstrumentId) in both endpoints. Standard features across all APIs should also be consistent. For example, do your APIs have any filtering functionality? If so, the operators and syntax used in those filtering statements across all endpoints should be the same.

After determining the mandatory features in an API-first platform, let’s now look at some of how an API-first solution can give you improved access to your investment data.

7) External Systems Integration

By offering a “common language” for these systems to communicate, an API-first platform should enable smooth integration between various systems in your financial technology stack. For instance, an Order Management System (OMS) and a Portfolio Management System will often have a continuous data flow between investment managers (PMS). Therefore, it is possible to guarantee that both systems are constantly updated with accurate data by using an API-first platform as the foundational integration layer. To ensure that your portfolio managers are constantly making decisions based on the best information, for instance, you might want orders raised from the PMS to reach the OMS promptly and for the PMS to be updated with transactions from the OMS in real-time.

8) Data Access Control

Granular entitlements that are simple to administer will be present on an excellent API-first platform, giving administrators complete control over the data that particular users and groups are permitted to access. With everyone having simple access to the information they require but no one having access to data they shouldn’t, you will be able to achieve the ideal data entitlement.

9) Rapid Data Onboarding

For a client, do you need to onboard a new ESG data set? Or have your data strategists found any further information that could be mined for alpha? Your teams will be able to quickly extract the most value possible from new data if you have a reliable pipeline that pumps it into your ecosystem and has an intuitive API with a flexible data model. This is the evolution in financial technology we seek for business growth.

10) Transparency For End-Users In The Development Process

API suppliers can easily involve customers in the development process thanks to the microservice model of API-first platforms, where loosely connected services are delivered and maintained individually. In addition, users can test new functionality early and take part in the feedback loop during early revisions of an API endpoint thanks to the separation of endpoints into “Production,” “Beta,” and “Experimental.”

Why Choosing An API Provider is Crucial

As the sector deals primarily with large amounts of money, there is no space for even the slightest errors. Mostly these errors are human-made. Thus one of the prerequisites you can have while transforming your processes is to automate the processes with a reliable decision engine. This should be done without compromising the investor’s experience or their safety.

With Signzy’s No-code AI-driven decision engine integrated API that’s fully customizable, you will get the apt resources you seek. In addition, we have a dedicated collection of Investment APIs that includes investor onboarding features, verification processes, and much more. Check it out here.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Garnering the Gig Economy- 3 Ways The Fintech Industry Leverages AI To Enhance The Gig Workforce

Posted on | by Signzian

In 2021, there were nearly 23.9 million independent/gig workers comprising the Gig economy in the United States, an increase from 12.9 million in 2017, according to the 2022 Gig Payments Report. The study further illuminates that 85% of respondents have increased their gig work, and 58% cited inflation as their primary reason for this. The number of workers is still growing with rising inflation, pandemic-era job losses, and the work-life balance mindset.

Conventional financial services are not tailored for the needs of gig workers. This is because many banks focus more on premium and higher-income customers. Additionally, they lack access to data about the financial behaviors of gig workers, who often have to keep their financial activity unregistered. Their paychecks often fluctuate with jobs coming and going from one month to the next. This lack of a steady income means these workers struggle to access investment accounts, loans, insurance, and other financial products. They are also likely to face difficulties paying for unexpected emergencies, such as costly medical treatments.

For fintech industry companies, an opportunity awaits. Many financial technology ventures have recognized these workers as potential customers who are underserved by the traditional banks and are now playing a pivotal role in powering the Gig economy. We at Signzy like to stay ahead of the curve and have been focusing on providing financial technology services that are easy to use without compromising quality. Let’s see how all this has helped the growing sector.

AI From Fintech Industry Companies For Gig economy

Gig Payments Report states that gig workers prioritize speedy service while receiving payments. For example, 70% prefer to receive their payment on the same day they work while 39% choose immediately after each job. Only 29% prefer it at the end of each day. Additionally, with rising inflation impacting work and personal expenses for 57% of respondents, timely access to funds is crucial for their financial needs.

With a gargantuan gig economy workforce looking to financial sector to manage their finances, there are bound to be support-related queries that follow. So how can the support teams of financial technology companies rise to offer the much-needed support, especially that which aligns with the preferences and expectations of their customers today? Herein lies the chance for these companies to immediately incorporate modern AI-powered support systems into their technology stacks to resolve all customer issues.

Meeting Customers Where They Are

Not bound to any location, gig workers are constantly moving. AI-powered solutions provide resolutions across channels through email, messaging, chat, SMS, and voice for support when they require it the most. Most of Signzy’s API resources enable the institutions with remote-friendly solutions. This can be for onboarding, KYC, etc.

Moreover, they are constantly busy, and gig work is often a side hustle that supplements their income (Branch and Marqeta’s report defines only 27% rely on gig work as their major source of income). By leveraging AI, fintech companies can offer proactive customer service – addressing a customer’s issue before they encounter one- by detecting or anticipating the problem in advance and extending the necessary support to resolve it. Some of the use cases are:

  • Warning a customer that their bill is soon due.
  • Reminding customers to transfer balances from one account to another.
  • Alerting customers that there may be an improved savings account option than their current one.

Such proactive, preemptive, and predictive support is much needed for the workforce. We ensure that you get it at Signzy.

Fast, Immediate Solutions

Terraforming the customer support landscape, AI-powered chatbots for customer service have become significantly efficient by delivering personalized solutions immediately and automatically for a truly effortless experience. In addition, AI can automate resolutions to high-volume, repeatable tickets like paying monthly bills and resetting passwords, freeing up human agents to focus on the more complex issues and decreasing resolution times. The result? Faster and more consistent customer support, and less fielding of common and repetitive problems for the support team.

For example, suppose a customer has doubts about the loan application process. In that case, a chatbot could efficiently provide a relevant article from a company’s knowledge base that covers this topic in detail. Furthermore, if it is connected to the correct backend systems, it can even provide the real-time status of applications.

AI-driven solutions enable fintech companies to improve their support for customers’ needs. This includes access to 24/7 support outside of standard working hours when support teams are unavailable to respond to queries. This also reduces the cost of keeping a human support team on standby in case of an unexpected ticket spike. In addition, this type of support is ideal for gig workers who work irregular schedules but still need support access from their financial service provider. One of the emphasized areas Signzy focuses on is this kind of support for our clients. We ensure to take care of everyone.

What Signzy Is Adding To The Growth

Signzy has been in the fintech industry for nearly a decade now. We began with the idea of having fully customizable AI-driven automated solutions for all onboarding and KYC problems. But since its inception, we have kept in mind the further horizons we would explore. The time is nigh, and we are helping out in all the industries we can. With the Gig economy, we believe our services can provide a strong foothold in ensuring the right customers for all financial institutions. We make sure to make it simple for everyone.

About Signzy

Signzy is a market-leading platform redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

Cryptocurrencies

How Will Cryptocurrencies affect Fintech?

Posted on | by Signzian

In 2020 the world cryptocurrencies and blockchain market was estimated to be $1.49 billion. By 2030, it is expected to reach $4.94 billion, growing at a 12.8% CAGR from 2021 to 2030. Even with the current wavering scenarios, it is clear that they have an upward trajectory in the long run. Although cryptocurrencies haven’t achieved absolute consumer acceptance yet, there is little doubt that they will form an integral part of the financial ecosystem in the future.

Fintechs will likely be well impacted by multiple cryptocurrency availability and its adoption growth. Below we elaborate on how cryptocurrency, blockchain’s future, and the fintech industry are increasingly intertwined.

Decrypting Crypto

Cryptocurrencies are digital currencies not issued or regulated by any central authority, such as a federal or state government. Instead, they are generally stored in a more decentralized fashion. Some of these currencies, like Facebook’s Libra, are initially meant to be centralized, with long-term plans to be decentralized.

When a cryptocurrency is specifically decentralized (for example- Bitcoin), transactions are verified with the use of blockchain technology. Blockchain is a well-distributed, decentralized, accessible public ledger. In other words, it’s a public database of relevant digital information. Furthermore, the use of blockchain technology is a vitally secure mode of storing data as it is virtually near impossible to manipulate without significant detection.

Thus, cryptocurrencies are very secure virtual currencies with decentralized nature. As a result, they are not subject to government interference or regulation, as with traditional currencies.

Newer Fintech Industry Horizons With Cryptocurrencies

Cryptocurrencies are not well understood by the regular banking consumer residing in a country with a stabilized main currency. Therefore, unless the consumers are early adopters, they don’t have much incentive to primarily adopt crypto over the regular options and may even see the digital currencies as too risky.

However, cryptocurrencies are significantly more popular and have extensive adoption rates in regions of the world with multiple unstable currencies. A good example was when the bolivar experienced swift devaluation in Venezuela; many cryptocurrencies gained considerable access as a more stable and reliable option.

Cryptocurrencies are also specifically relevant to nearly 1 billion people across the globe. These people have mobile devices but may not have bank accounts. Being “unbanked,” they can’t use conventional financial products. But they can use those built on selected cryptocurrencies.

In both these cases, cryptocurrencies help open up newer markets where Fintechs find consumers who benefit from their products.

Better Money Transfers With Cryptocurrencies

One of the fintech consumers’ biggest complaints with conventional financial companies is the excruciatingly sluggish pace of transaction approval caused by the many layers of bureaucracy such approvals usually entail. Anyone who has tried to transfer money from one bank to another across borders is undoubtedly acquainted with how tiresome the process can be. Even transferring money between institutions in the same country is often riddled with delays and inefficiencies.

Because they are created on secure and decentralized public ledgers, cryptocurrencies can be taken back and forth much more swiftly than traditional currencies. This has the extra effect of considerably reducing transaction costs.

Transparency, speed, and convenience -are the cornerstones of any Fintech innovation, and cryptocurrencies are part of what makes it possible to create solutions based on the same principles.

Cryptocurrencies To Reduce Financial Fraud

Even as disruptors Fintechs face the exact issues around identity theft, fraud, and money laundering as any legacy financial company does, thwarting such hurdles is time-consuming, challenging, and labor intensive.

Because cryptocurrencies are created on distributed and decentralized ledgers, their specific transaction records are verified easily. Furthermore, provided the secure nature and use of blockchain technology, these particular records cannot be particularly manipulated or obscured, rendering fraud prevention a much less costly and tedious enterprise for Fintechs.

Fintech innovation has been an impactful disruptive force in the financial technology industry. Over the past decade, financial services and products have changed dramatically as Fintech solutions have offered consumers more appealing alternatives to traditional products.

Newer Paths In The Fintech Industry

In decades to come, cryptocurrencies will play a more significant role in forming emerging Fintech innovations by unlocking novel markets and supporting efficiency and convenience in all product offerings. However, it’s not just crypto that will transform the industry. Considering the rate at which innovation occurs in the fintech space, financial companies require the best products and services for their customers. It is vital to ensure that the customer is welcomed with a convenient yet secure onboarding experience. Check out Signzy’s AI-driven state-of-the-art customizable no-code resources to see what fits your needs.

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. In addition, it gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru and has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com.

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Developing A Secure FinTech Application: Cybersecurity In FinTech

Posted on | by Signzian

When it comes to FinTech applications, cybersecurity is of paramount importance. In an industry where data security and privacy are of the utmost concern, any breach could have devastating consequences. That’s why it’s so important to make sure your FinTech application is as secure as possible.

But, how do you go about developing a secure FinTech application? Before you even start to think about that, we’d like to run you through some crucial stats:

  • More than $50 billion are invested each year in FinTech
  • 2 out of three transactions are made online
  • By 2030, the global FinTech market is expected to be worth $698.48 billion, growing at a CAGR of 20.3% from 2021 to 2030.
  • There are currently over 12,000 FinTech startups worldwide, with 500+ new FinTechs being created every year.

Now that you have a better understanding of the scope and significance of the FinTech industry, let’s take a look at how to develop a secure FinTech application.

But First, Cybersecurity!

How not to expose the personal data of nearly 145.5 million of your consumers in a single day, resulting in a $4 billion loss? Definitely don’t ask Equifax – a company that was responsible for one of the largest data breaches in history. The 2017 Equifax breach resulted in the exposure of names, Social Security numbers, birth dates, addresses, and driver’s licence numbers. But that’s not all – hackers also gained access to credit card numbers for more than 200,000 people and disputed documents with personal information for more than 182,000 people.

In short – it was a catastrophe. And it could have easily been avoided if proper cybersecurity measures were in place.

Secure FinTech Cybersecurity Challenges

When it comes to FinTech cybersecurity, there are a few key challenges that need to be addressed:

  1. Data Security And Privacy: In FinTech, data security is the top concern as 70% of banks consulted during the Sixth Annual Bank Survey. In the wake of high-profile data breaches, consumers are increasingly concerned about the security of their data. As a result, FinTech companies must go above and beyond to ensure that data is properly protected.
  2. Payment Security: With the rise of mobile payments, FinTech companies must be extra vigilant when it comes to payment security. Any breach could result in stolen funds or sensitive financial information.
  3. Fraud Prevention: The popularity of FinTech applications is contributing to the increase in cybercrime and fraud attempts. FinTech companies need to have strong fraud prevention measures in place to protect their customers.
  4. Employee security: In many cases, the weakest link in a company’s cybersecurity is its own employees. FinTech companies need to make sure that their employees are properly trained and educated on best practices for cybersecurity.

Secure FinTech Regulations And Policies

In addition to implementing strong cybersecurity measures, FinTech companies also need to be aware of the various regulations and policies that govern their industry. These include:

1. GDPR: The General Data Protection Regulation (GDPR) is a set of regulations that were introduced in 2018 to protect the personal data of individuals in the European Union. The GDPR applies to any company that processes or intends to process the personal data of individuals in the EU.

2. eIDAS: The European Union’s eIDAS regulation is a set of standards that govern electronic identification and trust services. The regulation applies to any company that offers electronic identification, signatures, or other trust services within the EU.

3. PSD2: The Payment Services Directive 2 (PSD2) is a set of regulations that were introduced in 2018 to improve the safety and security of online payments in the European Union. The PSD2 applies to any company that offers payment services within the EU.

4. PCI DSS: The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that aims to protect the payment data of cardholders. The standard applies to any company that processes, stores, or transmits credit card information in any way.

5. APPI: The Association for Payment and Clearing Services (APPI) is a set of guidelines that were introduced in 2017 to protect the payment data of cardholders. The APPI applies to any company that offers e-commerce services within East Africa.

Secure FinTech Cybersecurity Solutions

So, how do you make sure your FinTech application is secure? Here are some tips:

1. Use Encryption

Data encryption is incredibly important when it comes to data security. As a FinTech company, you should never store your customers’ sensitive information in plaintext. Always use industry-standard encryption algorithms and protocols, such as 3DES or RSA – they can ensure that even if your data is stolen, it will be difficult for hackers to decipher and use.

2. Role-Based Authentication

Role-based authentication restricts access to data based on the user’s role (administrator, sales representative, etc.). This can help prevent unauthorized users from accessing sensitive information and make it easier for security teams to monitor access patterns.

With the varying access level requirements of different users within a FinTech application, role-based authentication can provide a seamless and secure experience that’s tailored to each user.

3. Multi-Factor Authentication

Multi-factor authentication adds an extra layer of security by requiring additional steps before authorizing access to data. This could include receiving a text message with a code or using biometric identification (fingerprint scanning, facial recognition software, etc.) to verify identity.

Multi-factor authentication also protects against phishing attacks, as it prevents hackers from accessing your application through fake login pages.

4. Short Login Sessions

Another way to increase security is to require users to re-authenticate after a period of inactivity. This will help prevent unauthorized access if a user’s device is lost or stolen.

Reduced session time can also reduce the risk of attacks that use brute-force methods to guess account credentials.

5. Force Password Change

Finally, to further protect your customers’ data, you may want to consider mandating users to change their passwords periodically. This can help prevent hackers from gaining access by guessing weak or compromised passwords.

To create a truly secure FinTech application, you must take these steps and leverage the latest cybersecurity technologies and best practices. And as always, make sure you partner with a trustworthy IT provider who will work with you every step of the way!

About Signzy

Signzy is a market-leading platform that is redefining the speed, accuracy, and experience of how financial institutions are onboarding customers and businesses – using the digital medium. The company’s award-winning no-code GO platform delivers seamless, end-to-end, and multi-channel onboarding journeys while offering totally customizable workflows. It gives these players access to an aggregated marketplace of 240+ bespoke APIs that can be easily added to any workflow with simple widgets.

Signzy is enabling ten million+ end customer and business onboarding every month at a success rate of 99% while reducing the speed to market from 6 months to 3-4 weeks. It works with over 240+ FIs globally, including the 4 largest banks in India, a Top 3 acquiring Bank in the US, and has a robust global partnership with Mastercard and Microsoft. The company’s product team is based out of Bengaluru, and it has a strong presence in Mumbai, New York, and Dubai.

Visit www.signzy.com for more information about us.

You can reach out to our team at reachout@signzy.com

Written By:

Signzy

Written by an insightful Signzian intent on learning and sharing knowledge.

 

Algorithmic Risk Intelligence: The Future of Risk Management

Posted on | by Signzian

Introduction

The world is becoming more and more data-driven. As a result, data has become the lifeblood of many industries. Organizations are starting to realize the value of collecting and analyzing data to make intelligent decisions. However, this can be challenging if your organization does not have a proven framework for quantitative analysis. Algorithmic risk intelligence is a new way of systematically thinking about data risks with a few key considerations: how significant the potential impact is, the probability of occurrence, and how feasible it would be to prevent or mitigate the risk. Understanding these three factors will allow you to identify your most critical risks and give you an idea of where to focus your efforts when it comes time to prioritize which risks you need to address.

 

Utilization of historical data to build predictive models

The utilization of historical data to build predictive models is a common practice. It can be done by using the ARIMA approach.

ARIMA (Autoregressive Integrated Moving Average) is a technique that uses historical data to predict future values, which can be used to make better decisions. It uses past information to forecast the future. These methods are powerful, but they are also quite complex, and they require more advanced statistical knowledge to make them work properly. Using historical data to build predictive models is essential to algorithmic risk intelligence. 

Utilizing historical data to build predictive models will help you identify risk areas, but it does not mean you should stop there. It would be best to look at other factors that are not captured in the model. For example, you should be looking at data that will help you identify new or emerging risks.

Measurement, quantification, and anticipation roles of ARI

Algorithmic risk intelligence is about understanding, quantifying, and anticipating the risks that matter to your organization. It is a new way of systematically thinking about data risks with a few key considerations: how significant the potential impact is, the probability of occurrence, and how feasible it would be to prevent or mitigate the risk. Understanding these three factors will allow you to identify your most critical risks and give you an idea of where to focus your efforts when it comes time to prioritize which risks you need to address.

Some other vital roles that ARI can play in an organization are measurement, quantification, and anticipation. Measurement is about understanding the scope and magnitude of potential risk. Quantification is about estimating the probability of a risk occurring. Finally, anticipation is about developing a plan to prevent or mitigate risk from occurring.

There are many types of data in the digital world that could be used as a subset of ARI. The three most prominent types are customer, company, and industry data. Customer data includes customer preferences, personal data, customer service records, and customer behavior patterns. Company data has an organizational structure, size, history, and personnel records. Finally, industry data includes information like market trends. 

 

ARI to reduce business loss due to unforeseen circumstances

ARI is a systematic way of understanding your data risks. It can help you identify the most critical risks you need to address and help you prioritize the ones you need to address.

ARI is a framework that includes three key considerations: the risk’s potential, probability, and feasibility. With these three factors in mind, you can create a plan for mitigating your data risks.

ARI is ideal because it can be applied to any data, and it can start with a minor concern and grow into a full-blown disaster recovery plan.

Role of ARI to uncover organization’s most critical surfaces

As we rely on digital technologies to grow and expand, the risk of data breaches and other cyber risks continues to grow. Therefore, it’s critical to understand each risk’s potential impact and probability of occurrence and decide what you need to do to mitigate the risk.

It is where algorithmic risk intelligence (ARI) comes in. ARI is a new way of thinking about data risks systematically. It has three considerations:

(1) How significant the potential impact is

(2) what is the probability of occurrence is 

(3) how feasible it would be to prevent or mitigate the risk.

Understanding these three factors will allow you to identify your most critical risks and give you an idea of where to focus your efforts when it comes time to prioritize which risks you need to address.

How can Signzy help?

Fintech companies must safeguard sensitive customer data to reduce data risks. But how can this be accomplished?

You can depend on us to help you in that regard. We at Signzy have a variety of AI-based solutions to digitally identify, verify, and authenticate customers, moreover helping in ensuring complete security. Our solution for onboarding security has been deployed by more than 45 significant and valued clients. These include leading banks, NBFCs, mutual fund managers, P2P lending banks, digital payment solutions, etc. Thus, making it promising and easier to trust us.

Writtern By:

Vaishali Bharadwaj
Vaishali is a machine learning enthusiast. Besides machine learning and data storytelling, she likes contemporary art, traveling, and Ice Skating. Since Vaishali was young, she has always enjoyed solving puzzles. So that’s how she looks at big data sets: to Vaishali, it is one big puzzle she wants to solve. Finding patterns nobody else sees is a challenge to her.

 

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