Banks Can Tackle Financial Fraud with New Homomorphic Encryption Technology
Insights gained from financial data have the potential to drive profit and improve customer satisfaction. However, the finance and insurance industries face strict regulatory compliance needs and stringent security measures. Leakage of customer data not only damages reputation and customer relationships but also leads to hefty fines for businesses. To combat these challenges, banks and financial institutions can leverage the power of homomorphic encryption technology to ensure data remains protected and encrypted while still allowing for valuable insights.
According to Simon Bain, CEO at OmniIndex, employing this technology is crucial to unlock immense potential and minimize the threat of fraud and criminal activities. Valuable data is often encrypted and siloed due to its vulnerable and regulated nature, making it inaccessible for analytics and other productivity solutions.
Traditional storage methods, such as in-house servers and hybrid-cloud technology, keep data away from both users and criminals. However, this approach also hinders running queries and analytics on the data due to its compartmentalization and encryption. Moreover, secure sharing between departments becomes challenging, resulting in reduced data monetization and decreased day-to-day efficiency.
Web3 technology and innovative homomorphic encryption provide a solution by allowing computations to be performed on fully encrypted data, delivering actionable insights without exposing the information. Encrypted data can seamlessly integrate with other tools to create live data visualizations and dashboards, fostering secure and straightforward sharing among team members.
One practical application of this technology is using a Small Language Model (SLM) to conduct real-time AI analytics on fully encrypted data. By identifying patterns and anomalies, potential fraud can be detected without ever compromising the sensitive and confidential information.
Legacy systems lack the ability to incorporate AI due to the regulatory and confidentiality requirements of financial data. However, the utilization of Web3 and fully homomorphic encryption technologies empowers businesses to combat the most significant threats to customer data today.
Aside from fraud detection, the potential applications of this technology include risk mitigation, regulatory compliance, real-time customer sentiment analysis, quality control, and insight generation for new product development. By leveraging cutting-edge encryption technology, banks can safeguard customer data while harnessing valuable insights to drive their success.
Analyst comment
Positive news: Banks Can Tackle Financial Fraud with New Homomorphic Encryption Technology
As an analyst, I predict that the market for homomorphic encryption technology will see significant growth as banks and financial institutions recognize its potential to combat fraud and improve data security. This technology allows for valuable insights to be gained from encrypted data, leading to better decision-making and increased efficiency in the finance industry. It also enables secure sharing and collaboration between departments, enhancing data monetization and day-to-day operations. Overall, the adoption of homomorphic encryption will help banks safeguard customer data while driving their success.
