The fast growth of digital technology has introduced Neobanks stated Bahaa Abdul Hussein. These are financial institutions that function online alone. They offer a wide range of banking services. They are different from traditional banks as they offer these services without the need for physical branches. Nowadays, with many people interested in online banking, many have started to embrace Neobanks. So, it becomes important to ensure the safety of web-based financial services to customers. Here are certain things done by Neobanks to ensure the safety of data and transaction safety to customers:
Secure and Encryption Protocols:
Neobanks use robust encryption techniques for safeguarding financial transactions and other user data. They employ advanced cryptographic algorithms to crawl sensitive information. So, these details remain unreadable to unauthorized people. Secure protocols like HTTP are also used by Neobank for establishing secure connections between Neobank servers and users. As a result, data tampering during transmission is prevented.
2FA or Two-Factor Authentication:
To gain an additional layer of security, Neobanks usually implement double-factor or two-factor authentication. It means that users are required to provide a couple of different forms of verification to access their Neobank accounts. Accordingly, users are asked to use a combination of passwords and unique verification codes sent to their smartphones. This method of double verification considerably reduces the risk of unauthorized access. This will happen even if the password of a user is compromised.
Biometric Authentication:
Many Neobanks use biometric authentication technologies like facial recognition or fingerprints. By doing this, they are able to ensure the security of user data. Biometric verification is a unique and highly secure form of authentication as biometric data is unique to each individual. By incorporating biometrics into the login process, Neobanks offer an extra layer of protection against unauthorized access and identity theft.
Fraud Detection and Continuous Monitoring:
To ensure the safety of digital financial services, Neobanks use sophisticated monitoring systems to hinder and spot fraudulent activities. These systems evaluate user behavior and transaction patterns and also other indicators to spot suspicious activities. Neobanks can take quick action to mitigate the risk and safeguard user funds and accounts. Further, Neobanks often have devoted security teams that actively keep an eye on and respond to security threats in real time.
Regulatory Standards and Compliance:
Neobanks follow different compliance requirements and regulatory standards for ensuring the security of customer transactions and data. They must follow regulations like General Data Protection Regulation and will have to implement robust data protection techniques. When they follow these standards, Neobanks can maintain the confidentiality, availability and integrity of user information.
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