Learn to identify, measure and mitigate the risks of digital banking
As the virtual banking industry expands in the Asia Pacific region, many financial institutions are taking advantage of the opportunity to build market share and revenue. The growth of virtual banking opens up new risks which are complicated by the transaction speed and limited transparency inherent to an online banking environment. How are businesses balancing the market opportunities of virtual banking with the risk management challenges it presents?
Our white paper delivers a snapshot of the virtual banking industry in Asia Pacific and explores the considerations businesses should undertake to both succeed and stay compliant in the virtual banking space.
Virtual banks must have processes in place to identify and authenticate prospective account holders but without the benefit of face-to-face interaction that traditional banks enjoy. For returning customers, virtual banks must understand digital identities – how people behave, what their devices are and the anomalies that might be fraudulent or criminal behavior.
Additionally, virtual banks must, at a minimum, understand the eight basic types of risk—credit, interest rate, market, liquidity, operational, reputation, legal and strategic risks—and put into place appropriate systems to identify, measure, monitor and control them.
Financial crime compliance and mitigation are as essential for virtual banks as they are for their brick-and-mortar counterparts. The stakes are high and rapidly increasing, given the speed at which the virtual banking sector is advancing.
Want to know more? Read the LexisNexis® Risk Solutions’ white paper, “Risk Management in Focus for Virtual Banks.“