Download our report to find out how financial institutions in China are safeguarding their digital products and channels in an age of increased digital adoption.
of FIs predict an increase in scams and malware attacks in the next year
of FIs use data from interconnected devices, alongside public data
of FIs plan to invest in new endpoint threat detection solutions next year
In this report, we analyse emerging trends in China’s financial institutions (FIs), their digitalisation priorities and existing gaps in fraud control and mitigation.
The study gauges the digitalisation priorities of FIs, assessing key fraud and security challenges, as well as evaluating the existing gaps that need to be overcome to mitigate fraud in a rapidly digitalising world.
Digitisation is increasing, with increased impetus from regulators to support the economy through digital finance. Digital adoption is predicted to grow in the coming years, albeit slower than regional peers.
Regulatory supervision and compliance cost challenges rise as new directives push FIs to boost cyber risk, data, and risk management capabilities. With increased regulatory supervision of fintech and big tech, a key concern for most banks has been the increased costs for compliance.
Organisation integration across compliance, fraud and cybersecurity is still lacking in almost one-third of FIs. The more siloed structure could present a challenge in efficient fraud management and compliance.
Continual skill development is happening in less FIs across China. FIs will need to take a holistic approach and recognise the key role of people, processes and technology in risk control and continually upgrade staff to meet evolving needs.
Scaling fraud detection measures emerged as the top challenge for Chinese FIs in growing digital transactions. Where the last year saw an increase in cyberattacks and fraud incidents, FIs expect scams and malware incidents to rise in the next year.
Machine learning (ML) and endpoint threat detection are key priorities for Chinese FIs for fraud prevention. New endpoint threat detection solutions will be the biggest investment component against fraud in the coming year.