Banking and transaction monitoring

Specifics of Transaction Monitoring in Banking

In recent years, payment systems based on bank cards have been actively developing all over the world. The convenience of making payments using bank cards and savings when switching from cash to non-cash, the ability to provide additional services to bank card holders – all this and much more led to the rapid development of this market.

The Evolution of Monitoring of Banking Transactions

The current development of the national and world economies cannot be imagined without transactions in banking. Therefore, all debates about the types of asset pooling, capital concentration, and the impact of mergers and acquisitions on domestic and global competition are still relevant today, since the second half of the XX century. One of the main factors in the development of the world economy is scientific and technological progress, which determines the economic and social prerequisites for the formation of production and financial markets of national economies.

The number of bank customers is growing, the process of their verification is becoming more complicated, and regulatory requirements are also becoming tougher. To manage reputational risk and fines in such an environment, banks need effective technology solutions. Although some banks have already begun to implement automation of monitoring transactions on customer accounts, it has not yet become widespread.

Almost any operation – from the accrual of interest on deposits to complex intra-bank operations with currency – falls under the definition of a “transaction”. In a broad sense, banking transactions are various operations with finances and accounts. In a narrower sense, these are operations of bank card holders using an electronic account (a receipt of cash, salaries, and scholarships, transferring money, paying bills); bank transfers from account to account without plastic cards; money transfers without opening an account, just a bank account management system and many other options.

Fraud on customer bank cards leads to the risks to the issuing bank associated with financial losses and deterioration of reputation. Therefore, the issuing bank in its payment system of bank cards must develop and apply a special information security policy, implement risk management measures, and implement methods and tools for detecting and countering fraud.

What Are the Main Specifics of Transaction Monitoring in Banking?

Transaction monitoring allows you to test a website or web application by sending requests over HTTP, verifying their response, and measuring their performance. This can be a simple test to determine if a site is responding or a complex set of queries to simulate a user doing things like logging into the site and browsing through a set of pages. In addition to general accessibility, you can test the functionality of a website by testing various pages and features.

Take a look at the next specifics to consider for transaction monitoring in banking:

  • Risk and Transaction Monitoring Systems.
  • Opportunity Cost.
  • Case Management and Audit Trail.
  • Transaction Monitoring Systems and False Positives.
  • Expertise and Guidance.
  • Hidden Cost.
  • Transaction Monitoring System Rule Complexity.
  • New Rule Configuration.

If we talk about what bank customers face on a regular basis, then transactions are absolutely commonplace. Another thing is that not everyone thinks about what they are constantly doing with their money and what it is called. For example, you can test the login process by performing a test login with a test user account every few minutes. You can test the functionality of the search page by performing a sample search after logging into a test user account.