INTEGRATING AI WITH BLOCKCHAIN FOR ENHANCED FINANCIAL SERVICES SECURITY

Authors

  • Olubusola Odeyemi Independent Researcher, Chicago USA
  • Chinwe Chinazo Okoye Access Bank Plc, Nigeria
  • Onyeka Chrisanctus Ofodile Sanctus Maris Concepts, Nigeria Ltd
  • Omotayo Bukola Adeoye Independent Researcher, Chicago, IL, USA
  • Wilhelmina Afua Addy Independent Researcher, Maryland, USA
  • Adeola Olusola Ajayi-Nifise Department of Business Administration, Skinner School of Business, Trevecca Nazarene University, USA

DOI:

https://doi.org/10.51594/farj.v6i3.855

Abstract

Integrating artificial intelligence (AI) with blockchain technology presents a transformative approach to enhancing security in financial services. This fusion leverages the strengths of both AI and blockchain to mitigate various security risks, including fraud, data breaches, and identity theft, thereby bolstering trust and confidence in financial transactions. This abstract explores the synergies between AI and blockchain, highlighting their combined capabilities, applications, and potential benefits for the financial services industry. AI algorithms, including machine learning and natural language processing, empower financial institutions to analyze vast amounts of data in real-time, identifying patterns, anomalies, and suspicious activities indicative of fraudulent behavior. By integrating AI-powered fraud detection systems with blockchain-based transactional networks, organizations can enhance security and transparency throughout the entire financial ecosystem. Blockchain's immutable ledger ensures the integrity and traceability of transactions, while AI algorithms provide advanced analytics and predictive insights to detect and prevent fraudulent activities effectively. Furthermore, AI-driven identity verification and authentication systems enhance security in digital transactions by accurately verifying user identities and detecting unauthorized access attempts. By integrating AI-based biometric authentication with blockchain-based identity management solutions, financial institutions can streamline customer onboarding processes, enhance security, and protect sensitive information from unauthorized access. Moreover, AI-powered smart contracts automate and enforce the execution of contractual agreements, reducing the risk of fraud, errors, and disputes in financial transactions. By combining AI-driven smart contract platforms with blockchain technology, organizations can facilitate secure, transparent, and tamper-proof transactions, eliminating intermediaries and reducing transaction costs. The integration of AI with blockchain also offers opportunities for regulatory compliance and risk management in financial services. AI-powered regulatory compliance solutions analyze vast amounts of regulatory data, identify compliance risks, and ensure adherence to regulatory requirements. By integrating these solutions with blockchain-based regulatory reporting systems, financial institutions can enhance transparency, auditability, and regulatory oversight, fostering trust and compliance in the financial ecosystem. In conclusion, the integration of AI with blockchain technology holds immense potential for enhancing security in financial services. By harnessing the combined capabilities of AI and blockchain, organizations can detect and prevent fraudulent activities, enhance identity verification and authentication, streamline transaction processes, and ensure regulatory compliance. This abstract underscores the transformative impact of integrating AI with blockchain on security in financial services, paving the way for a more secure, efficient, and trusted financial ecosystem..

Keywords:  Al, Blockchain, Enhanced, Financial, Services Security.

Published

2024-03-09 — Updated on 2024-03-15

Issue

Section

Articles