The Role Of Cloud Computing And Big Data In Real-Time Payment Processing And Financial Fraud Detection

Abstract

The use of cloud computing technology and the processing of big data has revolutionized the banking, financial, and insurance industry by paving the way for time-sensitive and anytime, anywhere payment and settlement transactions. The cost of hardware and software processing has significantly reduced, along with the increase in processing speed and low-latency connectivity, with the per-node processing and storage speed of each cloud system growing exponentially over the last few decades. With the increased availability of computer resources, the repetitive tasks of data mining, fraud modeling, and detection can be reworked periodically without additional costs and effort, enabling better-detecting capabilities. The text presents how computer systems will evolve to support the radical advances in financial systems and the speeding of real-space real-time financial transactions, changes in the working pattern of the financial systems through continuously monitoring the transaction flow by developing and deploying systems that use big data analytics, apply machine-learning and AI seamlessly to be processed live by the cyber-systems engaged in payment and settlement services, and build trustworthy systems that can credibly provide necessary services complying with essential properties, with built-in failures and risk tolerance capabilities.

Cloud computing services and big data analytics applications are uniquely positioned to support value-adding, wisdom-creating services by transforming the easily customizable transactional processing infrastructures to synapses with high availability, flexible resource assignments, and with minimal service components accessed by the client, thereby acting as a service mother-board with implantable service chips, and with stripped-down components and capabilities enabling fault detection and fast recovery from failures.