Benefits of Virtual Private Networks (VPNs) to Banks

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Banks services have become critical than ever, especially with the introduction of online and mobile money transactions. Consequently, data security has become an important part of bank services with each organization harnessing security between inter-branch networks. Virtual Private Networks (VPNs) is a cybernetic network that creates a secure data tunnel from one site to another. Reliable VPN services provide secure end-to-end connection via public networks, a solution that is often used by banks to curb hacking and cyber fraud. Here are the benefits of Virtual Private Networks (VPNs) to banks.

Secure Networks

Most bank set aside budget for expansion in order to increase customer base and returns. While such expansions sound fairly manageable, banks have to plan for data security risks and implement security measures to manage data integrity. VPN IP-based solutions can be implemented in bank services such as remote ATMs to enhance data security between remote sites. VPNs provide secure data connections over internet and other public networks through data encryption and authentication.

Confidentiality

Every day, banks need to share information between headquarters and branches, branch-to-branch or one bank to another. Some of the shared information is highly confidential and should reach the intended destination against security threats such eavesdropping, phishing, and hacking. Virtual Private Network is a solution that maintains secure data transmissions between remote sites with high level of confidentiality.

Data Integrity

Although it’s possible to transmit confidential data via public networks such as internet, information can be altered or diverted on transit from one site to another. VPS based solutions such as Message-Authentication Codes (MACs), Hash Functions and Digital Signatures can be used to ensure that information is not altered, changed or diverted during transmission.

User Authentication

Communicating parties and terminals between networks (computer-to-computer, computer-to-mobile phone, computer-to-server etc.) need to properly identify themselves. VPNs provide secure authentication method through passwords, Multi factor authentication, Digital certificates etc. Banks can use such methods to authenticate remote terminals for secure communication.

Cost Saving

Data security breaches such as eavesdropping, phishing and hacking can cause huge loss, especially when clients’ confidential information is leaked or funds are diverted. Banks can use cost effective VPN solutions to route data and information securely over public networks, and especially on networks with erratic bandwidth. Also, VPNs come with value added services such as network bandwidth management. Banks can use such services to allocate bandwidth on demand during pick hours or when performing mission critical transactions.

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