Reported by: banking|Updated: February 8, 2019
The banking experience has significantly evolved over the last few years. The emergence of new age technologies and changing consumer needs have created a resonating buzz in the banking space across the globe. India has been at the helm of digitization during the last few years, and today, the ripples of this transformation can be felt here as well. The introduction of the Digital India program, demonetization and a push toward digital wallets and online banking, has further fast-tracked the technology journey of the banking sector in India. Owing to these changes, India is rising as a leader of technology adoption in the banking sector.
However, progress is not without challenge. Today, banks have been dealing with problems like multiple entry points attracting attackers, legacy systems, rise of digital savvy millennials in the workforce and complexity issues arising due to the integration of technologies. Having understood the necessity of technology adoption while also realizing the importance of tackling some of the issues that come with it, here are some of the ways in which banks can initiate the change in a positive direction:
In the race to achieve 100% digitization, banking institutes need to make the most of the emerging technologies at hand to cut through the chaos and service their customers better. One of the most important solutions that financial institutions are currently deploying is cloud. Technologies like AI, analytics, mobility etc when integrated with cloud can further enhance the efficiency of this solution. Today, cloud has emerged as the perfect component of an IT tool box for the banking space due to its ability to save cost and offer flexibility, performance enhancement and productivity.
The business landscape has been in a constant state of flux across the globe owing to the growth in data and technology. Businesses are trying to make the most of the data generated to foster accelerated growth. However, these changes have also resulted in a rise in malicious third parties that penetrate systems and access sensitive organizational data. Closer to home, according to a survey by credit information company Experian and IDC, Indians are the most vulnerable to online fraud with India being ranked as the second highest nation in the Asia Pacific region to experience digital fraud.
The BFSI space in India has been the target of many attacks by malicious external threats. Although emerging technological solutions have catapulted growth in the banking sector, they’ve also brought with them complexity and security related challenges that have amped up the risk meter. Therefore, today, organizations across the world have been susceptible to sophisticated and targeted breaches that result in millions of dollars of losses.
Owing to the increasing threat to personal data and the high-risk factor due to new age technologies, establishments across the world have been creating their own version of data protection regulations and policies to safeguard the data of their citizens.
In view of the escalating threat to data, banks need to re-access the security levels of their IT infrastructure and invest in solutions that can help their employees and customers in safeguarding their data.
The constantly changing technology landscape, the growing mountain of data, security regulations and policies have necessitated the presence of a CIO. The CIO in such cases can prove to be instrumental in making sense of this chaos. He will have to reign in the bank’s resources to manage its digitization efforts and ensure that the current IT set-up is in sync with industry standards. Owing to this multi-purpose role that a CIO is tasked with managing, he is gradually donning the hats of a boardroom member, security gatekeeper as well as a skilling expert. Given that we are heading into a digital and mobile future of work, the CIO’s function will prove to be an invaluable asset going forward.
To conclude, banks are required to have a sense of responsibility toward their customers. A responsibility to serve them better, to offer solutions to their problems in the best possible way and safeguard their sensitive personal information. With the evolving nature of technology and the emergence of the “smart consumer”, all eyes will turn toward this space to witness digital adaption.