The growth of digital banking has brought the unbanked population with in the banking mainframe.
Digital banking and utilisation by consumers in India has increased. This trend is further set to rise with the support of government’s Digital India initiative and a digital push in the financial sectors especially the banking industry. The amalgamation of both these forces continues to play a vital role in the vision of financial inclusion by getting the unbanked population in the banking mainframe. This digitalisation has led to a positive shift to online consumer banking which has seen increased momentum but thereby leading to a new found threat on information security and combating fraud linked with such digitalisation.
This calls for the need of putting together a framework where banks should not compromise on consumer information security. It is estimated that approximately Rs 17,000 crore were lost in 2017. To evolve the identification and mitigation system for fraud, the banks and regulatory bodies are already catering to the changing dynamics of the fraud ecosystem. We hope to see some new-age changes in that domain.
Public-private partnership will need to be the first line of defence against fraudsters. The government should devise policies and budget allocations accordingly, keeping in mind these requirements. It is the growing need of the digital hour to ensure that the consumer information is protected, and secure the vision of a Digital India.
Managing Director & Country Manager Experian India