Cyber security critical for digital banking success: SBI official

Cyber security is critical for the success of digital banking and banks should create the infrastructure to win customers' trust for all such transactions, a senior State Bank of Indiaofficial said on Wednesday.

Digital banking or figital is here to stay, and is the future but it is equally important to safeguard the interests of all stakeholders, State Bank of India (SBI) Deputy Managing Director and Chief Digital Officer Ravindra Pandey said at a webinar.

"It is important to win the customers' trust in any system. It is the objective of banks to create and win the customers' trust, such that all transactions are routed through banks as is presently done by multiple payment apps," Ravindra was quoted as saying in a release issued by industry body PHD Chamber of Commerce and Industry.

The official said that fintech has brought about changes in the customer mindset and it is an era of techfins rather than fintech.

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Digital banking has helped in enhancing customer relationship, engagement, and satisfaction, and reduced operating cost, processing cycle time, among others, he added.

Digital banking is thriving on artificial intelligence and technical algorithm models which help to find out the customer's ability as well as the intention to pay, along with credit ratings of the customer.

According to the official, conventional operating models have given way to new channels. There are three areas in fintech that need to be intertwined to make it a success — payment and remittance; process improvement compliance and risk management; and customer engagement, he noted.

Sanjay Aggarwal, President of PHD Chamber of Commerce and Industry, said the banking industry is moving towards a more collaborative and open environment while focusing on data protection and minimising systemic risks.

Representatives from fintech companies, NBFCs, and other financial sectors also participated in the webinar.