Internet loose the customer confidence and trust which

Internet of Things(IOT)

The Indian banking industry’s operating models have been impacted and at
the same time influenced the banking ecosystem by the new technologies, digital
devices and the pace of innovation. The most promising of these technologies
include cloud computing, big data analytics, artificial intelligence and robotic
process automation, blockchain and the Internet of Things (IoT). Many of these
technologies are interrelated which can be helpful in improving the efficiency of
the banking system.

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Application
of IoT in Indian banking system :

IoT can be useful to banks in providing the same functions in  less time and hence, increasing the
efficiency of the existing banking system. By building on early success with
IOT, banks and other financial firms are experimenting with new ways to :

§ 
Improvement in the customer experience

§ 
Provide enhanced insights from a risk

§ 
Increase agility and speed to market

§ 
Enhance customer engagement

§ 
Reduction in the  operating costs

§ 
Increased in the revenue

 

 

 

 

 

According
to a survey, it was found that 64.5% of global banking executives monitored
their customers through mobile apps on smartphones, tablets and other digital
devices.

In
addition, 31.6% of banking organizations used the IoT to monitor retail
locations (e.g., bank branches), 21.1% used digital sensors to gather product
performance data and 15.8% used IoT sensors in wearables to track customer
product usage.

 

 

 

 

 

 

 

 

 

Cyber security

 

There is a prominent shift in the
banking industry in the way customers deal with their transactions. People have
increased their usage of digital channels such as internet banking, digital
wallets, mobile banking, ATM. This digital exposure has led to cyber attacks
which further may lead to financial losses. Banks are afraid that they may
loose the customer confidence and trust which can further increase the impact.

 

What
are the key drivers for banks to invest in cyber security ?

·        
Secure
sensitive customer information

·        
Fortify
IT Processes and Systems

·        
Customer
demands for convenience and payment security

·        
Adhere
to regulatory requirements

 

Cyber
security trends in banking system :

With increasing risks of cyber
threats, banks are facing an unprecedented challenge of data breaches and are
therefore strengthening their cyber security postures. The following are the
noticeable trends in banking industry from cyber security point of view:

·        
It
has been estimated that cost of implementing and managing the cyber security
infrastructure will increase over 40% by 2025

·        
Customers
are using biometrics for banking activities such as authentication for mobile
banking, transaction at ATMs and payments

·        
With
digital channels becoming the preference choice of customers for banking
services, banks will also need to leverage advanced authentication and access
control processes, without any compromise to customer experience

·        
There
is an increase in biometrics and tokenization as banks have begun to recognize
that in addition to being a solution for payments these controls are also
useful in security the sensitive data

 

 

Security
considerations for Indian banking system

There are some important security
considerations which are important for the bank .While each bank thinks
distinctively on adopting various considerations it is imperative to assume
that the theme remains the same for various banking channels:

1.   
Internet
Banking: Security
controls like multi factor authentication, creation of strong passwords,
adaptive authentication, image authentication, etc. can be considered.

2.   
Mobile
Banking: It should be
ensured that mobile applications are up to date and should be tested. Latest
hardening standards could be implemented.

3.   
Wallet
Transactions:
Awareness material on Phishing, Malware attacks, vishing and social
engineering, Password security etc. should be incorporated.

4.   
ATM
Security: Biometrics
like eye-retina, voice scan or fingerprint scan should be introduced by Banks.

5.   
UPI
(Unified Payment Interface):
Banks and PSPs need to think through their security strategies, governance
models and predictive controls to build a secure UPI environment that ensures a
seamless user experience and at the same time balances security risks.

 

 

 

 

 

Augmented Reality

 

What is Augmented
reality ?

Augmented reality (AR) is a technology through which a
real world environment is created or augmented by computer aided devices.

                                                                                            

Significance of Augmented Reality in Indian banking
system:

As the world is changing rapidly and so are the banking
systems with the mobile banking apps and digitization of banking systems, so
the future of branches is doubtful. Augmented reality will help the customers
who for some reason are not able to visit the bank branches will be able to do
so without actually physically being present. Customers will be able to fix a
meeting with the bank staff through AR technology.

This will help in improving the operational efficiency of the
Indian banking system. This will not only improve the customer interaction but
also speed up the growth process.

The use of Augmented reality in the existing banking system
can lead to reduction in the cost of banks as they will not have tpo invest in
the physical bank branches.

One such example is Citibank which was the first bank to
adopt AR and make a virtual desk for trading which enable traders to visualise
and make decisions collaboratively with clients. 

 

 What should banks currently be focusing on ?

Banks
need to leverage this augmented reality concept by focusing on all the interactions
with the customers.  This will help the Indian
banking system to get a fair idea as to how AR can be deployed to provide
excellent customer services in less time.

This
AR process implementation will help in the faster decision making process and
help in data visualisation and provide useful customer insights to deliver the
seamless experience customers demand.

In
the near future banking systems will be benefitted from the AR technology by
providing comfort to their customers through virtual face to face interaction
with the banking personels. AR technology is the future and banks must utilise
the technology and integrate their banking systems with it to provide a
revolutionary customer experience.

 

 

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