The fintech industry has witnessed the emergence of innovations which facilitates the integrated financial services over a single mobile interface. Fintech serves as the next generation of financial services, wherein technology-powered companies and new markets embrace tech-driven innovation in traditional banking.
Indian fintech is in the top five markets by the value of capital funding and investments. According to Gartner, in the next two years, out of the total technology spending of the Indian banking sector, 23% is done for the digitization of internal services. Technology leaders in the financial sector have prioritized legacy modernization as compared to other industries. They also foresee that the banking and security sector in India continues to increase its investment in digital business.
Furthermore, in 2019, the Reserve Bank of India (RBI) allowed fintech to try out their innovations in a restricted ecosystem, which foreshadows well for the broader fintech industry in India.
With the rise in digital adoption, banks have also witnessed a surge in cyberattacks as cybercriminals are finding new opportunities and vulnerabilities to exploit, which has posed severe concerns for Indian banks and RBI.
The sudden outbreak of COVID-19 has put the spotlight on digital technologies, such as cloud, artificial intelligence (AI), analytics, and machine learning (ML). The swell in digitization and remote operations has exposed the financial sector to breaches. Bank executives and digital leaders need to analyze and prepare themselves to respond to cyber incidents.
Cyber risks have shifted to cyber skulduggery − stealing customer debit and credit card data; siphoning off funds through reprogrammed Automated Teller Machines (ATMs); affecting the banking network’s productivity and money laundering through sophisticated software programmes and network algorithms.
Traditional banks need a proactive approach to protect their data, application, identity, infrastructure, and cloud. Security leaders will have to regularly address security gaps, design a security roadmap, and plan strategic investment decisions in cybersecurity core domains relevant to business needs and risk appetite.
Building a secure cashless ecosystem
Banks have always been the principal targets of cyber attacks, as hackers deal with a large amount of Personally Identifiable Information (PII) and financial data. To prevail competitively and enhance customer satisfaction, banks ought to forecast the fate of consumer payments.
According to KPMG, digital payments in the country are expanding at a CAGR of 12.7%. Digital payments are promising to be entirely cashless but carry additional challenges in reliability, security and convenience. As India shifts its focus towards a cashless economy, it is critical to understand the importance of secure digital payments.
For a robust cashless ecosystem, it is essential for gear up the adoption of digital
payments. However, security concerns and lack of awareness act as key barriers. The security architecture must ensure confidentiality, integrity, authenticity and non-repeatability. It is a must to establish a sturdy encrypted communication channel between the customer and payment, along with periodic risk management analysis and security vulnerability assessment of the application.
Endpoints or user devices used for digital payments are a major concern
End-user devices like smartphones usually lack various security tools – such as antivirus, anti-phishing, etc. This results in exposing the user to cybersecurity risks. During a transaction, businesses are more convenient by the use of mobile devices. However, it also exposes organizations to security risks. Lack of user awareness due to various reasons and concentrated attacks through infected applications lead to security incidents.
Get the basics right for secure digital payments
It is obligatory to design a structured approach to security, deploying secure cybersecurity frameworks and identifying the key business assets and protecting them. Evaluating and establishing adequate measures for protection from third-party risks is essential.
Installing user identity authentication for transactions, inducing the advanced authentication measures are equally important. Quick and effective cyber response is another key aspect to secure digital payments.
To build a secure digital channel, businesses need self-assessment tools to navigate through the changing security landscape. Enterprises need to strengthen the skills of cybersecurity professionals and enhance the fundamentals of cybersecurity technologies. Security professionals need a futuristic approach to design a secure roadmap aligned with the evolving technology and advancing security landscape.
Tata Communications Centre for Digital Transformation (CDT) offers “Cybersecurity Training cum Certification Program Associate Level 1.0” for individuals possessing 0-5 years of work experience. The program can help individuals and organizations better understand and manage cybersecurity risks with better-trained professionals. For individual candidates, this program would enhance their employability in the cybersecurity domain.
CDT’s Associate Level 1.0 course focuses on “Strengthening the Fundamentals of Cybersecurity Technology.” It includes secured and converged IT infrastructure (including the cloud), cybersecurity architecture, network scanning technologies and countermeasures and security audit.
Furthermore, the Professional Level 2.0 course focuses on the topic “Develop Competencies in Cyber Threat Assessment and Mitigation.”
Staffed with cyber intelligence experts, Tata Communications helps enterprises stay one step ahead of ever-evolving threats and encounter the security challenges prepared. It offers future-ready security solutions and simplifies the security complexities across the digital infrastructure.