INDIAN BANKING AND THE CHANGING DYNAMICS OF USER SECURITY
Way back in 1996, ICICI bank introduced to its customers the concept of New Age banking called Internet/Online Banking and became the 1stbank to bring this technological revolution to the country but the Indian consumers took another three years to believe in the system and start using the system and it was then in 1999 when most other competing banking services providers launched their own platforms.
Comparing with what happened in 1996 with today’s scenario things have changed at lot. Banking customers have evolved over the years and with coming of credit cards, debit and payment wallets other than just the basic online banking of1996 is empowering financial peace. According to recent RBI data estimates there are about 20 millions credit cards and 441 millions debit cards users in India which are empowering customers to do transactions online
Now it is a just on a click of a button you can transfer funds or make payment of utility bills from your bank account just by sitting in the comfort of your home
In fact this technological evolution in the near future would also able to empower banks to take banking to the unbankable population of the country in far flung areas and also would enable customers to ease the process of managing money to a larger extent. Now online banking is not merely banking on web but today Indian banking customers are using platforms like mobile apps to interact and transact with their banks.
With all these technological advancements banking is also became prone of challenges of information security. The threats that this challenges pose not only happening on the bank front also from the telecom operator front to who are empowering banking in the space of mobile based banking and also because lot of transaction data also flow through their network. Users faced attacks in various forms like phishing, authentication level frauds etc.
All these challenges also prompted the banking regulator to come with the first Internet Banking regulations back in 2001 defining the rules and parameters from the technology angle for the banking industry to adhere. Following this Reserve bank to India also released OPERATIVE GUIDELINES FOR MOBILE BANKING and with recent focus on two factor authentication and single factor authentication for transaction below Rs.2000 is the next level of steps which the regulator is taking towards user security and making our banks more secure
Writer : Tarun Wig, Security Consultant, Authshield Lab
Originally published at authshieldlabs.kinja.com.