Archive for October 21st, 2005

Information Security and Banks

October 21, 2005

There are three key points I will focus on

Technology will be pervasive in Banking in the next 3 to 5 years in India; it could be PC’s, LAN / WAN, ATM, Core Banking or RTGS, but one or other will always be under implementation. The challenges are special in India, where simultaneously both the sunset technology (branch automation) and sunrise technology (core banking and mobile banking) will peacefully co-exist. What is needed is a way to constantly evaluate technology and use it to the Bank’s advantage

• Banking is all about trust; trust is not built in a day and yet trust cannot be lost even for a second; technology is an enabler; people will appreciate “nice” features like “any time banking”, “any where banking” or tele-banking, but people will not compromise on trust for convenience. This point should not be lost sight of in our eagerness to deploy technology

• Last, but not the least, planning is important but execution is the key. In Indian public sector banks a lot of effort is taken and care is exercised during asset acquisition, but little care is taken to utilize of the assets. Technology acquisition alone will NOT help; technology utilization is a must. Training, skill up-gradation, payment of software maintenance fee etc., must be “factored in”; else, IT projects will remain “IT budget spending” projects and NOT business transformation projects.

(Keynote address given at McAfee Seminar on “Security concerns of the BFSI segment” at Bangalore on 21st October 2005)