The digital payments are continuously growing in this era where financial service providers need to cooperate with the fintech developers to build a resilient front-ends to safeguard and understand the consumer interest by keeping the view of rising cybercrimes, a top finance ministry official said on September 7th 2020.
Addressing at a Ficci event about the FinTech, K Rajaraman, Additional Secretary in the Union Finance Ministry, told an area that needs to be emphasized is cybersecurity and fraud prevention. These days it is been seen that cybercrimes have taken a toll as there is an explosion in the usage of digital platforms. Majority of the activities of fintech have been attentive on how to give resilient front-ends for the financial services providers. The Financial service providers should not feel hesitated to collaborate with fintech (financial technology) trendsetters for beefing up cybersecurity and fraud prevention, he told.
Stating an example of the latest cyberattack on New Zealand’s stock market, he told that cybersecurity must get serious and continuous focus from all the stakeholders. The Previous month, New Zealand’s Stock Exchange Market (NZX) grieved an apparent external cyberattack which forced the government to stimulate the country’s National Security System. The challenge should be taken care of by not just one set of shareholders, but a wide variety of stakeholders, and he believes that the fintech innovators have a vital and critical role in this situation.
Rajaraman also mentioned that the pending KYC (Know Your Customer) procedure is being fixed with the Reserve Bank of India and the Department of Revenue. The applications of fintech are not just only about the digital payments but also caters a lot of other enterprises such as wealth technology, for example, he mentioned. He said as an example if the investments made by Indians in the savings and financial markets have been gradually increasing, but a lot more effort has to be done in confirming that the ordinary people are able to invest without any extra effort in the capital markets. This is a huge challenge that lies before them.
Talking on the event, the State Bank of India (SBI) chairman Rajnish Kumar told numerous countries are working and are in progressive stages of moving to the open banking system, and our country has also taken many steps in that particular direction. All the banks are looking for a partnership with fintech firms in numerous zones. While addressing challenges, Kumar said that up to certain scale resolutions are great but when volume increases there are some problems.
