Debadatta Chand, Managing Director and CEO of Bank of Baroda (BoB), stated that banks and the entire financial system require stronger technological investments to counter cyber threats, as well as increased digital literacy among customers to mitigate risks.
Speaking at the Global Fintech Fest, Chand noted that the growing threat of cyber fraud is 'real' and demands heightened attention at both institutional and customer levels.
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He emphasized that combating cyber fraud can be addressed on two levels: eliminating vulnerabilities within banks and reducing risks originating from customers. According to him, closing banking vulnerabilities requires enhanced technological investment, while customer risks are resolved by improving financial and digital literacy.
Chand stated that the system, overall, needs to invest more in relevant tools given the current number of cyber fraud cases. He added that since banking operations are becoming increasingly dependent on technology, educating customers to protect them from incidents is critically important.
He stressed that the customer level can only be improved through proper awareness, which implies significant investment in both financial and digital literacy.
At the bank level, Chand believes that creditors must recognize that cyber threats are no longer a theoretical risk, and they need to increase investments to strengthen defense systems against attacks. He highlighted that this issue is not limited to India but has a global nature.
Chand also noted that the increasing use of technology in the banking sector dictates the need for evolution in cybersecurity, as cyberspace itself is a technology requiring attention.
He reported that BoB already allocates a portion of its operating profit to technological development, including cybersecurity. Despite the importance of investing in banking systems, Chand believes that raising customer awareness remains a key area requiring attention. He concluded that the system must do much more, recognizing vulnerabilities in both banks and customers.