Cyber-banking fraud has seen an upward trend in the last few years. In a survey conducted by Mcaffe in 2019, around a quarter of Indians admitted to being duped by email or text phishing scams.
Further with the current climate leaning towards an increase in the adoption of digital financial services, having enough layers of protection is the need of the hour. To address this, RBI is implementing regulatory measures, which are also being coupled with proactive tech innovations to protect customers.
According to industry reports, UPI has surged ahead of debit and credit cards on transaction volumes (approximately 10.8 trillion transactions in 2019), With that said, debit and credit card transactions are not far behind. Numbers show it accounted for a combined transaction volume of 7 trillion.
Today, India has the 2nd highest volume of debit cards issued globally. With approximately 816 million debit cards and over 56 million credit cards in circulation, curbing card-related fraud has been at the forefront of RBI’s approach.
By analysing the loopholes in current systems in parallel with these solutions, regulators have taken some bold measures to tighten the payment security space.
This evidence lies in RBI’s circular issued on January 15 2020 to banks and card-issuers. The directive underlines the importance of using technology to give consumers greater control over their payment instruments.
To successfully achieve this, banks and card issuers can leverage modern fintech platforms, which will also help them offer their customers a meaningful and secure banking experience.
The new RBI directive on physical, virtual and contactless cards requires banks and card issuers to provide services like, modifying transaction limits and card on/off as per the customers convenience. Moreover, these services have to be available to customers via multiple channels, 24/7.
This only shows that as we move forward in the ‘new normal’ of modern banking, consumers will soon look out for banks that offer value, services along with tested secure measures and convenience.
Opting to partner with platforms that have been built with a mobile-first approach will be key for banks to get up to speed with these expectations.
Along with this, banks need to consider platforms equipped to integrate seamlessly with existing banking systems. Thus, reducing costs and implementation time, while accelerating their go-to-market strategy.
With regulatory bodies in India and outside working proactively to introduce safety measures (Ex: SCA in the European Union), we’re going to see a lot more collaboration between banks and fintechs.
Empowered by the technical infrastructure of fintech platforms, banks can enrich the digital banking journey without compromising on security. And, customers can yield the benefits of both.