State Bank of India (SBI) Chairman CS Setty has warned of growing cybersecurity challenges and the need for improved digital literacy in the banking sector. While investments in cybersecurity are on the rise, the availability of professional support for these activities remains limited, posing a significant hurdle for banks as they roll out digital systems.
Speaking at FIBAC 2024, a banking summit organized by the Indian Banks’ Association and FICCI, Setty emphasized the importance of addressing these challenges to ensure the successful transition to digital technologies and protect systems from cyber threats.
SBI has been able to create resilience in its systems while maintaining a positive customer experience, despite the complexities of integrating legacy systems with newer technologies. The bank has collaborated with fintech players and software solution providers to reimagine customer journeys and streamline processes.
Setty also discussed the need for banks to prioritize spending on technology that delivers tangible benefits, such as meeting regulatory requirements, acquiring new business, and enhancing customer experience. He cautioned against excessive spending on technology upgrades that do not contribute to overall transformation.
Investments in technology should focus on creating end-to-end experiences and processes that lead to operational efficiency. Additionally, banks should assess whether their digital interfaces are capable of handling large transaction volumes and consider redeploying staff to areas where they can contribute to business growth.
By addressing these challenges and making strategic investments in technology, banks can effectively navigate the digital landscape and ensure the security and efficiency of their operations.
