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Ensuring security for digital banks
Ngoc Thuy 19:37, 2017/12/09
The fourth industrial revolution has transformed distribution channels, services and products offered by traditional banks, but also posing potential risks for information security.
At the forum Retail Bank Vietnam 2017 with theme “The future of retail bank and payment service in era of industrial revolution 4.0”, expert said, 3 main characteristics of the industrial revolution 4.0 is cloud computing, big data and block chain. This has led to a strong growth of the model of digital banks: Creating new financial products & services such as M-POS, internet banking, mobile banking, QR code or E-wallet, which have brought convenience for customers in using banking services and saving expenses. 
 
Digital banks and e-transaction are the growing trend at present.
Digital banks and e-transaction are the growing trend at present.
According to the report on Banking services: Customer’s behavior and trends in Vietnam” conducted by International Data Group (IDG) in 2017, solutions for e-banking are more and more common, which is highly appreciated thanks to its convenience and time saving, as 81% customers using e-banking compared to 21% in 2015. 

Digital banks and e-transaction are the growing trend at present, but at the same time, it also poses numerous challenges, such as serious cyber attacks against financial institutes and banks, risks of information expose, customers’ data, fraud in transaction. Results from survey showed that 57% interviewees are concern over the potential cyber attack when making online transactions. 

In recent two weeks, users of e-wallet MoMo in Vietnam have been reporting of losing money in accounts, which has not been solved. Meanwhile, according to a international bank, they have received multiple complaints with regard to this e-wallet on the occasion of Black Friday. Moreover, there are also cases of customers losing money in credit card, for which the investigations showed these transactions were done abroad, while the credit card’s owner was a different person in Thailand. 

With the rapid advancement of technologies and the trend of using cloud computing, risks in information security have also increased accordingly, leading to more concern over potential cyber attacks. According to Microsoft, cyber attacks and frauds are the most concerning issues of banks. 

Against these challenges, not only banks, but also credit institutions have applied Information & Technology (IT), upgrading firewall, IDS/IPS; anti-virus software among others. Representative of banks said, expenditures for these measures are very high, which may go up to millions of USD, however, technologies can change very fast. 

According to the General Secretary of Banks Association, the technological infrastructure and equipment for transactions have not matched the rapid growth of economy and requirements for cashless payment methods. On the other hand, technological investment for transaction in banks are very high, which requires a long term investment. On the customer’s side, it is necessary to raise awareness in protecting private information when suing social networks. 

With 90 percent of current transactions conducted in cash and only 30 percent of citizens having a bank account, the government faces an uphill task to achieve its goals. Nonetheless, recent regulatory reforms and emergence of private players in the last few years have been encouraging towards creating a sustainable digital payments market. In this article, we will look at the current state of the cash based economy, rise of Fintech solutions, government cashless policies, rising internet penetration, and what the government needs to do to ensure the transition.
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