Page 42 - Banking Finance August 2025

ARTICLE

Securing the Future:

Why Physical

Security Still Matters

in India's Banking

Anirban Mukhuti
Landscape Product Management - Asia,
Head - Marketing &
Gunnebo

This evolution isn't just about technology, it's about building trust. A secure banking environment
enhances customer confidence, reassures regulators, and strengthens institutional credibility. As
we move deeper into the digital era, physical security must be seen not as an outdated practice,
but as a strategic pillar supporting the foundation of modern banking.

I ndia's banking sector is undergoing a remarkable digital Today, three key risks stand out. First, outdated
infrastructure that may not withstand sophisticated burglary
transformation, driven by fintech innovations, mobile-
first customers, and regulatory reforms. But amid the
surge in digital banking solutions, one critical component attempts. Second, undefined or poorly managed access
controls, which open the door to internal misuse. Third, a
remains largely underemphasized: physical security. lack of audit-ready systems that can track, monitor, and
respond to real-time threats effectively.
As India rises to become the fourth-largest economy in the
world, the financial ecosystem is expanding rapidly into semi- The solution lies in treating physical security as part of a
urban and rural regions. With increasing financial inclusion bank's overall digital strategy. Modern vaults and safes,
comes the need for secure storage of physical assets, cash, when equipped with intelligent locking systems, enable
documents, gold, and other valuables. These assets continue features such as multi-factor authentication, remote access,
to be integral to branch banking, especially for cooperative programmable time delays, and silent alarms. These systems
banks and regional financial institutions. not only offer greater control but also improve
accountability by maintaining detailed audit logs of every
Despite the digital shift, many banks continue to operate access event.
with outdated strong rooms and vault infrastructure. This
creates serious vulnerabilities in a landscape where both Additionally, certifications and compliance benchmarks play
internal and external threats are evolving. Incidents of a vital role. Standards such as BIS Class AAA under IS 17541
break-ins, insider breaches, and unauthorized access remain provide an assurance of the vault's resistance to
real challenges. In such an environment, physical security sophisticated attacks. Such benchmarks help banks assess
can no longer be treated as a legacy concern it needs to whether their current infrastructure meets the demands of
evolve in step with modern banking. today's security environment.

38 | 2025 | AUGUST | BANKING FINANCE