Page 40 - Banking Finance September 2025

ARTICLE

"Digital Safety and

Innovation" in the

Modern Digital Era

Sailesh Kumar
Chief Manager (Faculty)
Union Bank Knowledge Centre
Bengaluru, Union Bank of India

Rapid progress has exposed societies to complex digital threats. Cyberattacks have surged,
targeting individuals, corporations, and even nation-states. Sensitive data is frequently leaked or
sold on the dark web. AI-powered deepfakes, online fraud, misinformation, and cyberbullying
threaten societal cohesion and democracy.

Introduction Artificial intelligence (AI), the Internet of Things (IoT),
blockchain, cloud computing, and big data have opened
In the ever-evolving digital era, where technology disrupts
doors to unprecedented opportunities. From healthcare to
industries and transforms lives at an unprecedented pace,
finance, education to entertainment, digital innovation has
the tension between digital safety and innovation has be-
enhanced efficiency, improved services, and driven conve-
come a defining dilemma. On one hand, digital innovation
nience.
is essential for economic growth, societal progress, and
individual empowerment. On the other, the risks associated Startups, large corporations, and governments race to le-
with digital platforms - data breaches, cybercrime, misin- verage these technologies to create new products, services,
formation, surveillance, and ethical concerns - have grown
and experiences. Digital-first business models, like fintech
alarmingly.
apps, e-commerce, and telehealth, have not only trans-
formed industries but also created entirely new ones.
This duality presents a critical challenge: how do we foster
a thriving digital economy and society without compromis- The Growing Web of Digital Risks
ing individual rights, security, and trust? This article ex-
However, this rapid progress has exposed societies to com-
plores the importance of balancing digital safety with inno-
plex digital threats. Cyberattacks have surged, targeting
vation, the challenges involved, and how governments,
businesses, and individuals can create a sustainable and individuals, corporations, and even nation-states. Sensitive
secure digital future. data is frequently leaked or sold on the dark web. AI-pow-
ered deepfakes, online fraud, misinformation, and
The Rise of the Digital Era cyberbullying threaten societal cohesion and democracy.
The Unstoppable Wave of Innovation Moreover, innovation itself is increasingly weaponized.

Digital technologies have reshaped every aspect of life. Technologies like AI and facial recognition can invade pri-

36 | 2025 | SEPTEMBER | BANKING FINANCE