Page 54 - Banking Finance October 2025

ARTICLE

COBIT Framework Transparent, reliable services backed by robust frame-
works enhance public confidence.
3. Regulatory Compliance
Banking is one of the most heavily regulated industries.
Frameworks like COBIT and NIST simplify compliance by
aligning internal controls with external regulations. They
help banks demonstrate due diligence during audits and
avoid penalties.
4. Operational Efficiency
ITIL plays a crucial role in ensuring banking services are
always available, disruptions are minimized, and inci-
dents are resolved swiftly. This operational excellence
translates into smoother customer experiences and
higher satisfaction.
5. Risk Management and Governance
Banks cannot eliminate risks entirely, but frameworks
COBIT is an IT governance and management framework help them manage and optimize risks in line with their
that bridges the gap between technical IT teams and busi- appetite. COBIT provides governance mechanisms that
ness leadership. Its relevance to banking includes: ensure IT decisions are transparent, accountable, and
Governance: Establishes accountability and oversight aligned with business strategies.
over IT-related decisions. 6. Supporting Innovation
Compliance: Ensures adherence to regulatory obliga- Frameworks do not hinder innovation; rather, they pro-
tions. vide a safe foundation for adopting new technologies.
For instance, banks exploring AI-driven credit scoring or
Risk Optimization: Helps banks evaluate, prioritize, and
blockchain-based settlements can use frameworks to
mitigate IT and security risks.
ensure security and compliance remain intact.
Alignment with Business Objectives: Ensures technol-
ogy initiatives directly support banking strategies. Complementary Use of Frameworks

While each framework has unique strengths, banks gain
COBIT is especially valuable in banks where strategic deci-
maximum value when they are applied in tandem:
sion-making must integrate IT, risk, and business impera-
tives. NIST + COBIT: While NIST focuses on security controls,
COBIT ensures these are aligned with business gover-
Importance of These Frameworks in nance and compliance goals.
ITIL + NIST: ITIL ensures service stability, while NIST
Banking
focuses on securing those services.
1. Strengthening Cybersecurity Posture
COBIT + ITIL: COBIT drives governance at the top level,
Frameworks like NIST help banks implement layered se- while ITIL operationalizes efficiency in service manage-
curity controls, identify vulnerabilities, and maintain
ment.
continuous monitoring. They provide structured defense
against cyberattacks, ensuring that both prevention and Together, they create a multi-layered, comprehensive
recovery measures are in place. approach that covers governance, service delivery, and

2. Enhancing Customer Trust security.
Customer trust is the lifeblood of banking. When banks
adopt recognized frameworks, they send a strong mes- Real-World Relevance to Indian Banking
sage that security and governance are taken seriously. In India, the Reserve Bank of India (RBI) has emphasized

48 | 2025 | OCTOBER | BANKING FINANCE