Page 35 - Banking Finance May 2020

ARTICLE

IT IN BANKS

& FRAUD

RISK

MANAGEMENT

Abstract Introduction
Banks are the oldest, biggest and fastest growing financial
In today's scenario, technological infrastructure has
become an inevitable part of the reforms process in the sector in India. Banks meet the needs of farmers,
banking system. With the advent of technology, many businessman, entrepreneurs, Government and other
segments of the society. In the last few decades, the banking
security concerns have also crept in. These loopholes in
security lead to the occurrence of cyber crimes which not sector has witnessed numerous important transformations.
One such transformation is the use of technology in banking
only gives financial setback to the bank or its customers
but also pose a threat to the reputation of banking system sector .Present day, the Indian banking system is regarded
in India. Every bank should have standards to deal with as a well-developed and well-regulated banking system
throughout the world.
the risk of frauds occurring on account of technological
advancements. This article gives a fair understanding of
The use of technology in banking sector has led to
the role of technology in banks, various techniques of
committing cyber frauds and suggestions for banks to Productivity enhancement, innovative products, speedy
prevent or manage the risk of frauds due to technology. transaction and transfer of funds, real time information
system and efficient risk management.
About the author Presently, Indian banking industry is going through IT

revolution. Information Technology is basically used in two
Vineet Bhardwaj different ways in banking, firstly in Communication and
CAIIB, Senior Manager (Faculty) Connectivity and secondly in Business Process Re-
Union Bank of India
Staff College, Bengaluru. engineering. Information technology enables sophisticated
product development, better market infrastructure,

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