Information Technology is important in promoting faster and safer inter-connectivities among banks. The inherent challenges of IT along with its efficient role in banking services are also becoming vivid. All of us are well-informed of the government's vision of achieving 'Digital Bangladesh' by 2021. Accordingly, the banks are working actively for attaining comprehensive digitisation and optimised financial processes.
Introduction of automated clearing house, online CIB report, electronic fund transfer, automated payments system, online banking, mobile banking, e-commerce, online payments gateway etc. are a few of the recent initiatives taken by the banking sector. The preliminary outcomes of this digitisation drive are indeed encouraging.
With the introduction of mobile phone-based banking, fully automated inter-bank clearing and settlement of both paper-based and electronic fund transfer developments in IT infrastructure, nationwide connectivity of on-line banking has increased.
Although application of IT in banks makes life easy, let it not be forgotten that IT-related risks are there as well. The Sonali Bank has incurred a loss of Tk 20 million last year after hackers breached its vulnerable "password and risk management system". Recently, another scandal hits the state-owned Sonali Bank. The bank has lost $250,000 (Tk 2 crore) to cyber-crooks, who allegedly hacked the bank's security system. The crime was committed in September last year while Sonali Bank's corporate branch at Shilpa Bhaban was transferring the amount to the United Kingdom through wires on behalf of its client in Bangladesh. But the money was stolen by London-based hackers, who reportedly transferred it to Turkey. The bank luckily escaped another hacking attempt, as there was no cash in the account from which the hackers tried to steal money.
This means there has been huge flaws in the management of passwords of the bank's accounts and there has been no risk management.
During the attack unleashed by the Hifazat-e Islam, several people stormed into the bank, but there was no video footage of it. All-round security for not only Sonali Bank but also all the banks is necessary now, including strengthening their on-line system to save the banks from such a threat. To protect the banks from any such future risk, overhauling of the bank's security, including their on-line security system is a must.
There is a need for addressing similar challenges by gaining a detailed understanding of the potential IT-related risks (for example, viruses, hacking, IT intrusion, and natural disasters). Sufficient safeguard systems must be put in place to take necessary measures against security breaches in relation to risks. Formulating policies and creating a carefully planned implementation strategy for integrating security measures into all aspects of our banking network are extremely important in this era of digitalisation, e-Commerce, e-Governance and on-line transactions.
Bangladesh's banking sector is now standing on a strong base and it has witnessed a massive expansion. What it needs now is to ensure quality services for people. Deposit collection is not only the duty of banks. The prime responsibility of banks is to use the idle money properly. In this regard, the banks should use their own innovative business ideas. The banks must be careful so that their on-line services could not be hampered in the wake of any technical glitches.
The internal management system of the banks has to be strengthened to restore people's trust because the hacking incident of Sonali Bank was primarily the result of weaknesses of its internal management system.
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