India beats US in banking tech

India's state-owned and private sector banks have leapfrogged their US counterparts when it comes to adoption of sophisticated technology systems, according to research firm Celent, reports The Economic Times.

“Most banks in the US and Western Europe are still using technology of the 70s, while banks in India had a clean slate and they could afford to be more flexible,” said Bart Narter, senior vice-president, banking group, Celent.

Large Indian banks such as SBI and Indian Bank, apart from private sector rivals ICICI Bank and HDFC Bank, are using a single core banking software, which automates and integrates different banking processes of lending and treasury on a single platform. However, many western banks have different systems for specific functions of lending and treasury.

Mobile phone banking technology is giving the un-banked, the under-banked and the poor in general, easier access to credit, thus contributing to poverty reduction and improved economic growth, states the Philippine Star.

Based on data accumulated by global institutions, mobile money deployments are increasingly becoming popular for the un-banked and a potential instrument for poverty reduction.

It was revealed in a recent international conference in Barcelona last month that more than a billion people worldwide lack bank accounts but are owners of mobile phones.

To support its online banking service and ensure protection and peace of mind for its customers, HDFC Bank has implemented layered components of the RSA Identity Protection and Verification Suite including the deployment of RSA Adaptive Authentication, RSA FraudAction and participation in the RSA eFraudNetwork, says Express Computers.

“Online fraud is a significant threat to organisations and customers all over the world. Phishing, pharming and Trojan attacks are increasing in India as online banking becomes more popular,” said Anil Jaggia, CIO, HDFC Bank.

“Our customers are aware of these threats, so we needed to ensure that we could offer them a secure platform that would protect their personal credentials and financial assets. Customer satisfaction is our top priority and RSA provided us with the necessary balance of online security and user convenience,” he added.