Bank Digitalization and Risk Management in the Digital Era: A Case Study and Survey

Author(s): Roopali Patil and Rohit Patil

Abstract:

The digital transformation of banking has reshaped the financial landscape, offering increased efficiency, accessibility, and security. Digital banking services, including online banking, mobile payments, artificial intelligence-driven customer support, and block chain-based transactions, have enhanced financial inclusion and operational efficiency. However, these advancements have introduced new risks that require robust risk management strategies. Cyber security threats, fraud, and regulatory compliance challenges pose significant hurdles for financial institutions. This study explores the current state of bank digitalization, highlighting key advancements, benefits, and challenges. The research further examines risk management practices in digital banking, focusing on cyber security, fraud prevention, and regulatory compliance. To address these challenges, banks have adopted risk mitigation strategies such as multi-factor authentication, AI-based fraud detection, secure APIs, and enhanced regulatory compliance measures. The study includes an analysis of Indian banks such as SBI, HDFC, ICICI, and Axis Bank, showcasing their digital transformation initiatives and risk management practices. The research utilizes primary data from customer surveys and secondary data from reports by the Reserve Bank of India (RBI) and Indian Banking Association (IBA). The findings indicate a growing reliance on digital banking, with security and regulatory compliance being top priorities for banks. This paper concludes that financial institutions must continuously evolve their risk management frameworks to protect customer data and financial assets while promoting secure and efficient digital transactions.

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Pages: 133-137     |    2 View     |    0 Download