Exploring Cybersecurity Challenges in Internet Banking

Table of Contents

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TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc40121009 \h 21.0 Introduction PAGEREF _Toc40121010 \h 42.0 Review of the Literature PAGEREF _Toc40121011 \h 53.0 Theoretical Framework PAGEREF _Toc40121012 \h 74.0 Research Model and Hypothesis PAGEREF _Toc40121013 \h 85.0 Methodology PAGEREF _Toc40121014 \h 86.0 Results PAGEREF _Toc40121015 \h 96.1 Emerging Cybersecurity Challenges in Internet Banking PAGEREF _Toc40121016 \h 96.1.1 Data Management and Application of Insights from Analytics PAGEREF _Toc40121017 \h 96.1.2 Balancing Global and Local Requirements PAGEREF _Toc40121018 \h 106.1.3 Defining Current Risks PAGEREF _Toc40121019 \h 116.1.4 Responding and Embracing Change PAGEREF _Toc40121020 \h 126.2 Proposed 4-Point Data Governance Framework PAGEREF _Toc40121021 \h 127.0 Discussion PAGEREF _Toc40121022 \h 158.0 Conclusion PAGEREF _Toc40121023 \h 17References PAGEREF _Toc40121024 \h 19

Mitigating the Emerging Cybersecurity Challenges of Internet Banking: A Proposed 4-Point Data Governance Framework

IntroductionInternet banking is a new trend in financial institutions as a measure to enhance the customer experience. Common synonymous terms include E-banking, online banking, and electronic banking. The recent decade has been characterized by banking institutions migrating most of their services to technology-based platforms that allow customers to access their accounts and undertake transactions online at any time (Almagro et al., 2018). Internet banking came with a significant number of challenges, which revolve around the security concerns among users. Cyber-attacks have escalated with an increase in the number of internet banking users (Boer & Vazquez, 2017). The everchanging strategies and the complexity of cybersecurity management have proved to be a critical concern for financial institutions. The vulnerability of users due to their inability to protect their access to internet banking platforms has equally exacerbated the process of guaranteeing effective data management and protection. Kazmi et al. (2017) ascertained that the speed at which internet banking is being adopted calls for a multidimensional approach to potential challenges to guarantee effective cybersecurity. However, the ever-changing nature of emerging challenges also impedes the successful implementation of data governance measures. This current paper focuses on the nature of emerging cybersecurity challenges in internet banking and recommends a four-point (4-point) data governance framework to address the emerging challenges.

Review of the LiteratureScholarly evidence on the role of data governance amid increased cybersecurity concerns in the financial sector has ascertained the need for vigilance when handling and storing customer data. According to Abreu et al. (2013), information governance has become a key component in the banking sector. The scholars argued that from the evidence collected from thirteen banks, bank executive and data stewards have a central responsibility of implementing and sustaining diversified security measures by establishing information governance frameworks.

Eugen and Petrut (2018) explored the concept of cybersecurity governance amid the new era of increased data flow and information access. The duo argued that a unified and well-coordinated approach is needed to address the diversified cyber threats. Based on their paper, it is evident that data breach adversely affects users and jeopardizes their privacy and safety. Eugen and Petrut (2018) conclude that by adopting best practices, organizations handling private data could improve user experiences. However, the researchers also agree about the existing complexities in data management, which stems from the ever-changing cybersecurity threats across the globe.

Another study by Kazmi et al. (2017) also showed how cybersecurity concerns in internet banking affect successful customer experience and banking perspectives across major financial institutions. The research that was restricted to emerging countries postulated that both e-banking and e-commerce have been adversely affected amid increased use of online technology tools. The researcher established a novel model that could be implemented to reduce cybersecurity threats in this area. The data from emerging countries showed how comprehensive frameworks guarantee effective data governance intending to reduce the vulnerability of users and organizations. In this proposed novel model, the scholars recognized the role of IT literacy levels of the users and the nature of the equipment used.

Organizations specializing in corporate research including data analytics and management amid increased technology advancement have also presented essential evidence regarding the subject of cybersecurity and internet banking. The report by Deloitte (2016) on mitigation of cybersecurity issues affecting Indian banks showed that financial institutions should endeavor to guarantee long-term security, vigilance, and resilience of their banking systems. A report by PwC (Price Water Coopers) (2019) on measures to undertake too secure banking innovation pointed out the advantage of adhering to modern digital intelligence to shield users from cyber-attackers. The report acknowledged that online data threats have escalated in recent years.

Reddy and Bhargavi (2018) reviewed emerging challenges and security concerns relating to cybersecurity in banks. The researchers found that there is a positive trend in cybercrimes in the banking sector and a subsequent complexity in achieving optimum data governance. The paper recommended the use of collective protection interventions to strike a dynamic change in securing users and the financial sector's success. The duo predicted that banks should expect a further exacerbation of crimes targeting online systems with an increase in innovative tools and systems. However, by igniting a dialogue centered on collective responsibility, Reddy and Bhargavi (2018) are convinced that financial institutions could rise above the cybercrime tide.

According to the World Bank's FinSAC 2019 regulatory digest, there has been an increase in the regulatory framework to ensure that financial institutions remain updated and compliant with the required cybersecurity standards and data management requirements. The recent digest by FinSAC (2019) outlined the additional 35 regulatory as well as supervisory interventions developed for banks to ensure they establish a safe data environment to reduce cybersecurity threats. Based on the digest, regulatory frameworks are now centered around emerging issues and concerns in the sector. Yet the degree of implementation and applicability of the instituted frameworks remain on the balance for a significant number of firms.

Carlos and Prenio (2017) outlined the measures that could improve the effectiveness of cybersecurity frameworks in banks. The report under the second FSI Insights on policies highlighted that supervisory tools and methods could improve cybersecurity. Moreover, the authors also showed that adhering to provided regulatory and compliance frameworks are equally fundamental. The literature ascertains how cybersecurity could be improved but the question of changing threats remains a problem beyond the scope of regulation and policy interventions.

Theoretical FrameworkThis paper is based on agency theory as the underpinning conceptual framework. The theory explains the relationship between the agent and the principal, which is essential in understanding the key dimensions in data governance in the banking sector. The bank and its customers have a principal-agent relationship with underpinning obligations in data management and security. Through agency theory, scholars have been able to outline the responsibility of banks such as data governance to meet the expectation of their customers (Abreu et al., 2013).

4.0 Research Model and HypothesisThe process of enhancing data security stems from data management interventions and the nature of analytics, which is used to inform how global and local requirements and resources are balanced. The system also depends on regular risk control and assessment (FinSAC, 2019). Additionally, organizations are required to respond and embrace changes in data governance and cybersecurity concerns in their policy and system advancement programs (Nish & Naumaan, 2019). In this case, critical challenges in cybersecurity originate from an ineffective approach to addressing these concerns. Therefore, this research is founded on the hypothesis that;

Emerging cybersecurity challenges in internet banking originate from data management, application of analytics, balancing of requirements and resources, change management, and risk control.

An effective data governance framework should address the emerging cybersecurity challenges in internet banking by incorporating key elements such as data management, application of analytics, balancing of requirements and resources, change management, and risk control.

5.0 MethodologyThis research is a qualitative analysis of the key issues associated with cybersecurity and data governance in internet banking. The researcher gathered data from secondary sources by reviewing publications, reports, and policies. This approach was selected because it saves time while guaranteeing access to a wide range of diverse evidence. This method has previously been used in other practice-based assessments to study cybersecurity concerns and data governance practices (Abreu et al., 2013; Eugen & Petrut, 2018; Reddy & Bhargavi, 2018).

6.0 ResultsAfter evaluating the secondary sources for data collection, the researcher found out that internet banking is currently characterized by several emerging cybersecurity challenges. The reasons behind the c...