SBP seeks feedback on latest anti-cyber crime technology

KARACHI: The State Bank of Pakistan (SBP) has asked banks to propose if they are willing to deploy the revolutionary anti-cyber crime ‘blockchain technology’ to protect financial transactions and bolster online payment system, its executive said on Wednesday.

“We may adopt the system of ‘blockchain’ to facilitate trades,” Inayat Hussain, executive director Banking Supervision Group at SBP said. “Banks may approach the SBP and tell if they want to use the new technology.”

Hussain, speaking at a conference, said the central bank is currently studying blockchain technology solution model, being adopted by central and commercial banks of various countries to keep electronic financial transactions protected from cyber crimes.

He said central banks of Canada and India have adopted the latest technology and are experimenting new solutions.  Total Communications, in collaboration with Pakistan Software Houses Association (Pasha), organised the moot. The SBP’s executive said the central bank would move chief information officers to timely detect and address internet malpractices and threats.  

The SBP last updated its payment system rules in October 2016. “Since then we have provided permission to three entities to play their role as PSO/PSPs (payment system operators and service providers),” he added. “Initially, banks were slow towards adopting new technology, but now they are doing it as per the international practices.”

An official of the ministry of information technology and telecom said the government would provide mobile internet services to every corner of the country by December 2018. “There will be left not a single place without mobile broadband by end of 2018.”

The official said mobile broadband connectivity will play a critical role in boosting e-banking and e-commerce activities in the country. Jehan Ara, president of Pasha said the slow adoption of mobile banking and reduction in number of active mobile bank accountholders show that there is either something wrong with the product, like m-wallet or banks are not working with the ‘right people’ as their agents.

Habib Hanna, managing director Middle East and Africa of Diebold Nixdorf said this is an era of consumerism and banks need to think as how they can remain relevant. “Millennial may be tech savvy, but many banking customers may not familiarise with the new technologies,” Hanna said. “Banks should design products for both type of customers.” 

Aftab Manzoor, president and chief executive officer of Soneri Bank Limited urged bankers to understand the need of customer and use technology accordingly. Mudassir Khan, an official of the National Bank of Pakistan said ninety percent of the digital transactions in the country are related to clearing of utility bills and domestic remittances transfer.