Customers' identities being compromised in some cases
The banking industry is still saddled with the problem of security when it comes to Internet Banking according to a top banking official in UAE.
Talking to The Business Weekly, Murray Sims, head of personal banking at RakBank, the Ras Al Khaimah-based banking institution, said that the issue of security was the primary concern which the bank took into consideration before deciding to make a move into offering such service. He also admitted that this was the main point why RakBank seems to quite late as compared to other banks in terms of offering online or internet banking solutions to banking and non-banking customers.
"We recognized that one of the key issues that customers have with internet as a delivery channel is their concerns over security," Sims said. He added that there have been a number of issues where customer identities have been compromised, not just outside this market but in this market as well.
Firewalls in place"What we have been doing is making sure that we have the infrastructure in place to ensure that we have the very best world-class security and that we have all the firewalls in place," Sims continued.
"That's the reason why we've been taking our time than actually just rushing into something without considering all these factors," Sims explained. Having achieved a 52 per cent growth in profits primarily through retail banking, the growth in their customer base and activity have exceeded their expectations and that such "growth has created system pressures and system stresses."
He also mentioned that up to 30 per cent of their customer base has also been demanding for such an internet or online banking service.
In line with such efforts to launch an online or internet banking facility, RakBank has entered into several contracts such as with Infosys as the provider of the internet or online banking software, as well as an external independent security assessor who has come in and used a comprehensive network of checks to ensure that all the necessary security features are in place. In addition, RakBank has entered into a contract with Al Futtaim Technologies for the provision of a replacement contact centre and Interactive Voice Response (IVR) software.
Sims further revealed that RakBank is also in the process of launching a debit card with chip. He said that by the beginning of next year, such a move will provide the platform for migrating the chip infrastructure and technology to their existing credit card customers, which will then provide them mostly with additional security.
With regard to their ATM delivery channel, Sims mentioned that they have also placed anti-scheming devices for the further protection of their customers. This he said probably makes them the leading bank in the country in terms of providing anti-fraud devices onto ATM machines.
He also said RakBank is investing heavily on the technology that would enable business customers with the ability to pay in online through their ATM without having to take their card.
Sims revealed that the bank has made a considerable amount of investment, approximately in excess of Dh10 million, to upgrade their information technology systems.
By Albert Alba
© The Business Weekly 2007
