The truth about digital banking, a practical trend but with challenges in cybersecurity

Digital banking. (photo: blog.cobiscorp)

Digital banking is the global trend in the financial sector. Every day consumers are betting on participating in new technological models and it is expected that 2022 will be a competitive year among banks, even fighting for which can grant more loans in a flexible and flexible way. attracting new customers.

Consumers feel the need to learn to interact with the bank through digital channels, and financial institutions have further fostered the growth of these spaces to meet consumer expectations.

In fact, cybercriminals are also in this digital business by making users victims of phishing, vishing or smishing some forms of theft that are generated, in most cases, due to lack of awareness and knowledge of the subject.

Digital banking.  (photo: Fisa Group)
Digital banking. (photo: Fisa Group)

What is digital banking and what is the difference with the traditional bank

All operations carried out through digital banking are carried out instantaneously and provide a high level of financial management, process security and flexibility to users. All you need is to connect to the internet through a device like smartphone, tablet or one computer.

“Digital banking consists of carrying out operations through digital channels by using the internet. The most used means are the applications and the official website where different services are offered such as opening savings accounts, requesting a loan, requesting a card, among others ”, affirmed for Infobae Erick Alencar Ríos, Deputy Manager of Alternative Channels at Banco Pichincha in Peru.

This modality is completely different from traditional bench. Here, customers must be assisted by a worker from the financial institution (either in person or by phone) to resolve their concerns always through a third party and with the need to move to the physical headquarters.

While, in the digital banking, It is practically a self-service because all you need is the internet, to be where you want and do the paperwork through the website or application of the entity on its own account and without depending on a worker.

Digital banking.  (photo: TyN Magazine)
Digital banking. (photo: TyN Magazine)

Onboarding, the key in the digital banking process

Currently, banks are creating special teams to design strategies to attract more customers to the bank, These processes are known in companies as digital onboarding.

For example, if the user wants to open a savings account or acquire a good interest rate, the first thing he does is go to the banks’ website to compare the different options and choose the one that suits him best. At the end, The bank was able to identify the client in a remote manner and offered the best alternatives using the data.

Bank customers now use digital banking to secure their payments.  (photo: Hispanidad)
Bank customers now use digital banking to secure their payments. (photo: Hispanidad)

What is a Fintech and what is it used for

The meaning of fintech is linked to set of companies that are transforming the use of information technologies. Fintech, fintec or financial technology is the finance industry related to ICT to deliver new online services.

Its objective is provide new opportunities for small, medium and large companies create practical solutions through technological innovation, in operational, administrative, economic activities.

Fintech in banks.  (photo: BBVA)
Fintech in banks. (photo: BBVA)

For example, in Peru there are two technological platforms associated with digital banking.

The first is Yape. With this fintech you can make a free transfer 24 hours a day with just a mobile number or a QR code. It was born in 2017 and unlike similar platforms, does not require the use of tokens or any other type of verification of this type, in order to make a transfer from BCP to BCP (Banco de Crédito del Perú).

And the second is PLIN, a feature launched in partnership with Interbank, BBVA and Scotiabank, that allows your customers to send and receive money using only their mobile phone number, through the applications of the aforementioned institutions.

The difference between both fintech is, through PLIN, you can transfer more daily amount than can be done through Yape. With the first, transactions range from S /. 1 as a minimum amount up to a maximum of S /. 500 soles per transfer and S /. 1500 as a daily movement limit. While Yape only allows a maximum shipping amount of S /. 500.

Nowadays, many companies have adapted these modalities to make payments quickly. The clearest example is the applications of taxis or private cars such as Uber, InDriver or Beat, also in Peru, where you can pay the driver using Yape or Plin.

Yape and Plin applications.  (photo: Neuromatics)
Yape and Plin applications. (photo: Neuromatics)

In Mexico There are also many organizations that provide financial solutions to users or other companies in different markets.

One of the most popular is NVIO. The platform allows users to make and receive 100% digital payments 7 days a week, all remote form via mobile phone, email and QR code without commission, as well as interbank merchandise transfers (SPEI).

Nvio.  (photo:
Nvio. (photo:

Cybersecurity in digital banking, a vital issue for user trust

The impact of mismanaged cybersecurity negatively affects banking operations and can vary from the simple theft of information to obtaining customer data without their authorization as well as receiving rewards for their disclosure.

The main scams that the user should be aware of are:

– Phishing: data theft through e-mail hoaxes.

– Vishing: scam in which, through a call, they impersonate a company, organization or person they trust to persuade.

“Actually, Cybersecurity is something that end users should be more aware of. Today we are quite prone to cases of fraud or attacks such as phishing, smishing, vishing, which are various methods used by hackers to obtain information illegally. Sadly, there is still no culture regarding digital banking and customers are prone to these traps. ” Ríos stated.

View of a hacker working on a computer, in a stock photo.  EFE / Sascha Steinbah
View of a hacker working on a computer, in a stock photo. EFE / Sascha Steinbah (SASCHA STEINBACH SASCHA STEINBACH /)

“In this sense, the only thing that banks do today is send emails with communication and awareness campaigns towards the client so that they do not reveal sensitive information to third parties. These emails include reminders, mentioning that As digital banking, you will never be asked for passwords, nor will you be asked for information such as cards, its pin or its user. In addition, you will never be asked for your dynamic key and token”, Assured the expert.

This is how digital banking closes in 2021

Definitely, digital banking grew disruptively thanks to the pandemic. The trend of most people in the world is to lean towards the digital sector.

The growth comes from last year, as operations with new users were accelerated by migrating to digital platforms. It should be noted that not necessarily only banks, but also different industries.

Let us bear in mind that if a company, both small or large, does not have a ecommerce or it is not oriented to offer its products in a virtual way, It will practically not survive today’s digital trends.

With respect to financial entities, there is still a very large gap to be reached. Banks still cannot handle cybersecurity 100%, as they are just on the way to it and on the other hand, clients need to have a culture of prevention and awareness to avoid falling into traps.


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