Electronic banking has become the need of the hour as it will not only enhance business volume of banks but will also increase their outreach to unbanked areas, said Muhammad Kamran Shehzad, Deputy Governor State Bank of Pakistan (SBP).
Speaking as the chief guest at a symposium on ‘Managing ATM security and risks in its operations’ here on Tuesday, which was organised by Phoenix Armour, Shehzad said that the use of high technology has improved the retail banking model and spurred the development of new electronic retail products through alternate delivery channels, including Automated Teller Machines (ATMs), mobile phones, branchless banking and point of sales(POS).
He pointed out that statistics show ATM is the predominant alternate delivery channel of e-banking and leads the retail e-banking and online services in terms of volume.
Of the total e-banking transactions during July-September 2010, ATM transactions represented 59 per cent of the total volume, he said and added that the development of a robust and reliable system providing easy access and quick cash without waiting in long queue is the key behind the high volume of ATM transactions.
Shehzad said that banks had 4,270 onsite ATMs by September 2010 and emphasised that banks should ensure provision of uninterrupted ATM services to their customers and take responsibility for resolution of all types of issues emerging from outsourcing of ATM replenishment. He, however, pointed out that the rapid development of e-banking facilities, in addition to benefits, carries risks as well. “From the banking perspective, mitigation of these risks is imperative, a pre-condition for which is to first recognise the risks and then take steps to address and manage them in a prudent manner according to the fundamental characteristics and challenges of e-banking services,” he added.
via: Express Tribune
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