Chapter: – Challenges and Expectations
Challenges:
Though ATM is very advantageous, in our country it is not without problems. Our sole dependency on it is proving problematic day by day.
Challenges related to ATM growth/ better services:
Most of the time, ATM booths remains packed—this is mainly because of inadequate ATMs in appropriate locations, ATMs are still insufficient compare to the number of people using ATM Cards today. If we look at Bangladesh today, we have about 63 ATMs per million of the population compared to China who has over 200 machines per million and the US has 1,300 ATMs per million. Besides, we find ATMs in clusters at one location, mostly in metros and urban areas. The biggest challenge that bank face while deploying ATMs in rural area is the unavailability of power. Banks face difficulties in providing ATM facilities because oversaturated ATM marketplace, skyrocketing costs, increased government regulations. Moreover, ATMs being out-of-service, insufficient cash, capturing ATM Cards due to network problem, defective ATMs these are common phenomenon. Even ATMs remains out-of-service for hours without any pre-notice whereas clients have their rights to do transaction any time they want. On the other hand, most of the ATM booths are without having help-line service therefore customers can’t solve their queries immediately. To avoid paying extra fees, ATM customers are limiting the number of times they visit an ATM. There are also other challenges such as lack of consumer awareness, declining consumer confidence. Low awareness levels result in lack of prevention solutions which in turn increases the risk of fraud.
Challenges related to Frauds:
The Automated Teller Machine (ATM) has always been a popular target for criminals looking for stealing cash in a quick manner. More than likely, we have heard of criminals robbing people who have just made cash withdrawal, but there are a range of other things criminals can do to manipulate the ATM itself. These attacks can range from subtle card skimming mechanisms to more brazen approaches.
Recently Bangladesh has undergone some of the fraud experiences in the banking sector where fraudulent cash transactions were detected at six ATM booths of three banks. The incidents have rattled the banks and their customers, who are increasingly relying on ATMs to take out cash instead of the human tellers at bank counters. Fraudsters take out cash from cardholders by hacking their personal identification numbers (PIN) by installing skimming devices at six ATM booths in the city, according to the Bangladesh Bank. The PIN is not printed or embedded on the card but is manually entered by the cardholder during ATM transactions. To make out the PINs and card numbers, fraudsters install skimming devices or video cameras at the ATM booths. They then make duplicate cards with the stolen information and withdraw money from the booths. Fraudsters copied cardholders’ data by using skimming devices. Credit card fraud has gotten to be conventional on the internet which affects card holders as well as online sellers.
Challenges related to Innovation:
The greatest obstacle to innovation in ATM banking in Bangladesh is the communications infrastructure. The result of such situation is a delay in implementing new and innovative services and products like remote banking, or real time bank information systems. Besides, it is true that most of our people are not financially literate. Unless financial literacy is in place, chances of people adopting these modes of technology seem bleak. Because of mobile payment like Bkash or DBBL Mobile Payment people are more and more interested in mobile banking as it does not require going to the booth physically. This dramatically decreased the ATM deployments. Information Technology (IT) has become a vital part of the banking system. ATM frauds, E-money Laundering and Credit Card Frauds are the most witnessed cybercrimes in the banking sector. Laws against cyber-crime in our country are weak or sometimes nonexistent. Besides the IT Department of many banks are not provided with necessary training.
Expectations:
1. There should be more ATM booths at different locations and these should be always at service. There should be a good communication network between all banks and ATM booths. Besides, there should be awareness from both banks and consumers. We also expect that many banks will provide ATM services in the rural areas. For this they have to set up ATM’s locally and cheaply. They can use solar system for many underdeveloped areas.
2. It has been found that local private and state-owned banks are not doing well as
compared to foreign banks. Foreign banks are using new technology and they
are earning more. So, we expect that our other banks will also develop their banking system and replace their traditional banking system with the modern and innovative banking facilities.
3. According to the survey it is found that banks do not provide the basic ATM services except of withdrawing cash and printing mini-statement. banks should also provide the service to pay credit card bills or pay school, college or university fees.
4. The study shows that only 20% banks are planning to introduce innovative or advanced ATM services like biometrics and cheque acceptance. We expect many more banks will come forward with this ideas and work for the implementation.
5. Fraud is inevitable, but what matters that the steps taken against fraud. As the technology is developing, the fraud is also getting more and smarter. So the banking financial institute needs to be more vigilant in fighting the frauds. It is observed that fraudulent activity using card and ATM is on the rise. And, 65% of the frauds reported have been done through technology-driven services such as ATM, credit card, and Internet banking etc. An enterprise-wide strategy for risk mitigation is essential which will include a) higher investment for securing IT infrastructure, b) higher spending for laying down the policies and procedures for prevention and speedy detection, c) effective fraud management system and adequate compensation for employees and d) an accountability system enforced for all.
6. Every bank should set up Anti Skimming devices and install these devices. Besides, banks should use EMV (Europay, Mastercard & Visa) Standard card to avoid skimming. Every banking activity should be strictly monitored 24 hours through the CCTV Camera.
7. Besides, Govt. should enforce strong laws regarding ATM frauds in every banks. Recently Bangladesh Bank has recommended all Banks and financial
institutions to ensure cyber-security governance. Bangladesh Bank has also recommended all banks to provide IT related training for skill
development and monitor over the IT related issues
8. As the regulatory authority of the banking sector, Bangladesh Bank should also ensure mandatory compliance of cyber risk management and cyber security governance for the operating banks. There is also a need to bring changes in the Information Technology (ICT) Act to make it more effective to combat cyber-crime
Conclusion
In our country people are getting ATM facilities from many banks. They need not carry
the money whenever go for shopping. They can use Visa Card, Master Card and they are able to draw money from the nearest booth of market through ATM Card. But there arises some issues which are also disturbing the common people regarding the ATM services and other banking services. The banking industry is constantly experiencing cyber-crimes like ATM fraud, E-money laundering, Credit card fraud, etc. So, new technologies and services must be adopted to cope with the situation as well as competition and security governance must be complied with. Technological and legal advancement in the area of banking sector is necessary to overcome the cyber-threats in banking industry. Recently Bangladesh Bank has also tightened the security and we also expect that the central bank will be more vigilant in this issue and together we all can fight this national problem. We also hope there will be many more innovations in the banking transactions. In this age of information technology and competitive world, banking sectors should be modernized. It is positive news that mobile ATM booth and E-cash system have been emerged in Bangladesh. Radical innovations in ATM technology and mobile technology will undoubtedly be changing the way we bank, while potentially increasing access to financial services for millions worldwide. The future ATM will replace PIN by introducing fingerprint, heartbeat, or the smart phone, and eventually it will turn plastic card a thing of the past.