"Branchless banking is expanding gradually with the participation of stronger players and presently the agent network under the umbrella of branchless banking has exceeded 18000 agents who have facilitated around 38 million transactions amounting to Rs190 billion," he said on Tuesday while addressing the 7th International Information Security Conference (InfoSec 2011).
He said in addition to these technology-driven access points, the use of alternate modes of payments has also gained wide popularity and added that there are over 1.3 million credit cards and 11 million debit cards in circulation.
Referring to the developments in IT sector pertaining to banking industry, he called for exercise constant vigilance on Information Technology system for safety of the financial system.
"Well defined and documented security policies, standards and guidelines are the cornerstones for good information system security,"
He said that each institution is required to define, document, communicate, implement and audit information security to ensure confidentiality, integrity, authenticity and timely availability of information.
The Deputy Governor said that the deployment of information technology in financial institutions has helped in attaining better systemic efficiency while at the same time introduced new areas of risk and threats apart from the risk inherent in the traditional banking and financial activities.
The survival and growth of financial institutions and business largely depend on the security infrastructure deployed by them for ensuring the accessibility, quality, adequacy and integrity of their information and information systems, he added.
Kamran said the need for tighter and vigilant information security controls assumes greater importance in view of the prevalent security environment of the country.
The SBP Deputy Governor said that the security procedures for protection of information resources will require the identification and assessment of risks and the development of proper controls to offset and reduce potential threats.
He said a small network interruption or data error can cause huge losses for a business apart from the loss of reputation and trust of the customers.
He emphasized that financial institutions should address, among others, the security issues related to unauthorized access to information and information systems, manipulations of data, loss of confidential information, problems inherent in an open network and disaster recovery, business continuity plans while deploying technology-based delivery channels.
He said that banks are shifting from their traditional product-centric model to customer- centric model.
The banking network in the country is providing services to a vast population through effective use of the Alternate Delivery Channels. At present, the banking network of the country of more than 10,000 branches has over 7,000 Real-Time Online Bank Branches; 4,800 ATMs and over 40,000 Point of Sale Machines, he maintained.
Addressing the Conference, Chairman Pakistan Telecommunication (PTA), Dr Mohammed Yaseen said that PTA has completed its exercise in collaboration with renowned industry players for drafting "ICT Security Guidelines" for Telecoms, Government of Pakistan and other end-users.
He said that there was good progress in policy formation regarding 3G (Third Generation) and the PTA has also prepared road map and potential to launch the product.
"Individuals and organisations should practice standardized information security procedures and techniques due to their enormous reliability and stability," he emphasised.
Copyright APP (Associated Press of Pakistan), 2011