Cybercrime is the biggest threat to Pakistani banks, survey finds
According to PwC Pakistan’s recent survey, 90% of bankers viewed cybercrime as the biggest challenge facing the country’s banking sector. Fraud followed closely at 70%, with terrorism financing coming in third at 60%.
The results gathered insights from more than 75 Chief Compliance Officers and business heads. Among the key risks, “very high” was cited by 90% of the CCOs in relation to cybercrime. Fraud accounted for 70%, terrorism financing 60%, tax evasion 56%, and money laundering 55%.
Despite increased application of digital technology in the banking sector, financial institutions and organizations still face major challenges in areas related to data management, human resources, and cost pressures of compliance for financial crimes. More than 60% of all respondents said these remained areas of concern.
Addressing these issues, according to bankers, investment in data governance and cleansing is required by 95 percent. Meanwhile, 90 percent believe that optimization of technology is essential, and 75 percent are pushing for specialized training programs in the coming year. In addition, the adoption of emerging technologies and talent development were recognized as essential for compliance standards.
Thus, as technology continues to transform the financial landscape of Pakistan, its banks will need to intensify efforts at capabilities in technologies, regulatory compliance, and compliance cultures to be able to grapple with growing risks.
