Non-banking financial institutions (NBFIs) have been requested by Bangladesh Bank to form their own cybersecurity management team in order to monitor and prevent digital threats.
Based on the notice of Bangladesh Bank on June 21, the cyber security teams will have to present the overall status of the IT security and system backup during the board meetings.
By the conclusion of every working day, the setting of the overall ledger and database should be collected and stored properly in line with the guidelines. There are 36 NBFIs operating in the market in Bangladesh.
With the rollout of different retail products, the financial sector of Bangladesh is increasingly embracing digital banking. For example, many lenders have already introduced application-based banking, enabling clients to do banking activities online. Additionally, some banks are setting up cash recycling machines to replace the existing automated teller machines.
The ongoing coronavirus pandemic has given a boost to these digital initiatives as they helped people settle transactions without having to visit their local branches.
With these settings, there is a necessity to bolster IT security in the financial sector. Accelerated digitalisation and remote working arrangement have increased the global financial sector’s exposure to cyber-risks and could lead to more complex cyber attacks that trigger higher losses, based on the global rating firm S&P.