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A Study of Digital Banking: Security Issues and Challenges

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... The role of the government in promoting the use of online banking is crucial [11]. A research team from the Manjula Department of Computer Science led by Vishnuvardhan et al. [12] analysed the threats to mobile device security that exist today. To transfer money from one mobile user account to another, SMS-based transaction schemes employ encrypted messages to communicate with the mobile network provider. ...
... To transfer money from one mobile user account to another, SMS-based transaction schemes employ encrypted messages to communicate with the mobile network provider. Vishnuvardhan et al. [12] examined five hypothetical future standard categories of M-Banking services, identifying their known strengths and weaknesses. A bank is an authorised financial institution that takes customer deposits and lends money to small businesses, large corporations, and farms. ...
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These small textile weavers in this emerging country such as India have been hesitant to adopt digital banking methods. This is due to a lack of awareness and trust in digital payment systems, as well as a preference for traditional payment methods. Additionally, many small textile weavers lack the necessary infrastructure, such as smartphones and internet connectivity, to engage in digital banking. These challenges have created a barrier for small textile weavers to fully participate in India's growing digital economy. This study is an attempt not only to highlight the various realistic problems that are responsible for hesitation among textile weavers of India in the usage of digital banking but also to formulate a suitable model that could depict the significant variables that are responsible for the hesitation in the usage of digital banking among small textile weavers by using Step-wise regression method. The study relies on primary data collected by questionnaire from weavers in the top ten states in India based on residence and number of weavers, with 454 weavers participating from various states. The results of the study depict that there are 5 significant factors or predictors that are responsible for the hesitation among weavers of India in using e-banking namely a sense of insecurity due to cyber-crime, unaffordability of smartphones, lack of knowledge in operating smartphones, demonstration effect and network issues.
... Security, too, is vital, with customers expecting strong measures like encryption and two-factor authentication to protect their transactions and personal data (Vishnuvardhan et al., 2020). To address these challenges, banks must integrate robust security solutions and educate customers on secure banking practices, ensuring a safe and engaging user experience. ...
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... Customers can open accounts in under ten minutes through the application interface, facilitating swift and straightforward navigation. Accessibility is enhanced, enabling round-the-clock banking services from diverse locations [14]. Various incentives, such as cashback rewards, points redeemable for discount vouchers, and attractive interest rate offers, further enhance the appeal of digital banking [15]. ...
... The immersion of smartphone utilization and the accessibility of all the more outstanding mobile handsets and network transmission capacity have made smartphones an appealing to the possibility for value added services [1]. Nowadays various mobile banking services are available, such as SMS based mobile banking, IVRS based mobile banking, USSD based mobile banking, WAP based mobile banking and Application based mobile banking services [25]. SMS, USSD and IVRS based mobile banking services work the smartphone as well as normal phones, WAP and Application based mobile banking services works smartphones/PDAs only. ...
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... Moreover, a study proposed a structural equation model by taking 220 participants who have used or intend to use mobile banking (M-banking) in Vietnam, to explain role of one of the latent variable, called antecedent (e-WOM) with the intermediates (ease of use, perceived usefulness, trust, and perceived costs), on the intention to use mobile banking (Nguyen et al., 2019). Similarly A study based on a survey on modern M-Banking and five different categories of M-banking services are determined, and the functionalities, advantages, disadvantages, security issues of it are listed out (Vishnuvardhan et al., 2020). ...
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