As technology continues improving, more financial transactions will continue happening online. These transactions will be easier and more convenient for customers and financial institutions. However, online transactions come with their own special risk. Cyber security in the banking sector aims to safeguard users’ assets, whether cash or data; this is crucial because society is slowly going cashless and more transactions are being performed online. In response to these challenges, the British Management University (BMU) in Uzbekistan's Tashkent, held the FutureBIZ Connect Forum on May 1, focused on the integral roles of fintech and cybersecurity within modern business and banking sectors.
The leading experts gathered to discuss key issues and share insights into the digital challenges and solutions that are currently shaping the industry.
In the past year alone, Uzbekistan faced a staggering 11.2 mn cyber attacks targeting web resources within the country. This alarming figure prompts us to question – how resilient we are? How robust are our defences in the digital arena?
The digital economy now comprises over 15% of the global GDP, expanding at a rate 2.5 times faster than the global physical GDP over the last decade, the World Bank reports. Such growth underscores the transformative impact of digital platforms on both societal and business landscapes.
The "Cybersecurity Challenges in Fintech and Banking" session, moderated by Dana Yessentay of KPMG Caucasus and Central Asia, saw leaders such as Askar Zakirov from NAPP and Andrei Shishkin of Uzcard, Lionel Henderson from the Sino-British College, Lilia Achilova, Chairman of the Council Women Advisory Board at TSUL, Bachana Shelia, Managing Partner at Loialte, and Dmitry Samco, Deputy Head of Project Management at Ipak Yuli Bank, will share their insights.
Nika Kurdiani, CEO of TBC Group Uzbekistan, stressed the critical need for robust cybersecurity to protect the digital ecosystem, emphasizing that, "The massive digitalization of the world creates a huge dependency on the digital ecosystem, where security issues are present, and they're just called cybersecurity. But it is normal security topics where we have to defend our customers, protect their data, protect their environment, protect their services, and make sure that everything works.
In the digital area, people expect seamless experiences, and cybersecurity is exactly the area which can somehow create problems within the seamless delivery of experiences. We have to make sure that people trust cyber, digital services, they trust digital ecosystem and they feel secure to operate within this digital ecosystem.”
Data from the World Bank reveals that the digital economy now comprises over 15% of the global GDP, expanding at a rate 2.5 times faster than the global physical GDP over the last decade. By 2030, this sector is projected to constitute as much as 30% of the global GDP, potentially creating 30 mn resilient job opportunities. Such growth underscores the transformative impact of digital platforms on both societal and business landscapes.
Dmitry Samco of Ipak Yuli Bank highlighted the global challenge of sourcing skilled cybersecurity professionals. Concurrently, BMU announced its pioneering step to establish the first Management Information Systems department with a focus on cybersecurity in Uzbekistan.
Prof. Conrad Ozog, Rector of BMU, stated: “In Uzbekistan, cyber security is perhaps not what it could be. It's not as tight here as it is in other parts of the world. For example, if I go to a supermarket, they will ask me my code, and everybody shows their code. Now, in other parts of the world, the code is a secret you don't tell anybody. So that's just a small aspect of cyber security.
Education in cybersecurity is essential for the development of this country, and we need graduates who understand it, but who also need to understand the business environment. So rather than going for, say, a hardcore it degree, we've gone for this management information system that works with business and works with computing. So cybersecurity is essential to that. And we're all digitized now, and if we don't have security in what we do, then the whole thing falls."
Olim Talipov, heading the CERT-CBU at the Central Bank, noted the recent establishment of a cyber security centre mandated by a presidential decree in 2021, which has been instrumental in addressing new cyber threats.
"The Central Bank established a Cyber Security Centre in 2021 by presidential decree. As a result of this, a website cert.cbu.uz was developed. This website provides information on new cases of cyber threats identified, including fraudulent activities. In doing so, this site can provide information from the public or a user of this site, information about cases.
Our centre collects that information, investigates whether those same threats are current or apparent, and then undertakes appropriate actions," he said.
In 2023, Uzbekistan ranked 94th in the National Cyber Security Index (NCSI), a slight drop from its earlier positions. Since the beginning of 2023, our country has fallen from 89th to 94th place. At the end of 2022, Uzbekistan held the 88th position. Among Central Asian countries, Kazakhstan has the best result (78th place). It is followed by Kyrgyzstan (91st), Uzbekistan, Tajikistan (153rd) and Turkmenistan (164th).
In the realm of regulatory frameworks and the development of the sector, Askar Zakirov, Head of the crypto-assets turnover sphere development department, NAPP noted the rapid advancement and the accompanying risks. "The more our financial technology develops, the more we will experience cyber threats," he stated, underscoring the ongoing need for robust regulatory measures.
Moreover, a new trend in fraud was discussed where scammers use artificial intelligence to impersonate relatives of individuals. They typically contact victims via city phone numbers, claiming to be in urgent financial need due to accidents and hospital stays. Even though Cybersecurity Centers try to combat these attacks, the issue remains unresolved.
Cihan Salihoglu, Senior Managing Consultant at Mastercard shared his views with Daryo on this situation. "This issue is actually a combination of both lack of education and not enough qualified personnel because that kinds of fraudsters or scammers are exploiting the lack of awareness on the consumer side which has to be raised. Organizations in alignment with the government should work on awareness activities. The activities like this forum help to boost the level of awareness across the country. On the technical side, there are a lot of things that can detect and respond to that kind of scammers, but again this problem is a combination of both lack of education and not enough qualified personnel," he said.
Under the chairmanship of Nargis Dustmatova from the Fintech Association Uzbekistan, the forum explored how fintech is revolutionizing traditional banking and financial services, enhancing security, and refining customer experiences.
The FutureBIZ Connect Forum successfully brought to light the critical role of fintech and cybersecurity in today's digital age, highlighting the need for continuous innovation, education, and regulation to safeguard and enhance the digital financial landscape.
Journalist - Sabina Aliyeva
Follow Daryo's official Instagram and Twitter pages to keep current on world news.
Comments (0)