Banks well-prepared to deal with frauds: Report

Banks are well-prepared to deal with various types of frauds and have an efficient system in place to save them from such risks, says a report.
"The domestic banks seems to be well-prepared and equipped to deal with fraudulent activities, taking suitable measures and initiatives to secure themselves from risk," a PwC said in a report released at the CII banking technology summit here today.
The report, which was based on responses from 24 public, private and foreign banks, said almost all the respondents have a strong and resilient regulatory compliance framework in their banks.
"Majority of the respondents confirmed that they have in place an analytics driven fraud prediction and automated fraud reporting system," the report said.

As many as 63 per cent of the respondents said they are technologically prepared to tackle risk and compliance requirements.
It said the challenges that bank face pertaining to fraud detection are related to huge volumes of data aggregation and integration to cull out the relevant data.

According to the report, 63 per cent of banks are fully compliant with the RBI-mandated automated data flow requirement and have their implementation plans in place.
The report said banks have faced some operational challenges in their NPA automation process and three-fourths of banks are in the process of implementing NPA automation.
"There is a problem of multiple sources and the same customer may have purchased several products from the bank, so obtaining such data points in a single view and performing an NPA calculation poses to be a challenge."

Thirty-eight per cent of the banks feel technology has played an important role in bringing improvements in operational efficiency.