The next challenge relates to the level of security in the usage of IT based systems in banks. Much has been said and detailed about the need for fool proof security systems in banks, but we find that security breaches and the consequent perpetuation of frauds are also taking place. Security in banking applications is not a feature but a built-in process.
The Public Key Infrastructure (PKI) which is positioned as a very advanced security mechanism may be brought to nought if there is a compromise of the smart cards housing the digital signature, by the holder and he shares the card with an unauthorised person.