With cybersecurity risks intensifying, we must increase investments in technology, said Bank of Baroda MD&CEO Debadatta Chand on Wednesday.
“Considering the vulnerability at the bank level, we need to invest more no doubt about it. Let us accept the fact that the cyber threat is not on paper it is real. Attacks happen every day, but until one hits you directly, it doesn’t feel real,” Chand said, while speak at Global Fintech Fest.
Having acknowledged that cyber risk is real—and that cyber itself is a form of technology—we must remain mindful of this aspect, he added. “The challenge is not unique to India. As an international bank operating globally, we face broadly similar cyber threats across jurisdictions.”
Real Cyber Threats
“I have two takes. My first point is that to reduce vulnerability within the bank, we need to invest more. We have previously stated publicly that we allocate a certain percentage of our operating profit to technological development, including cyber security,” Chand said.
In an earlier interview with FE in May, Chand said the bank had set aside at least 10% of operating profit for technology spending, and that this would need to be raised to 15%.”
His comments come against the backdrop of an alleged leak of the bank’s customer and corporate data on the dark web in late July.
Deploying Conversational AI
Chand also said that they are increasingly trying to deploy AI in customer service to offer unique experience.
“One of the apps we have built—though it is still slightly premature to discuss details at this stage—will see the launch of its version 2 in the next couple of days. What makes this release particularly relevant for financial inclusion is that it will be AI-powered. A key feature of this mobile banking app will be its conversational banking interface.”
The bank is also looking opportunity in the fintech space in terms of collaboration. “When we talk about 2026, the role of banks and fintechs is settled. Earlier, banks and fintechs were often seen as competitors; that view no longer holds.”
Through collaboration, we are able to access data sets that are critical for credit decisions, as well as data points that support collections and related functions, he added.