Banky’s Understanding: IT Impact: Digital channels (internet/mobile/UPI/wallets) changed banking delivery. CRM, MIS, risk management enhanced. Customer satisfaction measured through digital channels. Bank mergers: different tech frameworks = data integration challenges. Ethics in Technology: Banks collect two types of data: banking data (deposits, loans, transactions) + service data (travel, insurance, investments through bank payments). Primary moral obligation: prevent data leaks and data misuse. Customers must be assured data is handled in secured and confidential manner. Monitor IT staff — no sharing customer data with outsiders (with or without reward). Periodical training: data leakage = unethical, guilty = severe consequences. Unsolicited marketing calls to customers = data leak indicator.

Banky’s Understanding: RBI Data Security Guidelines: (1) Integrity: Ensure consistency of all data in electronic form (databases, warehouses, archives). (2) Uniform protection: Within and outside the institution. (3) Secure storage: Physical controls (fire/flood protection), access controls (locks, keypads, passwords, biometrics), labelling, logged access. (4) Proper disposal: Electronic and paper media disposal procedures. (5) Transit security: Security of media while in transit or shared with third parties. (6) Encryption: Customer account and transaction data encrypted when transmitted/transported to external parties. (7) Monitoring: Block, filter, monitor email/printing/unauthorised software (password crackers, key loggers)/unauthorised hardware (wireless access points).

Banky’s Understanding: Data Privacy: Rules vary bank to bank and geography to geography. Banks need: strong internal awareness, processes, and capability for data privacy. When outsourcing to FinTech: ensure adherence to internal procedures and compliance. Staff/personnel integrity, awareness, and capability are essential. FinTech: Technology for delivery/facilitation of financial services. Collaborations = opportunity for innovation and customer benefit. RegTech: Technology facilitating regulatory compliance. Helps banks comply efficiently with RBI/SEBI regulations. RBI Regulatory Sandbox: Formal programme to test new products/services/business models in live environment with customers, subject to safeguards and oversight. Foster responsible innovation. Promote efficiency. Benefit consumers. Based on Working Group on Fintech and Digital Banking recommendations.

Banky’s Understanding: Changing dynamics: Banking moved from branches to digital channels. Anytime-anywhere convenience = anytime-anywhere ethical challenges. Customer trust = the FOUNDATION of banking (if lost, hard to rebuild). Social media banking creates new ethical dimensions: public complaints, reputation management, viral misinformation. Key principles: (1) Technology changes, but ethics remains constant — honesty, transparency, fairness. (2) New channels need new safeguards but same ethical principles. (3) Customer consent for data sharing is non-negotiable. (4) Bank mergers: harmonise ethical standards across merged entities. (5) Continuous training on evolving ethical challenges. (6) Leadership must model ethical behaviour in digital era.