Cybersecurity Expert Shortage: A Future Challenge, Says SBI Chief Setty

SBI Chairman CS Setty highlighted the shortage of cybersecurity experts as a significant future challenge. Speaking at the annual Fibac event, Setty noted that banks are increasing their investments in cybersecurity to safeguard the system. However, he pointed out that professional support for many cybersecurity activities remains limited.

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Cybersecurity Concerns and Investments

Setty, who recently assumed his role as chairman of the country's largest lender, emphasised the growing need for cybersecurity professionals. He stated, "I think that's going to be a big challenge going forward." HSBC's country chief executive Hitendra Dave revealed that the global lender faces 1 lakh cyberattacks daily.

Additionally, Setty mentioned the necessity of evaluating whether technology investments yield returns proportional to the expenditures mandated by regulations. This analysis is crucial for ensuring that technology spending is justified and effective.

Marketing and Outreach Efforts

Meanwhile, SBI Managing Director Ashwini Tewari discussed the bank's increased marketing and outreach spending. This move comes amid slow deposit growth and the need to expand the brand's reach. Tewari noted that banks can no longer rely on walk-in customers for deposits, indicating a shift in strategy.

At the same event, Standard Chartered Bank's Zarin Daruwala suggested that foreign currency bond issuances could help gather resources. However, she flagged the increase in withholding tax from 4 per cent to 9 per cent as a reason for the slowdown in dollar bond issuances. She added that raising money via Gifty City is an option but noted the limited number of investors in India's only international financial services centre.

Support for Startups and MSMEs

Department of Financial Services Secretary M Nagaraju urged banks to take more risks and support startups. He also called for increased lending support to micro, small, and medium enterprises (MSMEs), stressing that coverage needs to improve rapidly.

Nagaraju's remarks underscore the importance of fostering innovation and growth within India's startup ecosystem. By providing more lending support to MSMEs, banks can contribute significantly to economic development.

The discussions at Fibac highlight various challenges and opportunities facing India's banking sector. From cybersecurity concerns to marketing strategies and support for startups, these issues require careful consideration and action from industry leaders.