Open Banking is an inexorable trend in the operation of banks amid Industry 4.0, and while it is expected to bring more value it also poses many risks relating to cyber security, Deputy Director of the Ministry of Information and Communications (MoIC)’s Authority of Information Security Tran Quang Hung has said.

He made the warning while addressing the Open Banking Conference 2023, which was co-hosted by VnEconomy / Vietnam Economic Times (VET) and the Department of Information Technology, the Payment Department, and the National Payment Corporation of Vietnam (NAPAS) at the State Bank of Vietnam (SBV), on December 7, with a theme on transitioning business models from closed to open mode.

Apart from its opportunities, cyber space also presents a host of challenges in information security and safety, he said, adding that the banking and finance sector is no exception, particularly with banks now shifting to open mode.

Cyber attacks relating to banking and finance have increased on a global scale with more severe consequences, he added.

Figures from the MoIC show that nearly 16,000 reports of online scams were sent to the ministry via warning networks in the first eleven months of this year, of which 91 per cent were related to banking and finance.

He proposed that banks adopt more effective security systems to protect customers when conducting online transactions.

There should also be close coordination between banks and the MoIC to increase information sharing and prevent risks.