Security is inversely proportional to flexibility or ease of use, a banker confided in me recently. It’s a telling statement. This one pithy assertion lays bare the philosophy behind life today, with or without technology. Let me explain. As technology takes over large tracts of our life, it is inevitable that it will also affect our financial planning and our daily interface with payments systems. But, then, nagging questions pop up: are we ready to embrace change? Are we adaptable to the demands of new transaction methods and protocols?
These concerns arise because there is marked increase in fraud incidents, especially in areas of banking which use information technology heavily. Combined with our inability to understand the plumbing, the unknown easily morphs into the unwanted and the unpleasant. The default mode is to blame technology for everything. Unfortunately, banking and frauds are joined at the hip. Large sums of money siphoned off as fraudulent loans, or withdrawals from savings accounts via spurious identities, were happening even when clunky, manual ledger posting machines were in use.