Data Privacy and Cyber Security Must Be Prioritized for MFIs

Alok Kumar Choudhary, Managing Director of the State Bank of India (SBI), emphasized the importance of data privacy and cybersecurity for microfinance institutions (MFIs) as they handle the data of a large number of customers.

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Speaking at a conference organized by Sa-Dhan, Choudhary urged MFIs to focus on capacity building to effectively address future challenges.

Choudhary highlighted the need for MFIs to integrate with evolving regulations, particularly in the context of data privacy laws. Given the significant volume of data managed by MFIs, he stressed the importance of developing action plans and attention to data privacy to ensure customer information remains secure.

He also underscored the importance of improving the ease of digital transactions for financial institutions. Choudhary emphasized the need to address the changing preferences and convenience of customers, especially for those at the bottom of the economic pyramid. Understanding customer needs and providing easy solutions is crucial in serving this segment effectively.