Risk Management in Digital Banking
Keywords:
digital banking, risk management, cybersecurity risk, fintech, operational risk, financial stabilityAbstract
This paper looks at the dynamic nature of risk management in digital banking and how technological changes have transformed the old banking risks besides creating new weaknesses. The study is a qualitative and literature-based approach in order to examine the major risk domains such as cybersecurity risk, operational risk, credit risk, and systemic risk in digital banking scenarios. The results have shown that although digital banking leads to improved efficiency, accessibility and financial inclusion, it also puts users more at risk of cyber threats, data hacking, and technology reliance. The paper also mentions the increasing importance of artificial intelligence, big data analytics and regulatory measures in risk detection and reduction. But issues like algorithmic bias, regulatory loopholes and system failures still happen. The study highlights the importance of integrating and adaptability in risk management actions that are technology-oriented and in which innovation and security balance in a manner that brings stability in terms of finances in the long run.
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