By Faith Taylor, Senior Vice President of Global Citizenship and Sustainability at Kyndryl
In the last 20 years, consumers have changed how they think about banking. Tech-savvy fintech companies have taken over many areas once dominated by traditional banks. That is especially true for payments, where the focus is on faster transactions, better customer experiences and secure financial interactions in a digital world.
However, according to the most recent World Bank Global Findex Database, nearly 38% of adults remain “unbanked” globally, meaning they lack access to basic banking services such as checking and savings accounts. The majority of this population lives in developing economies, especially in regions of South Asia, East Asia and the Pacific, and Sub-Saharan Africa. Much of this population (and their families) endures varying degrees of poverty. Their inability to access the financial services and markets that could support their economic growth prevents them from building better lives.
While the digitization of funds transfers and payment systems is helping to extend services and support to the previously unserved, the dangers of the digital world — especially cybersecurity threats in the form of synthetic identity fraud (SIF) — accompany these advances.
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As digital finance enables more nonprofits, communities and individuals to receive timely financial support, it also creates opportunities for bad actors to steal funds and destroy the credibility of the nonprofit ecosystem.
Similarly, many unbanked individuals are at risk of identity fraud because they generally don’t have formal identification documents, have little experience with financial systems, or live in remote areas. That makes it easier for fraudsters to target them.
Kyndryl is addressing these challenges through a dual approach: advanced technology and purposeful social engagement. Starting at the source, Kyndryl serves the world’s major financial services companies with fit-for-purpose IT systems and management. Part of that service involves maintaining deep knowledge of the cybersecurity regulations landscape as new statutes and directives emerge and evolve. The EU, Japan, India and the U.S. are leading the charge in digital payments technology and adoption. And any organization that participates in the digital economy, regardless of physical location, now must abide by a widening world of both general and industry-specific cybersecurity regulations.
On the social engagement front, Kyndryl not only delivers enterprise-class services to our nonprofit customers, but we’re also active in partnerships that teach digital skills to rural and underserved communities. In India, for example, we have partnered with the Ministry of Electronics & IT (MeitY) on Cyber Rakshak, a cybersecurity skills program for women. And in Mexico, Kyndryl and the Ministry of Economy have launched a digital skills program for macro-, small- and medium-sized enterprises (MSMEs). Our goal is to build institutional trust along with digital capabilities. We want everyday people to understand the workings of the digital world as they seize new opportunities for economic advancement. And Kyndryl’s commitment to service in the nonprofit sector mirrors the seriousness with which we support the world’s vital infrastructure enterprises.
Fraudulent behavior, such as SIF and across-the-board risk management, poses significant challenges to building a global digital payments ecosystem that is modern, inclusive and safe. In addition to our role as a leading provider of consulting, design, implementation and management of critical IT infrastructure, Kyndryl believes in reaching across cultural and economic divides to help ensure that no community is left behind.
It’s good business, and it’s the right thing to do.
