New Delhi, October 23 (H.S.): Bank of India (BoI) and the Centre for Development of Advanced Computing (C-DAC) have signed a significant Memorandum of Understanding (MoU) to promote the adoption of emerging technologies in the banking sector, strengthen cybersecurity and develop financial services capable of meeting future requirements. The agreement aims to make banking services more secure, efficient and technologically advanced through the application of quantum technology and other cutting-edge innovations.

The agreement will establish a comprehensive framework for joint research, technological development, pilot projects, technology demonstrations and capacity-building initiatives between Bank of India and C-DAC, an autonomous scientific society under the Ministry of Electronics and Information Technology (MeitY). Under the partnership, the two institutions will identify areas within the banking and financial services sector where emerging technologies can be deployed effectively.

A key objective of the collaboration is to develop a quantum ecosystem that can foster innovation across the financial sector. Quantum technology could have significant implications for banking security, data protection and complex financial decision-making processes in the years ahead. In view of these developments, the two institutions will explore the potential of quantum-inspired technologies and quantum-safe solutions.

Quantum-safe technologies are designed to protect financial systems against emerging cybersecurity threats that could challenge conventional security mechanisms in the future. Through this collaboration, the two organisations will focus on enhancing the security, reliability and resilience of banking systems, enabling them to respond more effectively to evolving technological risks.

The scope of the MoU extends beyond quantum technology to encompass artificial intelligence (AI), blockchain, high-performance computing and cybersecurity. These technologies are expected to be explored for a range of potential banking applications.

The proposed areas of application include intelligent document processing, AI-powered systems to assist customers and employees, fraud analytics, credit assessment, financial analysis, secure AI platforms, digital identity solutions, secure data sharing and smart contracts. The adoption of these technologies could help streamline banking operations, improve efficiency and strengthen the identification and management of financial risks.

C-DAC and Bank of India will jointly identify priority use cases relevant to the banking sector and subsequently develop proofs of concept (PoCs) in secure testing environments. These trials will assess the practical applicability, technical feasibility and potential benefits of the proposed technologies. The performance of the new solutions will also be evaluated against that of existing systems to determine their effectiveness and suitability for potential deployment.

Secretary of the Ministry of Electronics and Information Technology, S. Krishnan, congratulated Bank of India on the initiative and commended its collaboration with C-DAC to advance indigenous technological innovation. He emphasised the need to develop a quantum-resilient financial ecosystem amid growing cybersecurity concerns and emerging technological threats. He also underscored the importance of preparing the banking sector to address both the challenges and opportunities associated with the advent of the quantum era.

The MoU was formally exchanged by Aditya Kumar Sinha, Executive Director of C-DAC Mumbai, and Satyendra Singh, Chief General Manager (IT) and Chief Information Officer (CIO) of Bank of India.

The occasion was attended by S. Krishnan, Secretary of the Ministry of Electronics and Information Technology; Rajiv Mishra, Executive Director of Bank of India; Sudeep Srivastava, Joint Secretary in the Ministry; E. Magesh, Director General of C-DAC; and other senior officials from the ministry and the two institutions.

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Hindusthan Samachar / Jun Sarkar