MIS ASSIGNMENT of Paytm payment bank crisis.pptx

MIS ASSIGNMENT of Paytm payment bank crisis

1. Management Information Systems and Application Development Assignment – Case study Submitted to Prof. G. P. Sahu SMS, MNNIT Allahabad Submitted By Shubhi Gupta 2023MB46

2. Case study -1 Paytm Payment Bank Crisis

3. QUES 1- What were the primary operational challenges encountered by Paytm Payment Bank during the crisis , and how did these challenges affect its ability to deliver seamless banking services to customers? Primary Operational Challenges: During the crisis, Paytm Payment Bank encountered significant hurdles in delivering smooth banking services: System Outages: The bank's rapid expansion strained its technology, causing frequent disruptions in services like account access and fund transfers, inconveniencing customers. Transaction Failures: Operational flaws led to transaction errors, leaving customers frustrated with failed payments or transfers, impacting their trust and satisfaction with the bank. Customer Service Bottlenecks: A surge in complaints overwhelmed the bank's support teams, causing delays in addressing issues and increasing customer frustration.

4. QUES 2- What were the primary regulatory compliance issues faced by Paytm payment bank ,and how did they impact the bank’s operations? Regulatory compliance issues faced by Paytm Payment Bank: Not checking who customers really are (like not checking IDs at a party) caused problems. Ignoring money rules (like not following game rules) got the bank in trouble. Breaking these rules upset the "principal" (like getting in trouble with the school principal). It made the bank look bad (like a student making the whole class look bad). Not following rules could lead to big trouble, like getting fined or shut down (like not doing homework leads to trouble).

5. QUES 3- What strategies could Paytm payment bank have implemented to mitigate the impact of the crisis on its reputation and restore customer confidence? Strategies that could Paytm payment bank have implemented to mitigate the impact of the crisis on its reputation and restore customer confidence : Be Open and Honest: The bank should talk to customers more and tell them what's going on. This helps build trust because people know what's happening and feel reassured that the bank is working to fix problems. Use Better Technology: Investing in better technology means fewer problems like the website crashing or transactions failing. It's like upgrading your phone to a newer, faster model so it doesn't freeze up as much. Follow the Money Rules Better: The bank needs to make sure it's doing all the right checks to stop bad things from happening with money. It's like making sure your piggy bank has a lock on it so nobody can take your money without permission. Make Customers Feel Heard: Talking to customers and helping them out when they have problems makes them feel valued. It's like having a friend who listens when you're upset and tries to help you feel better.

6. QUES 4- What lessons can other financial institutions learn from the Paytm payment bank crisis, and what measures should they take to prevent similar situations in the future ? Lessons Learned and Preventive Measures: Follow Rules to Stay Safe: Banks should always follow the rules to avoid getting into trouble. For example, just like following traffic rules keeps you safe on the road, following banking rules keeps the bank safe. Prepare for Growth: When things grow quickly, like a bank getting lots of new customers, it can cause problems if the systems can't handle it. For instance, if a classroom gets too crowded, it's hard for the teacher to manage everyone. Make Customers Happy: Banks need to keep customers happy by listening to them and being honest. It's like making sure your friends have a good time when they come over – you listen to what they want and make them feel welcome. Keep Getting Better: Banks should always try to do better by checking if things are working well and making changes when needed. It's like practicing a sport – the more you practice, the better you get. Similarly, the more a bank improves, the better it serves its customers.

7. Case study -2 Data Breach Crisis of Paytm Payment Bank

8. What role did insider threats play in the data breach, and what measures could Paytm Payment Bank have implemented to detect and prevent unauthorized access or data leaks by employees or contractors? To prevent insider threats like unauthorized access or data leaks, Paytm Payment Bank could: a. Limit who can access sensitive data by giving only necessary access. b. Teach employees about security risks and why it's important to keep data safe. c. Keep an eye on what employees and contractors do on the network. d. Use tools to stop employees from sending sensitive data where it shouldn't go. e. Make it easy for employees to speak up if they see anything fishy without worrying about getting in trouble.

9. What specific security vulnerabilities and weaknesses in Paytm Payment Bank's infrastructure contributed to the data breach. Paytm Payment Bank's data breach happened because: a. They didn't keep their software up to date, which made it easy for hackers to exploit known flaws. b. They didn't use strong enough encryption to protect sensitive data as it moved around or sat on their systems. c. They didn't have strong enough barriers in their network to stop hackers from moving around once they got in. d. They didn't regularly check for and fix weaknesses in their systems, making it easier for hackers to find a way in.

10. How did Paytm Payment Bank's reliance on third-party vendors and service providers introduce additional risks to data security, and what steps could the bank have taken to enhance vendor risk management and oversight? 1. The risks Paytm Payment Bank faced with third-party vendors: a. They couldn't control how well vendors kept data secure, making it hard to protect sensitive information. b. Hackers might attack vendors first to get to the bank's data. c. They didn't manage vendor risks well, not checking how safe vendors' systems were throughout their time working together. 2. To manage vendor risks better, they could: a. Make a strong plan to keep an eye on vendors' security, including checking their security often and making rules in contracts. b. Check vendors' security often to make sure they follow the right rules and laws. c. Use extra security measures like multi-factor authentication and limits on what vendors can access.

11. What were the immediate and long-term impacts of the data breach on Paytm Payment Bank's reputation, customer trust, and regulatory standing, and how effectively did the bank respond to these challenges? For Immediate action Customers stopped trusting the bank because they didn't feel their information was safe anymore. Government regulators checked if the bank followed data protection laws, which could lead to fines. Bad news about the breach made the bank look bad, hurting its reputation. For Long – term Money problems came from lawsuits, fines, and fixing things after the breach. Customers left for other banks because they didn't trust Paytm anymore. Paytm had to spend a lot of money on better security to stop another breach and win back trust.

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