Banks have been granted permission to use CCTV cameras to record the customer experience, a move that could be seen as an attempt to reduce fraud, the US National Security Council (NSC) said.
“The cameras will enable banks to improve their customer experience while enhancing their security and privacy,” said the NSC’s report released on Monday.
“In 2019, we are also proposing a pilot program for more banks to use a combination of both existing and emerging security technologies, including security cameras and smart-home security systems, to record customer experience.”
In 2018, the NSPC said, “banks and financial institutions are in the process of adopting new technology to improve customer experience”.
In addition, the report said, the banks are planning to hire more staff, including from the private sector, to work in the security industry.
The report also noted that the banks’ technology is being used in places such as the US, Australia, New Zealand and China.
The NSPc said banks will have to “implement their plan for a secure digital payment system in a cost-effective way, including the provision of digital technology support and other cost-saving measures”.
In 2018 the NSSC said it is concerned that banks are not making adequate use of their security systems.
“This is due to the lack of adequate training for employees, and the failure of financial institutions to provide training and support to employees on the use of security technology,” it said.
The US has the world’s largest bank network with more than 30,000 branches.
The US National Credit Union Administration (NCUA) estimates that more than 70 per cent of the banks in the US have at least one customer service representative (CSP).
“As more banks become more secure and sophisticated, the need for more and better customer service representatives increases,” the NCCA said in a statement.
“We are committed to developing a robust, transparent and accountable customer service industry and will continue to support the private-sector leaders in this endeavor.”
The NSC also called for more oversight of the financial services industry and urged the US to adopt a regulatory framework that makes it easier for businesses to raise capital, provide financing and attract investment.
In the US it is currently illegal for a financial institution to raise more capital than it needs to fund its operations.
However, in October 2018, an appellate court in Washington state ruled that banks should not be required to make loans to customers, and instead have the ability to accept loans from companies that have invested in their business.
“With a few exceptions, banks are allowed to make all of their loans, which means the risk of an unanticipated loss of capital is minimized,” the judges said in their decision.