A complex conundrum of Information security in virtual banking

This paper examines a complicated dilemma of information security in virtual banking, where technical innovation intersects with the necessity to safeguard advanced financial systems, resulting in paradoxes and tensions. The study reveals a significant knowledge deficiency concerning the amplification of information security vulnerabilities as financial organisations shift from conventional to digital banking.  Framed through a socio-technical lens, the objective of this research study was to develop a grounded theory that offers new insights into the conceptualisation of information security in virtual banking. This conundrum is characterised by its multifaceted nature and involves competing interests in security, information security, usability, technological innovation, and customer trust. To resolve the difficulties of the conundrum, the qualitative researchA qualitative research study employing an innovative mixed-methods dual approach, integrating the Straussian grounded theory method (GTM) with Checkland’s Soft Systems Methodology (SSM), was conducted, facilitating both detailed analysis of information security practices and a comprehensive understanding of virtual banking ecosystems. The study's critical findings from 20 participants, derived from Grounded Theory Methodology (GTM), are encapsulated in the Trust-Responsive Security Architecture (TRSA) framework, which integrates socio-technical perspectives and demonstrates how these inherent tensions can be managed.  TRSA asserts that virtual banks encounter a dilemma wherein excessive security can result in complexity, friction, and diminished usability, potentially undermining trust. This situation is reframed as an emergent socio-technical balance issue, necessitating that virtual banks continuously negotiate and manage the equilibrium between security, trust, and usability. The study thus claims that the ramifications of this research are that vThe research indicates that by implementing TRSA, virtual banks can emphasise user-centric design in virtual platforms to balance trust and information security requirements, hence fostering trust, usability, and regulatory compliance. Key Words:Virtual banking, Information security, Conundrum, Grounded Theory