Analysis of cyber-crime effects on the banking sector using the balanced score card: a survey of literature
| Date | 16 June 2020 |
| Pages | 945-958 |
| Published date | 16 June 2020 |
| DOI | https://doi.org/10.1108/JFC-03-2020-0037 |
| Author | Oluwatoyin Esther Akinbowale,Heinz Eckart Klingelhöfer,Mulatu Fekadu Zerihun |
| Subject Matter | Accounting & Finance,Financial risk/company failure,Financial crime |
Analysis of cyber-crime effects
on the banking sector using the
balanced score card: a survey
of literature
Oluwatoyin Esther Akinbowale,Heinz Eckart Klingelhöfer and
Mulatu Fekadu Zerihun
Faculty of Economics and Finance, Tshwane University of Technology,
Pretoria, South Africa
Abstract
Purpose –The purposeof this paper is to review the effect of cybercrime in the bankingsector.
Design/methodology/approach –This study uses a survey of literature and the balanced scorecard
(BSC) to analysethe effect of cybercrime on the banking sector.
Findings –The literature reviewed confirms an increasing wave of cybercrime that has impacted
negatively on the good will and economicgrowth of financial institutions, indirectly through loss of trustin
the digitalinfrastructure or directly through fraudand extortion in both developing and developedcountries.
Research limitations –This study is limitedto the application of BSC to analyse the effect of cybercrime
in the banking sectoronly.
Practical implications –To avert on going massive losses owing to cybercrime,the authors quest for
development of an alert system that can create the awareness of both the banks and the customers by
effectively implementing and integrating big data technology into their system to mitigate the negative
impacts of cybercrime.
Originality/value –The novelty of this studylies in the fact that this study uses the BSC for the analysis
of cybercrime in the banking sector, a problem that has not been sufficiently highlighted in the existing
literature.
Keywords Cybercrime, Balanced scorecard, Banking sector
Paper type Research paper
1. Introduction
This paper aims to analyse the impact of cybercrime on the banking sector by reviewing studies
from both developing and developed countries, employing the balance scorecard (BSC) as method
of analysis. On this basis, it provides critical recommendations to curb the menace.
The BSC was invented by Kaplan and Norton (1992) as a tool to measure organisational
performancebased on four identified perspectives:financial, customer, internalbusiness and
innovation and learning perspective (later renamed as “learning and growth”;Kaplan and
Norton, 1996). The BSC is used to measure and provide not only financial but also non-
financial feedback to the organisations, and has developed into a strategic management
system (Kaplan and Norton, 1996): As data collection is crucial to the progress of any
organization by providing quantitative data, the interpretation of information collected is
equally important for good decision-making in an organization. Hence, the BSC is an
approach enhancing the provision of information to management to aid policy formulation
and promotingthe overall organizationalperformance (Kaplanand Norton, 2001).
Cyber-crime
effects on the
banking sector
945
Journalof Financial Crime
Vol.27 No. 3, 2020
pp. 945-958
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-03-2020-0037
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