So you are all set to Safe Mobile Banking Using Smart Phone. Or you go on a vacation and arrived at airport where you suddenly remembered that you have forgot to pay the rent of your home. Worse is that, your landlord is not a forgiving or patient person. What to do now? Mobile banking is the best option and people can make safe mobile banking using smart phone. But, the fact that is it safe still remains.
Mobile banking saves a great deal of time, effort and is easy however, it involves money and in some cases lot of money. This is also what cyber crooks want and most of their targets and attacks are targeted towards mobile banking. How to avoid this situation? Mobile antivirus can be a solution however, being informed about the threats associated with mobile security is also important.
Myths and Reality of Digital Banking
Myth 1: Mobile Banking Is Utilized Mostly By Generation X and Y
On an average Seniors and Baby Boomers comprises 75% of the total deposit volume within financial institutions and from this percentage 45% users are actively using mobile banking services. There are conceptions that these segments are quite comfortable with this technology and the security offered by the channels. Moreover, they become avid users and perform safe mobile banking using smart phone. This is as a matter of fact a reality. According to a study, around 55% of Generation Y is actively using mobile banking services and this percentage increases to 57% for Generation X, 27% for seniors and 46% for Baby Boomers.
Myth 2: Consumers Using Mobile Banking Spend Little Time with Websites of Financial Institutions
The average time required for a single login on a bank or other financial institution website is around three and a half minutes however, active digital banking users access all their required financial information 12 times every month through digital banking devices like smartphones and tablets. Overall, mobile banking users spend an average of 35 minutes every month on the website of their banking institution and a lot less on other popular websites like Amazon or LinkedIn.
Myth 3: Mobile Banking Is Still Considered To Be a Secondary Mode of Transaction – Branches Are the Primary Transacting Mode
According to the ComScore report issued in September 2014, around 147.9 million people in the US are using smartphones and almost 50% of this figure is using mobile banking technology. Consumers are utilizing online banking services touches their financial institution 3-4 times more than offline bankers. Financial institutions find this opportunity to be huge where they can actively engage and transact with their customers on the digital platform in comparison to offline bankers.
Security Aspects Used In Digital Banking Apps
- Select an account with two factor authentication: Many digital banking apps are offering two factor authentications in which a unique code is required every time a user login to their online account. The code is valid for small time durations and is generated through a small device offered by banks.
- Accessing from secure locations: Most mobile banking apps are now providing VPN (Virtual Private Network) to offer security to mobile banking users who access their account from remote areas. The connection developed through setting up VPN is encrypted to their work or home network and access the bank from this location. Moreover, apps are encrypted with the https which acts as a confirmation that the account is being accessed from an encrypted connection.
- Account notifications: Most banks are also giving notifications related to a specific activity of your account. For example, an email or text notification with alert the account holder if any withdrawal matches or it exceeds the account balance or the specified amount. Moreover, if the account balance goes down below a certain limit, alerts will be sent to the account holder as a security measure. These notifications can be considered as an alarm of any suspicious activity in your account.
In order to counter the loopholes within the security elements of mobile banking applications, institutions should enforce stronger restrictions so as to offer protection to users. A good way to prevent this security breach is the introduction of voice biometric identity verification. Through this measure, a criminal may gain access to the smartphone or other devices however; they cannot unlock the banking app without inserting the biometric evidence thereby, providing safety to the user and their mobile banking experience.