For the past few years, banking has encountered some changes. Since the emergence of online banking, there has ever been a fast-evolving technological era called mobile banking. This comes with mobile banking apps. Most financial institutions have not been left behind as far as mobile banking opportunities are concerned. Research has it that this will be the way to go as far as banking is concerned. All the same, people are always worried about mobile banking apps security. Read on to know what mobile banking entails.
What Is a Banking App?
A banking app refers to a mobile application where one can easily access their bank account details. Additionally, users can complete transactions directly from their phones, tablets, and other mobile devices. Depending on the bank you are accessing, it will be possible to complete different actions through your baking application. Many baking apps out there will give you access to your current balance as well as the transaction history. Other tasks you will complete via a mobile banking app include depositing checks, initiating transfers to different bank accounts, and paying your bills. The best thing about these banking apps is that they help you locate ATMs accessible for your use. Some of the best mobile banking apps include the First Security Bank app, Citizens Bank app, and the Bank of America Authenticator app.
Why Do We Use Mobile Banking Apps?
There are so many reasons why people use mobile banking apps, including managing their cash flow. Below, we highlight some of the main reasons why mobile banking apps have risen in popularity.
- People use mobile banking apps to check their bank balance and also transfer money.
- Bank branches are closing all over, which makes it necessary for better alternatives.
- Most phones have fingerprint scanners, which is a feature that misses from many computers.
- Banks spend too much time and resources on their applications bringing several new features.
Is It Safe to Bank Via App?
From a general approach, most banking apps are safe to use. All the same, like other fast-moving technologies, mobile finance services face threats from tech-savvy criminals. Even though banks have managed to stop millions of money from being lost to fraudsters, more needs to be done. Because mobile is a fast-evolving platform for technology, even the vast companies cannot keep up with the changing security needs. According to reliable reports, most mobile finance apps have issues with secure coding. For instance, 83% of these apps showed that data was stored insecurely while others used weak Encryption. In this regard, mobile banking apps security is an essential requirement.
What Can Bank Institutions Do for App Safety & Security?
In most financial institutions, customers seek the convenience of mobile banking. All the same, this type of banking comes with its share of security risks both for the customer and the bank institution. The challenge here is how one can remain ahead of cybercriminals. Below are some of the things that bank institutions can do to improve mobile banking apps security.
Add a Multi-Factor Authentication Function
A simple requirement to submit just a single password before one can access their bank account is not enough. The reason for that this is a simple defense system that can be easily beaten. In this case, you need to add a multi-factor feature for authentication. For instance, the OTP (One Time Password) and fingerprints and add an extra security layer. This helps to authenticate users correctly.
Encourage the Use of NFC
Embedded SIM Cards- even though you do not have to force your consumers on this option, it can be a good suggestion. NFC-embedded SIM cards are not like ordinary SIM cards. They allow a consumer to have a secure download of the credit card information. THEREFORE, these SIM cards allow them to protect their complete account information and avoid carrying their actual card or swiping it.
There are so many entities that play an essential role in online transactions. These include issuing banks, payment cards, card brands, and merchants. In one year, there is a heavy exchange of data that is worth so many dollars. This has made hackers discover a simple attack spot for these online transactions. A solution to this threat is simply the end-to-end EncryptionEncryption. It helps to make sure that your data is sound and safe. What it does is conduct some security audits as well as penetration tests. This, therefore, takes the security measures to another level.
The emergence of fingerprint devices adds an extra dimension to banking apps. It will obtain different signal sets, including IP address, time, location, device type, browser, etc. The good thing is that you can easily hire firms that develop mobile apps to make an app with the fingerprint feature. Alternatively, they can make apps that are compatible with fingerprint devices.
Offer Real-Time Text and Email Alerts
Another way to upgrade the mobile banking apps’ security is using real-time text alerts. It is safe to assume that a mobile baking user with their smartphone can access their text message or email. By simply sending a fast and real-time text alert or email, the customer will get notified of the account activity. This makes it very easy to prevent fraud. Notifications can allow someone to know in case their information is getting compromised.
The Power of Paperless Banking
Mobile apps and IT advents have a massive impact on all sectors. In this case, banking is no exception since digitalization has transformed several processes. After digitalization, banks can now go paperless with most of their procedures. These include the basics like creating a bank account as well as handling transactions online. Using online or digital platforms will quickly increase the transparency and efficiency of all your files. Access also becomes quick and very convenient. To implement all these, different banking institutions need mobile app solution providers.
Utilize Behavior Analysis
There are particular types of software available in the market that can monitor and analyze login activity and location. This, therefore, keeps the online account activity in check for the consumer. With this technology’s help, the mobile banking app can easily flag any abnormal behaviors to be investigated later. After further investigation, you can realize that it was a text or email alert to customers advising them on suspicious activities. It can also be a call from the bank institution seeking to investigate dubious activities.
Digitalized Documents Secure
The other way to increase a mobile banking application’s security is safe and digital documentation. Coming up with some electronic signature could help in different verticals. These include call centers, e-commerce as well as retail branches. The approach helps to bring huge documentation portions on the mobile. Most importantly, it minimizes fraud cases to beef up security.
Make Use of Safe Access
Secure connections can be made through technologies such as HTTPS. With this, you can be sure that your account information remains secure between the web browser and the related website. It is also through this technology where customers remain safe from fraudulent logins as well as data theft.
What are the Risks with Banking Apps?
Fraudsters are everywhere, and as a result of this, they are now finding ways of exploiting technology. One of the main risks of mobile banking apps security is the introduction of malware, which comes in the form of fake apps. If you do not know what this is, these are applications made to look like the actual software to that of the bank. Through this malware, you will get access to different bank accounts.
Malware can also be deployed as ransomware which is a kind of virus. The ransomware will steal information and files and also demand money to be released. You need to understand that malware made to hack accounts might not be in the form of fake apps. There are some Trojans that have been located in 3rd party applications that are disguised as valuable tools. For instance, these can appear as some programs to optimize the battery.
The Bottom Line
Like any other new product, developing technology poses risks to its users. In this case, banking through mobile apps is nothing different. Considering the speed with which apps are progressing, mobile banking seems to be secure. In comparison with online banking, credits go to mobile banking apps. With the convenience of transactions being completed from the palm of a hand, most customers have switched to mobile banking apps. If research is anything to go by, the trend will continue. With the information in this post, we believe that you know how to minimize mobile banking dangers. For instance, you need to follow the laid-out online safety procedures closely. Otherwise, mobile banking apps are meant to ease your financial transactions.