Like most people, you probably use a mobile banking application

Because, if you’re like me you’re always on the run.

Mobile banking is a fast and convenient way to effectively manage your money – i.e. check your balance, transfer money, pay bills online, and more.

However, only about two-thirds of bank customers with a smartphone currently enjoy the benefits of mobile banking.

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Why has the adoption rate not yet reached its highest potential? One of the reasons is a lack of trust from the consumers.

Especially seen in older generations, individuals do not fully trust technology. The thought of having all their banking information right on a mobile app – and at the palm of their hand – simply scares them, rather than intrigues them.

But, with fraud, IP infringement and malware so prevalent in our technology-driven world, how do you convince the remaining percentage of bank customers to take advantage of the ease of mobile banking?

I’ll tell you how…

Make it safer – overwhelm them with the amount of security that accompanies your mobile banking application.

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What can financial institutions do for app security ?

1. Add a multi-factor authentication feature

Simply requiring the submission of a single password before granting access to your customer’s bank account is a defense system which can be beaten.

By adding a multi-factor authentication feature – such as generated one-time passwords or fingerprints – you add an additional layer of defense which cannot easily be deceived.

2. Encourage the use of NFC-embedded SIM cards

While you can’t force this security option on your consumers, you can highly suggest it. An NFC-embedded SIM card is a SIM card that allows consumers to securely download their credit card information into the Near Field Communication (NFC) SIM card.

This option is more of a means to protect their overall account information – by not carrying their actual card, and not swiping it,

they lessen the risks that their credit card information could be compromised, potentially giving access to their mobile bank application.

3. End-to-end encryption

Many entities like payment cards, merchants, card brands and issuing bank play a significant role in an online transaction. Exchange of loads of sensitive data of worth billions of dollars takes place in a year. Due to this it has become a hotspot for hackers.

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End-to-End encryption is a solution to this massive threat as it ensures that data is safe and sound. It conducts security audits and penetration tests which takes the security measures to an extra mile.

4. Fingerprinting device

Introduction of Fingerprinting devices adds another dimension in banking mobile apps. It obtains various sets of signals such as IP address, location, time of the day, device type, location, screen seize, browser etc.

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You can hire mobile application development firms to build an app which has fingerprinting feature or which are compatible with some fingerprinting devices.

5. Offer real-time text and email alerts

It is safe to assume someone using mobile banking on their smartphone has direct access to their email and/or text messages.

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By sending a quick, real-time email or text alert to notify a customer of account activity, they could easily prevent fraud.

For example, some mobile bank applications allow you to be notified if more than a customer-specified amount of money is spent.

This type of notification could easily let someone know if their information has been compromised, as they would likely be aware of such a large amount of money being spent from their account.

Read also: 3 Effective Ways to build your mobile app Security

6. The power of paperless banking

Advent of IT technology and Mobile apps have had massive impact on all the sectors. Banking is no exceptions; digitalization has transformed most of its processes.

With digitalization the banks can go completely paperless with most of its process including something as basic as opening a bank account and handling all the transactions online.

Using digital or online platforms assist in increasing efficiency and transparency as all the file are in digital forms and its access becomes quick and convenient. To implement all these the banking institute would require a mobile app solution provider which can provide them with enterprise mobility solution.

7. Utilize behavior analysis

There is specialized software on the market that will monitor and analyze the login location and activity and online account activity of consumers.

Thanks to this technology, your mobile banking app could flag abnormal behavior for further investigation.

Further investigation could be an email or text alert to the customer advising of suspicious activity, or a call from the bank further investigating the suspicious activity.

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8. Safe digitalized documentation

Another way by which you can increase security of mobile banking app is through Safe Digitalized Documentation. Setting up an electronic signature can help in several verticals like eCommerce, call centers, retail branches, etc.

This method helps in bringing a huge portion of documentation on mobile which enables financial organizations to provide customers with various benefits. And most importantly it avoids cases of fraud and thus increases the security.

9. Use secure access

By using secure connections via technologies like HTTPS, customer account information can be better secured between the browser and the website they are connected to.

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This technology will further protect customers against data theft and fraudulent logins.

Financial institutions often find themselves between a rock and a hard place – most customers want the convenience of mobile banking,

but with mobile banking comes an increased risk of fraud both for the bank and the customer.

Of course, the challenge is staying ahead of cyber criminals and continuously working to find ways to improve the security of mobile banking applications.

By incorporating new technologies and continuing to seek those that are upcoming, financial institutions can continue to improve the security of their mobile apps and ward off the unwanted visitors – such as hackers.

However, this is also a two-way street. In improving mobile bank application security, customers must also take their own precautions.

Financial institutions that offer mobile banking applications should continue to educate customers and encourage them regarding Internet security and things that could put them at an increased risk of fraudulent activity.

Conclusion

There is no doubt that mobile apps and online platforms have made the banking processes convenient for people. However, there is also a larger risk of hackers compromising the data resulting in huge chaos situation. So, the key is to implement these online security measures with utmost care.

The ways which we mentioned in this article can assist you at a great extent to combat all the shortcomings of conventional methods as well as to make the banking mobile apps safer.

So, your next step must involve contacting a mobile application development firm and enquiring about the cost of app development such that it includes all the above features.

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