Mobile banking - is it a stick up?

As mobile banking popularity soars, we see more warnings about the security of mobile banking. However, who is responsible for keeping your details safe - you or your bank?

We think it's both of you. The bank must uphold the highest standard of security and implement the appropriate safeguards to protect customer details. 

Already we see banks implementing a number of safety steps and we have noted a few below.

1. Sending SMS when a new payment recipient has been added to the account.
2. Set up overseas transaction alerts to instantly alert a customer when their card has been used overseas. 
3. Using SMS and voice to verify changes to account. 
4. Set up SMS alerts for weekly balance alerts, credit limit alerts and high and low balance alerts. 

These types of alerts notify customers to whether there has been any unexpected transactions from their account as well as helping customers manage their finances.

There has been some controversy over how secure an SMS is. Like any technology, there are a few weaknesses. However, this is why it is strongly recommended that banks use a number of safeguards rather than relying on only one step to protect details. For example, if a customer is setting up a payment for a new recipient this typically requires UK banking customers to verify through telephone verification as well as sending an SMS to the customer advising that a new payment has been set up on their account.

Customers also need to be responsible when it comes to protecting their own personal details. This includes:

1. Always logging out of the site when you are using mobile banking 
2. Never saving your username 
3. Keeping your password safe 
4. Never sharing any personal or private information with others 
5. Setting up SMS alerts for fraud 
6. Letting the bank know when you are travelling abroad 
7. Always ensuring you are logging in from a secure network

Mobile banking benefits are far reaching for both customers and the bank. Customers are able to bank anywhere at any time allowing them to manage their finances in real time and banks are able to cut down on routine transaction costs as well as deliver improved customer care and service by enabling proactive and real time alerts. However it is important that banks continue to develop safeguards to protect customers’ personal detail and money and customers also understand how they can help protect their accounts.

To find out more about how our mobile banking solutions can help you, please explore our Solution Planner.

For further information regarding HSL, visit us at:

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