One of the most fundamental services banks provide is keeping customers' hard earned cash safe.
With new innovations developing in the market with increasing speed, banks are struggling to keep up. Customers can now carry out banking activities from a variety of sources - branch, telephone, online, mobile - and this opens up security risks which banks must address.
Mobile banking is expected to grow to 1 billion users by 2017 but security remains a top concern for mobile bankers in the UK and this is impacting negatively on adoption rates. Previous research by KPMG found only 27% of people in the UK had used mobile banking in the previous 6 months compared to 52% worldwide. 66% were worried about their credit card information being captured by fraudsters while 62% were concerned that others may be able to access personal details.
Concerns over mobile banking technology have become so significant that regulators are now stepping in to ensure banks have the appropriate IT systems in place and that enough is being done to protect customers from security risks. This in turn should help assure consumers that their details and money are safe from fraud whilst using mobile banking.
This may create grumbles amongst banks though as development may be necessary to their IT infrastructure and further steps may need to be taken to protect customers. However, an infographic by Metaforic highlights improving security measures can increase adoption rates of mobile banking with 54% of non mobile banking users indicating that they would adopt mobile banking if there was evidence of more robust app security and 48% would adopt mobile banking if there were assurances that losses would be covered.
Other concerns raised by the FCA included risk of virus when downloading mobile banking apps and payment errors such as typing in the wrong account details or amount when transferring money to a person or company - this is particularly relevant when people can make payments to other accounts by simply using a telephone number. With screen sizes and keys being smaller, this is a very valid concern as the risk of human error is significant.
The good news is many UK banks are already offering to protect customers in the event of fraud within mobile banking and have additional security steps in place for mobile banking customers. Barclays has services such as secure log-in and Mobile PINsentry to protect the most vulnerable transactions within online banking. Nationwide validate customers during registration and all information is verified though VeriSign, which is a main global player for secure e-commerce.
However, it is not enough that banks have security steps in place. To fully protect customer accounts, it is important that not only banks are protecting customer accounts, but customers themselves are taking responsibility to protect themselves against security risks. Within the Metaforic infographic it was revealed that only 1 in 5 consumers had installed anti-virus software on their device, indicating that more needs to be done by customers themselves.
Many UK banks are now trying to teach customers on what steps can be taken to heighten security measures. For example, Barclays have a dedicated page on mobile banking security highlighting the steps they have taken to protect customers as well as advising customers on actions they can take to strengthen security. This includes an advice section on how customers can help protect their accounts and free security software for PC and mobiles.
Find out more about how customers and banks can improve security for mobile banking or how mobile is making a difference within banking and finance.
Concerns over mobile banking technology have become so significant that regulators are now stepping in to ensure banks have the appropriate IT systems in place and that enough is being done to protect customers from security risks. This in turn should help assure consumers that their details and money are safe from fraud whilst using mobile banking.
This may create grumbles amongst banks though as development may be necessary to their IT infrastructure and further steps may need to be taken to protect customers. However, an infographic by Metaforic highlights improving security measures can increase adoption rates of mobile banking with 54% of non mobile banking users indicating that they would adopt mobile banking if there was evidence of more robust app security and 48% would adopt mobile banking if there were assurances that losses would be covered.
Other concerns raised by the FCA included risk of virus when downloading mobile banking apps and payment errors such as typing in the wrong account details or amount when transferring money to a person or company - this is particularly relevant when people can make payments to other accounts by simply using a telephone number. With screen sizes and keys being smaller, this is a very valid concern as the risk of human error is significant.
The good news is many UK banks are already offering to protect customers in the event of fraud within mobile banking and have additional security steps in place for mobile banking customers. Barclays has services such as secure log-in and Mobile PINsentry to protect the most vulnerable transactions within online banking. Nationwide validate customers during registration and all information is verified though VeriSign, which is a main global player for secure e-commerce.
However, it is not enough that banks have security steps in place. To fully protect customer accounts, it is important that not only banks are protecting customer accounts, but customers themselves are taking responsibility to protect themselves against security risks. Within the Metaforic infographic it was revealed that only 1 in 5 consumers had installed anti-virus software on their device, indicating that more needs to be done by customers themselves.
Many UK banks are now trying to teach customers on what steps can be taken to heighten security measures. For example, Barclays have a dedicated page on mobile banking security highlighting the steps they have taken to protect customers as well as advising customers on actions they can take to strengthen security. This includes an advice section on how customers can help protect their accounts and free security software for PC and mobiles.
Find out more about how customers and banks can improve security for mobile banking or how mobile is making a difference within banking and finance.
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