Will mobile banking security concerns really hinder adoption?

One of the most newsworthy items surrounding mobile banking is security concerns. But do customers really care? Are security concerns actually making people not use mobile banking?

Let's find out.

Mobile banking is now reaching mainstream in most countries with developing countries seeing some of the best innovations being developed. 

Sales for smartphones also continue to rise creating new mobile banking users in the developing world. We come to expect banks to offer mobile banking services around the globe, and if you don't, you run the risk of turning away customers.

With the rise of mobile banking users, concerns around security are heightening according to a survey by Federal Reserve Board. A list of some of their key security findings are noted below.

• Customers rated security of SMS for mobile banking at 38% in 2011 but this has dropped to 34% in 2012.
• Customers also rated mobile browser security at 42% where a year earlier they rated it at 38%.
• Number of customers rating mobile apps as safe also declined from 40% to 35%.
• More customers are unsure as to whether SMS for mobile banking, mobile browsers and apps are safe or not.
• Mobile phone users who use their mobile for banking are more likely to consider mobile banking safe and are likely to know whether they consider it secure or not.
• Overall mobile banking safety (keeping personal information safe) has not witnessed much change.

These findings indicate that as customers use mobile banking more, security concerns are rising and there is a gap in terms of the knowledge of mobile banking security with many stating they ‘don’t know’ if it is safe or not.

Another survey by Jumio Inc "The 2013 Consumer Insights study" found some very revealing insights into whether customers will actually not use mobile banking due to security concerns.

They found many had been subject to online or mobile fraud (a quarter) and although 83% were concerned with identify theft, they would choose the convenience of mobile banking over security. Customers would continue to use their mobile for carrying out banking activities and expect to use them even more in the future.

However, although security concerns appear to not be hindering mobile banking adoption at the moment, it is important that banks address concerns and educate customers as to how they can protect their details and accounts. This will ensure that mobile banking continues to grow and security concerns do not hinder adoption in the future.

To learn ways you as a customer can enhance mobile banking security, or banks looking at ways to improve safeguards in place for mobile banking, please read Mobile banking - is it a stick up?

Alternatively, please contact us for more information.

For further information regarding HSL Mobile, visit us at:

http://www.hslmobile.com

follow us on LinkedIn, Twitter @hslmobile, Facebook or Google+

or call us on +44 (0)1506 605 260

or email us at sales@hslmobile.com

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:

http://www.hslmobile.com

follow us on LinkedIn, Twitter @hslmobile, Facebook or Google+

or call us on +44 (0)1506 605 260

or email us at sales@hslmobile.com