There is little doubt that mobile apps have made the banking process more convenient for people. According to the FBI, United States financial providers estimate more than 75% of Americans used some form of mobile banking in 2019. And since the beginning of 2020, there has been a 50% surge in mobile banking. With this increase in mobile usage, it is natural to anticipate an increase in the exploitation of mobile platforms.
Who is responsible for ensuring the safety of financial information? The answer, of course, is everyone. But it starts with the financial institution.
Customers need to be educated on the security features offered by their bank, such as using strong passwords and enabling security alerts. They need to be vigilant about utilizing these tools; however, most are almost completely dependent on their bank, as well as the device manufacturer and carrier, to keep them safe. Financial institutions need to take responsibility to ensure they’re also increasing their investments in the latest-and-greatest mobile app security technology to protect their users.
Financial institutions looking to protect sensitive information will need to use a few resources for mobile banking security. Banks need to focus on encryption, more comprehensive authentication, and wireless transport layer security. They need to limit access to mobile devices for employees and ensure that a mobile banking app is safe to use. With a secure mobile banking app, banks will be able to ensure security for themselves and their customers.
There are many other existing and emerging tools that will also help secure financial data.
PINs and passwords are no longer enough. Multi-factor authentication is the best way to protect your data. It is now the standard for bank security. This can include individual, biometric identifying features (fingerprints and facial recognition), as well as a combination of images, security questions and push notifications that can be sent to the user. At a minimum, two-factor authentication should be used but it is not foolproof. Many users are using a combination of something “they have” and something “they know” to access their accounts, such as a push notification code and a password. Another valuable piece to add to the authentication process should be something “they are”, such as a fingerprint or face recognition. Having this step adds another layer of security that is difficult to get around.
A fraud monitoring solution is an important component in protecting against mobile and online fraud. Mobile Deposit verification, card alerts and suspicious activity monitoring are tools the bank can utilize to detect fraud and prevent it. Ideally, this monitoring will be done without inconveniencing the user. Tools that have the ability to access multiple sources of data across various channels will allow for a more robust risk assessment and a more secure banking experience.
Voice Recognition and Identification
Users are becoming more comfortable with artificial intelligence-based voice assistants, like Siri and Alexa. You can use voice requests to access your apps without opening your devices. This is not widely available yet, but as the security and accuracy of voice recognition get better, banks will be able to utilize this as an additional security layer in their mobile banking application.
As users become more mobile, the need for convenient, secure bank access from any location is a requirement. By utilizing the many tools available, you can keep your customers safe while still providing the convenience and access that comes with mobile banking.
About Automated Systems, Inc.
Since 1981, Automated Systems, Inc. has been a leader in providing innovative core banking, digital banking, and data processing solutions to community banks nationwide. An array of integrated applications provide partnered banks with tailored, cost-effective, competitive choices. ASI delivers industry-leading technology backed by unparalleled in-house conversion, training and support teams; paving the way for progressive, top-notch customer service. ASI corporate headquarters are located at 1201 Libra Drive, Lincoln, NE 68512, 1.800.279.7312. For more information about banking solutions from ASI, visit www.asiweb.com.
About Insite Data Services
IDS data application hosting services combines secure and cost-effective core banking applications, enterprise-class servers and storage, and proven virtualization technology. IDS hosts all of the bank’s servers in secure data centers that use state of the art security systems including identity verification and biometric scanning. Insite Data Services also offers IDS On-Time, a full-service solution dedicated to back-office bank processing. These operations experts allow partnered banks to focus on their most important asset, their customers. For more information visit www.insitedataservices.com.