The mobile universe is growing in size. Five years ago, there were 3.6 million smartphone users; currently, that number has more than quadrupled, and it is predicted to reach 7.5 million by 2026. Banks, like other businesses, are putting mobile advancements to use. Simultaneously, banking applications capture, store and send massive amounts of sensitive financial data.
Over the next five years, India is expected to have the greatest rise in digital-banking adoption, with a 21% increase in the number of persons holding online-only bank accounts. This means that by 2025, we expect somewhat less than 400 million Indian individuals to have neobank accounts.
However, the real deal now is how can developers minimize dangers while developing FinTech mobile banking applications? Let’s find out precisely everything around that in this article. But before we get into the intricacies, let us understand every aspect step-by-step
What is Mobile Banking: A History?
Prior to the launch and activation of mobile web services in 1999, mobile banking was done largely by text or SMS; this was referred to as SMS banking. European banks were pioneers in mobile banking service providers, utilizing the mobile web via WAP technology.
Prior to 2010, the most popular mobile banking solutions were SMS banking and mobile web. Mobile banking applications/apps began to evolve with the introduction of smartphones running iOS or Android operating systems. Clients were able to download banking apps with more sophisticated UI and enhanced transactional capabilities onto their cellphones.
Mobile banking is on the increase right now, as predicted in past years. Mobile banking solutions provide faster, more convenient and personalized services, which is why a rising number of businesses are considering creating mobile banking apps. However, the frequency of data breaches and security concerns is rising, thus safety and data protection should be a top focus in mobile banking app development.
Why Does Mobile Banking Require an App?
The accurate counter answer is straightforward- WHY NOT?
We all live in a digital age when everything is literally at our fingertips. All you need is a smartphone to order a cab, buy groceries, or book a hotel room. With all of the user-friendly applications available on the market, users rapidly become accustomed to the joy of saving time and money. Who needs paper bills when you can access all of your financial information and pay your payments from the comfort of your own home while also preserving a tree? If a user has a query, they no longer need to phone the banker; they can simply put it into the chatbox and receive a fast response.
Here are some additional benefits
- Mobile banking lowers the bank’s costs by eliminating the need for paper, bill distribution, several workers and the operation of branches.
- Customers that use mobile devices are thought to be more engaged. They stay with their bank for a longer period of time, do more transactions and utilize more bank products.
- When compared to accessing a bank account online via internet banking, mobile apps often give a higher level of protection.
- Using mobile banking apps improves the customer experience by giving services 24 hours a day, whether it’s tracking their costs, making rapid payments, or obtaining help from chatbots powered by AI.
- Expanding from regional to national – banks can increase their client base without constructing additional branches, which would incur considerable costs.
- Metrics based on app user activity can be gathered for personalization and service enhancements.
Having understood that, let us now understand why is it necessary to secure your banking application, after all.
How to Secure Your Banking app?
Below are some crucial points you might have to consider when it comes to securing your banking app
Download a trusted banking app from the website of your bank
Many banks’ websites include links to app stores to assist you to find the correct app. “Your bank should have information available on what sort of mobile app they use, what features are on it, and what you need to use it,” Walsh of FS-ISAC adds. “Then, utilize a trusted app store, paying close attention to the app’s owner/developer and whether there are additional apps with the same name.”
Confused? Check with your bank first, but never download an app from an open forum.
Ascertain that your bank employs two-factor or multi-factor authentication
Customers who use two-factor authentication must use not just a password or PIN to log in to their account, but also a second means to authenticate their identity, such as replicating a code provided through text message to their mobile phone.
Two-factor authentication, according to Korinchak, substantially improves security but isn’t completely safe.
“Someone may acquire access to your phone or intercept SMS traffic to obtain the code,” Korinchak warns.
Avoid using public wi-fi
When you connect to a public wi-fi hotspot, you may see a warning that you are not on a secure network and that others may be watching your online activities. That is a compelling argument not to undertake any financial transactions via a public network. Instead, utilize your cellphone network or your home wi-fi to better safeguard your personal information.
Make sure your password is strong
Using a password that comprises random upper-and lower-case characters, numbers and symbols are one of the greatest methods to secure oneself. Don’t rely on your browser to remember it for you; instead, use a reliable password manager.
Korinchak explains, “Reputable password managers are constructed in a way that decreases risk to the user and is extremely protected against possible attackers. Password management software is recommended by the majority of cyber security professionals.”
Set up email, SMS or bank app notifications
This prompt warning assists the customer in detecting potentially fraudulent conduct, which can then be handled with your bank in a timely way.
Practice being alert to phishing/smishing
Fraudsters employ phishing emails to trick receivers into disclosing personal information, whereas smishing scammers use SMS messages as bait.
“Users should be familiar with their banking program in order to notice strange inquiries or pop-ups that appear somewhat different from the standard features,” Walsh advises.
The Bottom Line
Banks are doing everything they can to improve mobile banking app security, but users must also take safeguards.