What Mobile Banking Experts Want You to Know. Mobile banking has been around for a couple of years but only gained traction when COVID-19 hit. The restrictions and disruptions caused by the pandemic have enabled people to use these banking apps because of their convenience: you can check your balance, transfer money, pay bills, and even apply for a credit card, all in the comforts of your home.
While many use mobile banking in their daily lives to quickly manage their finances, there are still numerous things to understand about them. In this article, we turn to experts to grasp what they want us to know about mobile banking.
Why Should You Use Mobile Banking?
More banks are now transitioning to accept the rapid changes in the industry, and even some are leaning towards sustainability by incorporating carbon accounting tools in their operations. With many people using their mobile phones for necessities, it is no surprise that banking apps have increased their growth over the years. Mobile banking proves beneficial, especially for those always on the go.
The use of mobile apps has increased rapidly, according to Rob Morgan, senior vice president of innovation strategy at the American Bankers Association. “Digital banking was on the rise long before COVID-19, but the growth in mobile app use accelerated as the pandemic made in-person banking more difficult,” he says. The poll reveals that many people who use today’s sophisticated banking apps rapidly choose mobile as their preferred banking option. Here are some of the perks of using online banking:
- They provide 24/7 access compared to a bank branch. Thus, anyone who uses these banking apps can access their account and do instant banking services anytime, helping you save time.
- They provide remote banking, meaning you can conduct various kinds of transactions anywhere as long as you have a stable internet connection.
- You can monitor all your bank accounts conveniently, making it easier to know if there are any fraudulent transactions.
- They enable utility bill payments, tax and insurance payments, mobile phone recharge, insurance policy purchases, and a wide range of loan payment options.
While the benefits of using mobile banking are apparent, you should also consider that not all banking apps work seamlessly. And even the best ones inevitably encounter outages from time to time.
A significant disadvantage of mobile banking is that it is internet reliant and is only accessible to those well-versed in the constantly evolving technologies. These points can prove challenging to those in rural areas and those who cannot afford an internet-based smartphone. Another thing to consider is that mobile banking is prone to phishing scams. Since you are storing all your account details and other sensitive banking information on your phone, this could pave the way for hackers to access your bank account for fraudulent transactions, which leads us to our second point.
Is Mobile Banking Safe?
Mobile banking is secure, according to cybersecurity experts, although they advise customers to take some security measures.
According to Paul Benda, senior vice president for operational risk and cybersecurity at the American Bankers Association, “downloading the mobile app from a secure shop is just as safe as visiting a bank office.” He said visiting your bank’s website is the safest place to download a mobile banking app since they deploy cutting-edge, incredibly secure encryption technology.
Still, there is no denying that mobile banking apps are vulnerable. The FBI reminds users to watch out for these cyberattacks: App-based banking Trojans and Fake banking apps.
App-based banking Trojans are the hidden “sideload” in unrelated apps. They contain malware that remains dormant until users open their bank’s login page.
According to Teresa Walsh, global head of intelligence at the Financial Services Information Sharing and Analysis Center (FS-ISAC), “a user can download malware in a variety of ways, such as SMS (short message service, or text) with a malicious hyperlink.” She added, “the criminal underground market sells this kind of virus.”
On the other hand, fake banking apps trick users into inputting their banking credentials for fraudulent activities. The FBI reported that this attack is one of the fastest growing sectors of smartphone-based fraud.
But here’s the good news: you can protect yourself from these mobile banking frauds by ensuring you follow the new security features of mobile banking, which includes:
Two-factor or Multi-Factor Authentication
Bank users must provide at least two pieces of authenticating information when using two-factor or multi-factor authentication to enter into their accounts. Banks typically deliver a text message with a confirmation number to their cell phone along with a password or PIN.
Although it dramatically improves security, two-factor authentication isn’t foolproof, according to Korinchak. He warns that someone might access the code, gaining them a pass to your phone or intercepting SMS traffic.
Real-Time Text and Email Alerts
Anyone using mobile banking on a mobile browser is probably also directly connected to their email and text messaging. This process could quickly stop fraud, social engineering, or an identity theft issue by delivering a quick, real-time email or SMS notice to a consumer informing them of account activity.
For instance, you can receive notifications on your mobile devices from various mobile bank applications if more money than the customer-specified threshold is spent.
Since they would probably be aware of such a sizable sum of money being taken from their account, this security feature may immediately warn someone if sensitive user information has been compromised.
However, if you’re still worried about using mobile banking, Donald Korinchak of CyberExperts.com states that security threats are everywhere. Even in bank branches, you are vulnerable to these threats as some employees resort to insider threats, like stealing your bank information.
That’s why banks spend billions on their physical branches or mobile banking to improve payment protection and secure their operations and customers from possible theft and fraud. Now it’s up to the customers to do their part to ensure they follow safe practices.
You can benefit from mobile banking in various ways, some of which fundamentally redefine the function of a bank. Consumers now have more influence over how they handle their money thanks to 24-hour access to their accounts and the convenience of one-button transactions, reducing the frequency of bank trips.
Still, while we love the convenience that mobile banking offers, we should also be aware of how mobile banking directly affects our day-to-day lives.