When it comes to effectively managing your money, like checking balance, transferring funds, paying bills online and more, there is no better way than mobile banking available to us. It’s quicker and convenient, and it lets us do banking even when we are on the go!
But on the other hand, the adoption rate of mobile banking has not yet reached its highest level. The only reason is that many people still do not completely believe in mobile banking when it comes of security. As of a mobile banking research by Jumio, which is a online mobile payments and identity verification company, 67 percent of younger millennials, 58 percent of older millennials and Generation Xers, and 63 percent of baby boomers still have security-related doubts and concerns when they use digital banking channels, such as online banking portals and mobile apps. Of course, these doubts and concerns are not letting many people enjoy the actual benefits of mobile banking.
So, the problem related to the security of mobile apps exists. Mobile apps too have been exhibiting their vulnerabilities with several instances of fraud, IP infringement, and malware. These issues come out time after time and keep on deterring people to have full faith in the security of mobile banking apps.
Banking companies can convince those customers who haven’t built up their trust on banking apps only by ensuring the security of mobile banking apps. Here are the steps they can take.
1. Add Multi-factor Authentication And Make It Compulsory
Apps using single factor authentication verification have turned vulnerable. Hackers and attackers have developed ways to ditch this approach, which in result can cause huge financial loss to a person.
With multi-factor authentication, the security of banking apps is improved to a level where it can only be confirmed when a person deliberately passes PIN or OTP or the fingerprint to the app.
This adds an additional security feature which cannot be breached unless a person intentionally or mistakenly provides the information to the app.
2. Encourage The Use Of NFC-embedded SIM cards
Financial institutions putting their banking apps in the market can also push the thought that NFC-embedded SIM cards are a better choice for mobile banking transactions.
Although banks can’t force this security option on their consumers, they can suggest it as “highly recommended” for the security of banking apps. This sort of cards let customers securely download their card information into it. Using NFC-embedded SIM card will become common because many banks have already started to bring in the contact less transaction system in the market.
These cards will reduce the risk of credit card information being breached.
3. End-to-end Encryption
End-to-end encryption bolsters the security of banking apps. The approach protects data and system integrity residing at the heart of every financial and KYC transaction. When the end-to-end encryption coupled with vulnerability scans, regular security audits, and penetration tests, it ensures compliance with industry-wide security practices & standards.
4. Fingerprinting Device
Almost all manufacturers are now introducing smartphones with fingerprint access, an advanced approach allowing only the actual owner of the device accessing it. This feature can add an additional security layer to mobile banking apps. The same layer can be the best bio-metric authentication, which is very personal to an individual user.
5. Offer Real-time Text and Email Alerts
The security of a mobile banking app improves further if it sends real-time text and email alerts on every debit and credit transaction. This keeps people intimated for every activities happening in their bank accounts. Many banking apps have the feature that allows customers to get notified if more than the specified amount it spent.
Integrate this sort of feature as an additional feature to improve the security of mobile banking apps.
6. Utilize Behavior Analysis
Apps can use behavior analysis to monitor and analyze the login location and activities on logged in account. If behavior and location mismatch with the actual account holder, the app can flag the behavior of a customer abnormal. The account can be blocked till user provides information that only actual account holder should own.
7. Secure From Reverse Engineering
Many apps have been reversed engineered and so can be banking apps too. The Reverse engineering method can also easily be applied to create a fake banking app and launch that in the store to illegally collect accounts’ information.
Hackers do reverse engineering by finding a problem in an app and then release it with the same look & feel to exploit those customers who aren’t tech-savvy.
Developers can avoid reverse engineering by encrypting app source code and using obfuscation instrument for comprehensive app testing as well and wisely managing keys.
8. Protecting The App From Malicious Apps Spying On Keystrokes
Banking institutions cannot control customers from downloading apps containing a malware infection. But infected apps can even record the keystrokes and then send the data to hackers. Developers must consider about this sort of possibility and protect their apps for any such activity.