Building the business case for mobile banking security - IoT global network

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Building the business case for mobile banking security

January 19, 2017

Posted by: Avadhoot Patil

As part of the smartphone and smart device revolution, mobile banking has become a popular method for people to manage their finances. The benefits of mobile banking are two-fold: users can bank in a more convenient manner and banks can use smartphones as a way to better engage with their customers.

Recent research by RateWatch has shown that 81% of the financial institutions surveyed are currently offering mobile banking services, which is a clear indicator of its popularity. With this in mind, it should be expected that customers will be able to conduct their banking activities on a wider range of mobile IoT-connected devices in the near future.

However, the same survey also showed that 36% of consumers are still not using mobile banking due to the perceived security risks. This, allied with an ever-evolving cyber threat landscape and the rapidly expanding Internet of Things, means that finding a way of making mobile banking more secure is crucial, says Olivier Thirion de Briel – Global Solutions Marketing director, HID Global.

Why mobile banking security is essential

Banks have worked hard to deploy effective security frameworks for traditional online banking. However, mobile banking presents its own unique challenges, including growing malware threats that specifically target the mobile channel. As a result, any attempt to leverage existing online banking infrastructure and tools will result in a much higher risk profile, unless steps are taken to adopt mobile-centric security.

There are several ways in which mobile banking presents its own unique challenges:

In order to securely deliver mobile banking and payment services, and to increase user confidence in the safety of banking on their mobile devices, banks must provide multi-layered security. Their solutions must address the potential challenges that can occur throughout the transaction.

This includes challenges at both the front end (consumer devices), the back end (banking systems that recognise and facilitate legitimate user requests through mobile devices), as well as the channel connecting the front and back ends.

Olivier Thirion de Briel of HID Global

Bringing this peace of mind to users helps to drive further adoption of mobile banking, thereby bringing added revenue and profits while improving the user experience. At the same time, banks can safeguard themselves from the severe reputational impact that a data breach can have.

What a mobile banking security solution should offer

In order to ensure adequate mobile banking security measures, without compromising on the all-important user convenience, banks should look for certain key capabilities when choosing a solution:

Mobile banking – an essential consumer banking method

Mobile banking is here to stay and will only grow in popularity in the coming months and years, With this growth comes renewed security concerns, including the need to protect apps against the spectre of an expanding threat landscape. It is crucial for banks to focus on developing and implementing mobile security strategies to minimise exposure of customer data, financial loss as well as the reputational damage of a severe data breach.

The most effective solution for banks lies in finding a solution that provides watertight security while maintaining a positive user experience. Convenience is paramount for today’s consumers, so striking the right balance between security and experience and providing a seamless experience should be given close consideration if a bank wants to maintain its competitive advantage.

The author of this blog is Olivier Thirion de Briel – Global Solutions Marketing director – Identity and Access Management Solutions with HID Global.

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