Mobile banking is not exactly new anymore, but it is the target of heightened security scrutiny. After all, mobile devices get lost and stolen all the time. It's one thing to lose the money in your wallet and your easily cancelled credit cards. It's another thing entirely to lose the device that is a gateway to your banking and investment accounts.
Physical access to your smartphone is not even the entire problem. Anti-malware software is far less prevalent on mobile devices than it is on desktops and laptops.
There's concern in some quarters that the industry is not quite ready for mobile banking. Yet, mobile banking proponents argue that, between instant push notifications and geolocation tracking, mobile banking allows for customers to monitor fraud in real time alongside their banking institutions.
Combined with newer mobile devices that often are equipped with the latest in biometric and encryption technologies, many of our smartphones may well be more secure than our desktop or laptop computers.
[Bank Systems & Technology writes its final chapter]
Recent developments are further strengthening the arguments in favor of mobile banking. Integrated biometrics and specialized mobile banking apps are working in tandem to bring two major benefits to financial institutions and their customers alike:
- Improved security, and
- Improved self-help features so that customers don't have to call, email, or tweet their bank's customer care representatives (saving on customer service costs)
Consequently, the latest mobile banking advances allow customers to better secure their money – and even better save and manage their money – in cool, engaging ways. Little wonder, then, that banks are hopping aboard the mobile banking bandwagon – many even offering to alleviate their FUD-stricken customers' fear with the promise of total coverage of mobile fraud losses.
On the following pages, you'll see four of the hottest security developments in mobile banking. Click through our gallery of mobile banking security ideas, and decide for yourself how you'd rather conduct your electronic banking – on a computer, or on a smartphone.
Joe Stanganelli is founder and principal of Beacon Hill Law, a Boston-based general practice law firm. His expertise on legal topics has been sought for several major publications, including US News and World Report and Personal Real Estate Investor Magazine. Joe is also ... View Full Bio