Challenges that Mobile Banking Poses

Justin Smith, CIOReview APAC | Friday, May 14, 2021

As companies broaden their mobile payment capabilities, it is critical to ensure the security of both company and customer payment data.

FREMONT, CA: The use of mobile banking is increasingly growing around the world. There were 26 percent more mobile banking app sessions in the first half of 2020 than in the first half of 2019. The number of people practicing mobile banking has exploded in comparison to only a few years ago. Although the rapid growth of mobile banking has provided financial institutions with opportunities, it has also created challenges.

The use of mobile phones, including mobile banking apps, poses major security risks. As companies broaden their mobile payment capabilities, it is critical to ensure the security of both company and customer payment data. With the continued growth of mobile and digital banking following the pandemic, banks must work to create a seamless and stable ecosystem for the future. Customers' perceptions toward mobile banking are shifting, and companies must adapt as well. Companies that fail to recognize this shift will be left behind by their rivals, while those that do must ensure that proper security measures are in place to guard their customers' data.

How to Gain from The Benefits While Evading Security Pitfalls

Mobile banking provides unparalleled convenience, speed, and accessibility to consumers–no more closures on bank holidays, inscrutable statements, or tiresome queues. It is no surprise that people are flocking to mobile payments and banking; the advantages are numerous. Although companies should follow their customers in making mobile banking and payments as simple as possible, they must also be aware of mobile banking posing security risks. Hackers can gain access to 76 percent of mobile banking applications, and with everyone from app developers to banks themselves capable of leaving vulnerabilities, protection can be compromised at any point.

Mobile banking users place a high value on security and reliability. After a bad experience, a whopping 62 percent of mobile banking users say they will switch providers. With increased penetration and scalability-related security challenges, businesses must be flexible enough to accept and scale their customer base while maintaining a smooth and stable operation. Those that do not comply can lose customers.

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