Mobile banking capitalized on the successes of online banking by preserving the immediacy of the transaction for the user. There is also the convenience factor for mobile users, insofar as they can access their bank account anytime and anywhere, as long as there is cellular coverage. As well as levelling up the convenience factor. Mobile banking apps have also improved the security of remote banking.
Banking infrastructure has evolved to be more mobile-friendly and make use of new technologies like AI and Biometrics. The core focus is on passwords and how to let the authentic user in a while keeping hackers out!
In recent times, the challenges for the FinTech sector has been the proliferation of not just mobiles but other IoT devices with internet access.
Users realizing they can access secure online accounts with voice recognition revealed an apparent security vulnerability. For example, a smart speaker used to access a bank account. The user could only get access by reciting their PIN aloud, and by doing so presented an obvious flaw, i.e. someone else within earshot could find out the user’s password.
The challenge for the Internet of Things (IoT) hardware and software providers have been to replace the voice activation login process with tighter measures with the use of biometrics, i.e. facial recognition or fingerprint technology.
Enhanced Security Using Biometrics
Mobile phones are more prevalent with more competitors, so the improvements in phone hardware and software are everchanging. The fast turnaround of updates improves the use of cryptography to protect data as well as biometric authentication systems. Mobile phone cameras are not just for users to take pretty photos. They are also used for login security using a photo of your face for login authentication. Facial recognition and fingerprint activation are commonly used log in authentication measures for mobile banking apps.
What biometric authentication really is, fascinates online security analysts, and app developers. For everyday mobile users, the interest is limited to how quickly they can use it to access their secure banking apps from their mobile phone.
Tighter Bank Protocols
The banks also adopt enhanced safety protocols for mobile banking, such as encryption, tightened identity verification, and storage of mobile banking data in a secure data centre. For example, if your phone is stolen, someone else will find it difficult to access your bank account. The bank will deploy safeguard measures like two-factor authentication.
Safe, Streamlined, Funds Transfer
Today’s mobile banking apps can fulfil several transaction methods in a manner that is both timely and secure. One example is that of real-time settlements made through the Faster Payment System (FPS), which can be achieved from bank-to-bank or from person to person. Some apps can also safely assist in banking transactions that require a handwritten signature, making processing and approval even faster.
24/7 Secure Access
Ultimately, mobile banking apps proffer the twin benefits of round-the-clock security and round-the-clock user convenience. Mobile users are assured of a means to complete their everyday transactions without interruption to their time, mobility, and personal circumstance. The app infrastructure that promises seamless delivery of service on a 24/7-time frame also promises optimum security and protection to its customers.
Mobile banking apps will continue to improve their user functionality, intuitiveness and most importantly, security. New entrants in the mobile banking app sector will challenge and use technology disruption to grab market share. Users need and want more choice. Therefore, all banks need to stay at the forefront of mobile banking technology to remain relevant, particularly with the younger generations. Other 4th and 5th industrial revolution technologies such as Blockchain, AI and machine learning will play a more profound role in FinTech. However, users will be less interested in them pe sec rather their interest lies in what they can do to make their experience better.