In the age of digitisation, having a mobile banking application on a smartphone is expected. It offers a fast and easy way to make different financial transactions efficiently. However, even though mobile banking apps are pretty common, it is still not widely used because of trust issues. The trust issue is further strengthened with news of hacking and fraud. The only way to convince more people to trust mobile banking apps is by making them safe, which is primarily the banks’ responsibility. Here are a few ways banks can make mobile banking apps safer.
1. Multi-Factor Authentication
Passwords can be compromised; therefore, it is vital to move beyond one password. Multi-factor authentication, also known as two-factor authentication, provides users with an added layer of security. When a password is entered correctly, the two-factor authentication feature sends a one-time password to the user. It is only after entering the one-time password a transaction can take place.
For example, if you want to buy the tickets of Lottery Sambad by using a mobile banking app, you will first have to enter the password. After that, you further need to enter the one-time password. After completing the second step, one can make the actual financial transaction.
2. End-to-end Encryption
Having end-to-end encryption is a must for any mobile banking app. With sensitive information like payment details, launching a mobile banking app without end-to-end encryption is a big no. With end-to-end encryption, one can successfully fight cybersecurity threats to make financial transactions like transferring the winning money of the Kerala State Lottery from one bank account to another.
3. Real-Time Alerts
Just because someone has entered the correct password along with a one-time password does not always mean that the person is the rightful owner of the account who is making the transaction. Sometimes, it is possible to lay hands on such information by stealing a device.
The banks should provide real-time email and text alerts to fight this risk. The banks should notify the customer about their account activity with a simple alert. This handy feature can alone fight fraud and identity theft issues.
4. Behavior Analysis
There is numerous software available that allows you to engage in behavior analysis. Behavior analysis makes it possible to identify abnormal behavior, like an entirely new user location. Such information can help the bank alert customers about suspicious activity. Behavior tracking should include movements and touches, activity logs, apps and gadgets, and user actions.
5. KYC Implementation
Know Your Customers or KYC verified the users remotely and does not take more than a minute. A rigid KYC form should house the following verification: biometric identity verification, document verification and consent verification. Consent verification is crucial as it helps users set transaction limits. If a bank account is ever compromised, consent verification can help the users from losing a large sum of money.
In addition, the banks should also educate the users about the basic hygiene of using a banking app. Here is a list of a few things users should practice to use mobile banking apps safely.
1. Avoid Using Public WI-Fi
An open or public Wi-Fi has many security loopholes that compromise the users’ sensitive information. Therefore, when accessing a mobile banking app, the users should be encouraged to either use their private WI-Fi network or mobile network.
2. Log Out
Once the activity in the mobile app is completed, it is crucial to log out. The developers can also work towards building a mobile banking app that automatically logs out after a specific period.
3. Do Not Store Banking Data Casually
Keeping information related to the bank on the phone or even in a notebook casually should be avoided. The auto-fill option, which is handy most of the time, should be avoided when using a mobile bank app.
4. Do Not Share Passwords
Lastly, one should never share their password with anyone. The banks should also inform the users that bank representatives never ask for any passwords from the users.
The banks should be mindful of the safety features of mobile banking apps. In addition, users should also behave responsibly while using a mobile banking app. When both stakeholders work together, it is possible to make mobile apps safe, secure and convenient.