In many ways, financial technology solutions have made our lives easier. You would go to a bank office and wait in line to conduct basic operations like paying bills, transferring money, or depositing your money a decade ago. Complex transactions, such as investing money or signing insurance contracts, might take weeks or months to complete. All of this is now available with a single tap of your finger on your preferred FinTech app. Indeed, as a pandemic boosted contactless payments and smartphone usage, mobile banking solutions transformed from a long-ignored tool into a game-changing advantage for the banking industry. According to the data, new mobile banking registrations increased by 200% in 2020, while mobile banking traffic increased by 85%. The number of mobile-only banks (or neobanks) that garnered $3.6 billion in venture capital investments in 2020 demonstrates the success of mobile banking. In light of this, developing a mobile banking app is a wise move for businesses looking to stay competitive and expand their business.
However, with this expansion comes new security risks of mobile banking apps such as mobile malware, third-party apps, insecure Wi-Fi networks, and dangerous consumer behaviour. And regardless of whether a bank utilises a proprietary or third-party mobile banking application, the bank is responsible for the risks.
What is a Mobile Banking App?
A banking app is a mobile application that lets you view your bank account information and conduct transactions from your phone, tablet, or other mobile devices. Depending on the bank, you’ll be able to accomplish a variety of things using your banking app.
Most banking applications let you monitor your current balance and transaction history, as well as the deposit, and checks up to a certain dollar amount. You may also begin transfers to other bank accounts, schedule payments or pay bills, conduct person-to-person payments, and find ATMs that are free to use.
Is Mobile Banking Safe?
Mobile banking is generally safer than most other internet activities. This is partly because banks are compelled to maintain high levels of security, and partly because people are more cautious when their money is at stake. However, hackers will typically try to infect your devices with malware and steal financial information by exploiting weak passwords and weaknesses in public Wi-Fi.
Surprisingly, the majority of mobile banking assaults are carried out through social engineering, in which clients are deceived into giving hackers, fraudsters, and other cybercriminals their usernames and passwords. Social engineering tactics include phone calls, harmful web links, phishing websites, and more complex (and less prevalent) assaults such as phony banking applications. It’s extremely easier to fall for a scam than you may think, but being aware is your greatest defence.
Security Risks of Mobile Banking
The mobile threat landscape is constantly changing, and both institutions and consumers are concerned about the dangers. Among today’s developing worries are the following are security risks of mobile banking.
Mobile Malware – Trojans, malware, and rootkits are shifting from traditional internet banking to the mobile market. According to researchers, mobile malware creation is increasing in lockstep with market expansion.
Third-Party Apps – Consumers adore their smartphone and tablet apps, yet many of them are developed by third parties with dubious security procedures. Worse, the apps may have been built by con artists and include malware.
Unsecured Wi-Fi – While public Wi-Fi may allow you to save money on your monthly mobile phone usage, it also makes it much easier for hackers to gain access to your phone and monitor your activities. They can also hack into your phone if you’re using cellular data, but it’s considerably more difficult. If you need to access your financial accounts in public, use cellular data instead, or better yet, wait until you’re on a secure Wi-Fi network.
User Behaviour – Customers are prone to installing third-party apps, connecting to unprotected wireless networks, opening and clicking links in SMS text messages and e-mails, and misplacing their mobile devices. Mobile usage is producing a slew of vulnerabilities, and fraudsters are ready to exploit them.
Unsecured Mobile Devices – It is an uncommon occurrence for customers to install a mobile antivirus on their phones in anticipation of a probable cyber assault. Because the average smartphone or tablet user does not install security software on their device, the security provided is only a fraction of what is accessible on a laptop or a desktop. Smartphones are prone to security assaults as a result of this aspect.
Mobile Banking App Security
Mobile banking is the most significant revolution in the banking business to date. Millions of people use a variety of mobile devices to conduct banking throughout the world, and millions more are likely to do so in the coming years. Following are the security of mobile banking apps that should be provided with the development.
The Security Base
This is the phase that sets mobile banking application development apart from the others. When developing mobile banking software, keep in mind that you’ll be dealing with sensitive user data.
As a result, this is the security base you should be aware of before beginning development.
Secure Password
Every password must be hashed before being saved in a database.
Auto Logout Option
Users should be automatically logged out of the system, both on the front-end and back-end if they aren’t active in the app for more than 15 minutes.
Data Privacy
Users tokens, passwords, and other sensitive information should be accessible only to those who design banking apps. All data must be saved on secure platforms such as 1Password, Okta, and others.
Security Certificates
If it’s a web app, make sure it has an SSL Certificate, and if it’s a mobile app, make sure it has SSL Pinning. These documents ensure that all information sent between the Web server and the browser is kept private and secure.
Secure Authentication
Install and use fingerprint security on Android devices, and Apple Keychain on iOS devices.
Secure Card info
Use VGS (Very Good Security) to show consumer credit card information.
Conclusion
Mobile banking apps are getting increasingly popular. These solutions not only provide customers with more personalised options, but they also try to create a more sophisticated experience and meet the needs of certain users. In contrast to other types of apps, mobile banking development demands a heavy focus on data security. As a consequence, a step for mobile banking app security should be added in the process. It affects the features you add and brings additional challenges. The development of a mobile banking app is a big step forward in satisfying customer needs. People do not need to wait in long lines at banks. Instead, users just open the app and complete their tasks in a couple of minutes.
Author’s Bio – Patel Nasrullah Co-founder Peerbits, one of the leading Top web application development company USA, in 2011. He devotes his time in inspiring young leaders to take the leap of faith. With the experience of 10 years in Web and App development, he now gives full attention to the enterprise by offering mobility solutions about the strategic planning and execution.
