Mobile banking's day in the Sun

Mobile banking is having its day in the Sun and the FCA has taken notice. The spike in mobile’s popularity is down to convenient banking on the go. One in five adults already makes payments via their phone. On top of that, the Payments Council predicts that mobiles will be used for 1.5 billion transactions by 2022. Sounds like the next big thing but what of the risks?

In a recent report, the FCA identifies payments made in error, malware and fraud as potential pitfalls for mobile banking. Despite these challenges, banks play a crucial role to ensure consumers are safe and technology is accessible. Part of it is an education piece – password protecting phones or taking care when keying in data on fiddly touchscreens. The other side of it is having secure technology in place.

Mobile banking services and P2P payments are now a must-have for financial institutions, whether they allow customers to view a balance or make a transaction. But any new payment method risks becoming a target for fraud. 31% of UK consumers are already reluctant to download a mobile banking app due to security concerns. Banks must have watertight mobile banking systems are so they can put concerns at ease and win customer trust.

Banks should also invest resources into creating apps that are user-friendly and readily accessible on a variety of operating systems is a must. A mobile version of the online site just won’t cut the mustard and will increase the risk of user errors. As security is also a high priority for consumers, banks must make sure they have sophisticated systems in place to keep malware and fraudsters at bay, without impacting the customer experience. Failure to protect mobile banking consumers could otherwise be a disaster waiting to happen.