Mobile Banking Security - Is Mobile Banking a Secure Way to Take Care of Business?

Mobile banking security is always a hot topic. Security of cellular phones has been brought into question significantly with the news in England that one of the tabloid newspapers has hacked people's phones to gain access to personal information. This brings rise to the bigger question "Is it safe to use your mobile phone to conduct business transactions or personal banking? What steps can one take to protect themselves from having problems related to mobile banking security?

Many companies are currently developing enhanced applications to further add security features to protect their customer's mobile phone transactions. Mobile application development in the form of client applications is a focus of some major financial institutions like Citibank and Bank of America. Developing customized applications for the exclusive use by their customers, these companies are creating applications that can be downloaded directly to the customer's smart phone. Other company's like AT&T are creating third party downloads that can be used to access accounts at many other banks enhancing mobile banking security.

One reason specialized client applications are becoming so popular is because they are faster and more secure than logging into your bank's website. In most instances these user interfaces are simpler to navigate on the small displays that are common with smart phones. Often these applications will take some effort to install, but theoretically these applications are much more secure due to the fact that they have been design to work exclusively with your bank's own security algorithms. By avoiding the use of web browsers, mobile application development downloads are also immune to web based phishing scams. Considering downloading these far superior applications to your smart phone is an important step towards improving mobile banking security.

If you decide to download mobile application development software to your mobile phone, there are some downsides that come along with all of the benefits. One of the most serious concerns after you downloaded one of these client applications to your mobile phone is you now need to be very concerned if you should happen to lose your phone. A smart phone with client based banking applications installed on it can be very dangerous in the hands of the wrong person. One is cautioned to disable these options on the phone after each individual use and to make sure that you inform your bank in the event that you lose your smart phone to ensure mobile banking security.

One also needs to take into consideration that with these downloads your mobile smart phone is now carrying very sensitive information on the smart phone itself. Since many of these client applications allow for the user to remain connected for long periods of time, discipline in shutting down these applications after use is a must. One must also make sure that their application downloads are coming from a reliable source like your bank itself or a trusted source as there is significant danger in obtaining rouge downloads that will jeopardize your mobile banking security as well.

Reducing fraud and protecting your money while having client applications installed on your smart phone requires taking a few common sense steps to make sure that you remain protected:

•     One should make sure that their smart phone is setup to require a password to access the phone upon power-up and that the phone is also setup to go into a sleep mode after a certain period of time. If the phone is lost, it will hopefully power-down before someone else can attempt to access the phone and then the phone is password protected.

•     Don't allow your phone to be setup to automatically log into your account. This may sound like you are making your life more difficult, but you are also making it more difficult for an unauthorized user as well.

•     Never share your password, pin number, or account number.

•     If you lose your phone, contact your bank immediately to maximize your mobile banking security.

You should now be aware of many of the benefits, and some of the risks, of having your mobile phone setup to provide direct access to your bank through client applications. Being forewarned is being forearmed, and following these simple guidelines will make your use of today's technological advantages a safe one. Mobile application development is serious about providing customers with the latest benefits while also offering mobile banking security for all involved as well.

For more information about mobile application development, visit Magenic Technologies [http://magenic.com/] who have been providing innovative custom software development to meet unique business challenges for some of the most recognized companies and organizations in the nation.



By Chandra Heitzman

Challenges of Nigeria Mobile Banking

Mobile Banking refers to provision of banking and financial services with the help of mobile telecommunication devices. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information. Also known as M-Banking in Nigeria or in some instances SMS Banking etc. It is a term used for performing balance checks, account transactions, payments and others transaction services via a mobile devices. Some mobile Banking applications in Nigeria use pre programmed configurations settings.

Mobile Banking in Nigeria started from the transaction based activities whereby Bank customers are Notified via sms when transactions are conducted on their account or via Atm. This is a one way event and only for informational purposes only. GT Bank was on of the earliest Banks to provision this service to customers.

That was the early days on Mobile Banking in Nigeria. Nigerian Banks are now deploying full fledge banking via the Mobile Phones with array of services which were only possible in the Banking Halls before. Zenith Bank, UBA , GTBank, Diamond and Intercontinental Banks are the fore runners of this innovation.

Despite the watch and see attitude that some very leading Banks are taking about Mobile Banking in Nigeria, The mobile remains the Only and most available feasible means to provide mass market alternative to Branch Banking in Nigeria. The internet has only a penetration rate of 6 percent in a population of 140 million but mobile technology is close to 50 percent penetration with prospects for growth.

Mobile devices are the most promising way to reach the masses and to create a tie-in among current customers, due to their ability to provide services anytime, anywhere, high rate of penetration and potential to grow. Deployment of 3G in coming months will also enable Banks to offer more robust Mobile Banking technologies.

Key challenges in developing a sophisticated mobile banking application are Interoperability. The single reason for is the manner in which mobile phone applications evolved over time, device manufacturers focused on particular standard and and this led to a proliferation of applications. The Financial Regulator CBN should look in this issue at this early stage so that Mobile Banking ecosystem can be robust with National standard that cuts across all Banks. Bank specific Mobile Banking platforms is akin to having each bank deploying its own ATM Technology which other bank customers cannot access.

Interoperability can also help to evolve a standard that will enable low end phones which are currently excluded, to do Mobile Banking. Some countries like India and South Africa are already using some standards like R-World and USSD.

Application distribution for Mobile Banking is another area where some Banks are facing Challenges. While some forward looking Banks are overhauling their gateways and reducing their reliance on Mobile Operators settings to enable customer's phones, Some Banks are actually asking that Customers come with regular Operator settings which in many instances might not be correct configurations settings..

Operator settings are not really meant for critical operations since most of the settings are used for entertainment based activities. Nigerian Banks that are looking at competing at this sector must look beyond operators settings which might not be correct, delayed in arrival,may not come at all and not regularly updated. Some Mobile operators do update like every three months while some do not at all. For wap and Gprs based Mobile Banking applications, mobile network coverage will also be an issue.

As part of their marketing strategies, I will expect that by now, customers do not need to visit local Branches to download Banking applications. Over-the-Air (OTA) Settings should be readily available online and some innovations can even come to play by Banks deploying Bluetooth application machines in Shopping malls and some strategic places where customers can visit and download Mobile Banking applications for free or for a fee..This will increase the addressable market of the Banks offering Mobile Banking exponentially in Nigeria.



Emmanuel Okoegwale
emmanuel@gomobileng.com

Emmanuel Okoegwale works for Gomobile Nigeria. He is an experienced Mobile marketing specialist.