Mobile Banking - Good or Bad?

According to research done by the Neilsen Company, 9 out of 10 people have a cell phone and more than half of those people have smartphones. A smartphone is basically a small hand-held computer that allows you to access email, the Internet, make a phone call, or run applications. A growing number of financial institutions now offer mobile banking so customers can use their smartphones to check their balance, find the nearest ATM, pay a bill, or even transfer funds from one account to another. With all this technology, consumers need to understand the services offered and to be careful to protect their personal and financial information.

There are many mobile banking services available. For example, some institutions offer to send customer alerts to cell phones in the event that an account becomes overdrawn or if suspicious activity is detected on their account. This is a great tool for someone who travels and may not access their account on a regular basis or for someone who uses debit cards worldwide. Some institutions have created their own "app" that is available as a smartphone download in order for people to access accounts and process transactions.

But with all of this great technology, consumers need to decide what is right for them and what are they comfortable using. Some consumers are more open to the concept of mobile banking and are willing to pay for those services while others are more reserved and concerned about security or fees associated with the technology. Here are three basic things to think about if you are considering using mobile banking:

•     Does your banking institution charge for mobile banking? Most do not, but don't just assume this is the case.

•     What can you do to protect your information should you choose to use mobile banking? Always make sure your phone and your mobile banking application is password protected. Don't choose an obvious password like 1234 or your initials. By password protecting your mobile banking, you are protecting yourself should you lose your phone. A web or application-based mobile banking system is more secure than those that use text messaging. It may sound silly, but you may want to consider purchasing an anti-viral software for your phone or mobile device. It is only a matter of time before the very viruses that invade home computers will try to invade smartphones.

•     Know the risk. Before you sign up for mobile banking, know and understand the risk if something goes wrong. Be sure to understand how the system works and if there are time lags between you making the transaction on your phone and when the funds are available. Also, understand what happens if you transfer money to the wrong place... what is your liability? Some institutions now allow you to do "P2P" transactions where you can transfer a small amount of money to a family member or friend from your phone. They are called "person to person" payments and can be very convenient. But be informed and ask what fees and liabilities might be associated with this service.

Mobile banking certainly can help you keep better tab on your accounts if you are busy or if you travel a lot. However, you need to decide if the risk is worth the gain. Taking the time to be informed and understanding the latest and greatest product may save you a lot of money and hassle. Talk to your institution and let them explain how their mobile banking works, talk to your friends and co-workers to see how they like it and figure out what works best before you decide. Making an informed decision means taking a little time now to potentially save a lot of time and effort later.



Joanna Murphy is Certified in Bankruptcy and is a Certified Financial Counselor by the Credit Union National Association. Her company, New England Credit Consultants is the ONLY licensed and bonded credit repair agency in the State of Maine. For more information about NECC and to read other articles about Financial Fitness, please visit http://www.necreditconsultants.com.




By: Joanna Murphy

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