Mobile Banking : What is Mobile Banking?

What is Mobile Banking?

Mobile banking, also known as
m-banking, is a service provided by banks and financial institutions that
enables customers to carry out various banking transactions using their mobile
phones or other handheld devices. These transactions can include checking
account balances, transferring funds, paying bills, and more.

Mobile banking services can be
accessed through mobile banking apps that are available for download on the app
stores of various mobile operating systems such as Android, iOS, and Windows.
Banks also offer mobile banking services through SMS or mobile web browsers.

 

How Does Mobile Banking Work?

Mobile banking works by using
secure internet connections to connect the mobile device to the bank's servers.
This connection is usually established through the mobile device's data network
or Wi-Fi. Once the connection is established, the user can access their account
by logging in with their account details, which may include a username and
password or biometric authentication such as fingerprint or facial recognition.

Once logged in, the user can
carry out various transactions such as checking their account balance,
transferring funds, paying bills, and more. These transactions are processed in real-time, and the user receives a confirmation of the transaction on their
mobile device.

 

Benefits of Mobile Banking

• Convenience: Mobile banking
  offers the convenience of carrying out banking transactions from anywhere and
  at any time. This eliminates the need to visit a bank branch or an ATM, saving
  customers time and effort.
• Accessibility: Mobile banking
  is accessible to anyone with a mobile device and an internet connection,
  including people living in remote areas or those with physical disabilities.
• Security: Mobile banking apps
  are designed to provide secure access to financial services, with features such
  as biometric authentication, encryption, and multi-factor authentication.
• Cost-effective: Mobile banking
  is cost-effective for both banks and customers, as it eliminates the need for
  banks to maintain physical branches and reduces the costs associated with
  paper-based transactions.
• Personalization: Mobile banking
  apps can provide personalized services to customers, such as customized alerts
  and notifications, targeted marketing offers, and personalized recommendations
  based on the customer's transaction history.

Mobile banking and
cybersecurity

While mobile banking offers
convenience, it also poses a significant cybersecurity threat. Cybercriminals can steal personal information, financial data, and even money from mobile
banking users. Therefore, it's essential to understand the potential threats
and take steps to safeguard our mobile devices.

 

(1) Phishing scams

Phishing scams are the most
common way cybercriminals steal personal information and financial data. A
phishing scam involves sending fake emails, text messages, or phone calls that
appear to be from a legitimate financial institution. The message may ask you
to click on a link or provide your login credentials to access your account.
Once the cybercriminals obtain your login credentials, they can access your
account and steal your money.

Note -  To avoid falling victim to
phishing scams, never click on suspicious links or provide personal information
over the phone or email. Always verify the legitimacy of the financial
institution by checking its website, contacting its customer support, or visiting
a physical branch.

 

(2) Malware attacks

Malware is malicious software that infects mobile devices and steals personal information, financial data,
and passwords. Malware can enter your device through unsecured Wi-Fi networks,
email attachments, or infected apps. Once the malware infects your device, it can
steal your banking credentials, intercept your transactions, and even control
your device remotely.

Note - To prevent malware attacks,
always keep your device and apps updated with the latest security patches.
Avoid downloading apps from untrusted sources and use only reputable app
stores. Install antivirus software on your device to detect and remove malware
infections.

 

(3) Unsecured Wi-Fi networks

Public Wi-Fi networks, such as
those in coffee shops, airports, and hotels, are convenient but unsecured.
Cybercriminals can intercept the traffic on these networks and steal your login
credentials, passwords, and financial data. Therefore, it's best to avoid using
public Wi-Fi networks for mobile banking.

Note - If you must use public Wi-Fi,
use a virtual private network (VPN) to encrypt your traffic and protect your
device. Always verify the network's legitimacy before connecting and avoid
accessing sensitive financial data on public Wi-Fi networks.

 

(4) Lost or stolen devices

Mobile devices are easily lost
or stolen, putting your financial data at risk. If your device falls into the
wrong hands, the thief can access your banking credentials, steal your money,
or even impersonate you to commit fraud

How to make mobile banking safe?

Some of the ways you can keep your mobile banking experience secure.

• Install the Latest Updates: One of the easiest things you can do to protect your mobile banking is to keep your device updated with the latest security patches and updates. These updates often contain important security fixes that can prevent cybercriminals from accessing your personal information. So, make sure you install updates as soon as they become available.
• Use Strong Passwords: Your mobile banking app may prompt you to create a password during the setup process. Make sure you choose a strong, unique password that is not easily guessable. Avoid using simple passwords such as "1234" or "password." Instead, use a combination of uppercase and lowercase letters, numbers, and symbols.
• Enable Two-Factor Authentication: Two-factor authentication (2FA) adds an extra layer of security to your mobile banking app. It requires you to enter a unique code in addition to your password to log in to your account. This code is often sent to your phone via text message or generated through an authentication app. This makes it much more difficult for cybercriminals to access your account, even if they have your password.
• Avoid Public Wi-Fi: When you connect to public Wi-Fi, you're potentially exposing your device to cyber criminals who may be intercepting your traffic. Avoid using public Wi-Fi networks to access your mobile banking app. Instead, use a secure, password-protected Wi-Fi network or your cellular data.
• Beware of Phishing Scams: Phishing scams are a common tactic used by cybercriminals to steal your personal information. They often come in the form of a fake email or text message that appears to be from your bank. These messages will usually contain a link that directs you to a fake login page where you'll be prompted to enter your login credentials. Always double-check the URL before entering your login information, and never click on links from suspicious messages.
• Monitor Your Accounts Regularly: Finally, it's essential to monitor your mobile banking accounts regularly. Check your account balances and transaction history frequently to ensure that there are no unauthorized transactions. If you notice any suspicious activity, report it to your bank immediately.

 

Bottom Line

Mobile banking has transformed
the way we do banking, providing convenience, accessibility, and security to
customers. With the increasing popularity of mobile devices and the rise of
digital technologies, mobile banking is likely to become even more widespread
in the future. As customers become more accustomed to using mobile banking
apps, banks will need to keep pace with evolving customer expectations and
provide innovative features and services to stay competitive.