Mobile, Regulated Industries & Security – The Trend of Mobile Banking
In today’s highly-mobile society, consumers want everything to be available on-the-go. As a result, developers create mobile apps for nearly everything we do. So it’s no surprise that consumers are now demanding a way to do their banking on-the-go, too.
As we’ve discussed, though, financial institutions have strict regulations—especially when it comes to digital services. Between privacy and security issues, complying with customer demands has been quite the maze to navigate.
Brian Tetrick, director of Athena Privacy, LLC, laid out the primary concerns, saying:
“Security of the mobile platform, security of the applications and privacy are the top three concerns surrounding mobile. Second to privacy is malware—malware that is specifically designed to target mobile banking apps and platforms.”
In May, Bank Info Security (BITS) issued a list of recommended guidelines for mobile security. These guidelines addressed the top mobile risks compiled from a poll of mobile experts. They include:
- Rapid growth
- Need for new security controls
- More players, more risks
- Privacy issues
- Role of consumers
- Anticipating risk
It’s clear that banking institutions are taking this seriously—and determining how mobile banking differs from its online counterpart. This is important, because according to the Federal Reserve, 60% of new customers said mobile banking influenced their decision on where to do business—and 11% said they use their phone’s camera to make remote deposits.
SOUND OFF: How important do you think it is for regulated industries to penetrate the mobile market?