Banking

19 posts categorized

June 07, 2016

Mobile and Microfinancing

 

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Mobile’s role in microfinancing appears to be growing, which isn’t particularly shocking. Mobile finance solutions are increasing in popularity due to the ability to perform banking actions with the mere touch or swipe of a smartphone, and many microfinance institutions have implemented m-banking platforms to reduce costs, improve customer service, and extend their reach in rural areas. 

 

M-Banking Financial Service Options

Microfinance institutions offering m-banking provide services such as loan repayment, account balance checks, and voluntary savings deposits. Countries that already feature mobile money networks find m-banking provides microfinance clients with the flexibility they want to manage deposits and payments, resulting in money saved and improved financial security. 

M-banking has also proved helpful to women in the developing world, as they frequently do not have formal bank accounts, and yet are often responsible for overseeing their families’ finances. 

 

Inexpensive and Efficient

Limited capacity and costly operational expenses are among the issues plaguing many microfinance institutions. Mobile finance solves these issues by allowing for microfinance service offerings on a cheaper, more efficient scale. Additionally, MFIs act as agents for mobile network operators and banks. This subsequently allows microfinance institutions to educate themselves on mobile finance options, minus the outrageous investment costs. 

Another benefit is the ability to take advantage of mobile phone penetration in the absence of an m-banking network. MFI clients can use their phones for non-cash purposes.

MFIs interested in using mobile banking options also do so with the intention of drastically improving operations by reducing service delivery costs and cross-selling their other products. This is designed to substantially increase efficiency. 

 

The Future of African Economics

Financial technology, or ‘FinTech,’ could potentially revolutionize economic situations in many African countries. More than two-thirds of the population of sub-Saharan Africa owns cellphones, but only one-third has bank accounts. Cash is still the main currency, yet more and more startup companies are putting their marks on the financial landscape. 

African FinTech companies include M-Pesa, the Kenyan money transfer system used all over Africa, as well as 22Seven, the Cape Town-based mobile app that links to user bank accounts and makes it easy to track spending, make investments, and create customized budget plans. 

Nomanini is another option. The wireless device looks like a game console and links cloud service software so informal vendors can process transactions easily from any location. Zoona is yet another African financial service that transfers money via cell phones. Other financial tools and services include Cellulant and GetBucks. 

 

The Bitcoin Element

Bitcoin is a form of mobile money featuring no tradable or inherent value and is therefore a welcome addition to Africa’s financial options. Currently BitX is more popular in Southeast Asia than Africa, but it’s entirely possible that it will catch on among African nations, especially given its African bank origins. 

What does it all mean? Mobile money is a viable option applicable the world over. As long as mobile banking and financing options are safe and secure, their popularity is highly likely to increase. 

 

June 05, 2016

How Mobile Technology Can Save Taxpayers Billions

 

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The Missouri Department of Transportation (MDOT) and other “next generation” government agencies are leveraging mobile technology to save taxpayers serious sums of money. Government agencies are notorious for wasteful spending, but various departments of transportation are taking cues from the Jefferson City, MO, location, as it’s become the model and standard for saving taxpayers millions via new technologies. 

 

Mobile Maps

Mike Miller, the assistant information systems director for MDOT, told Forbes magazine all the way back in 2012 about his department’s clever use of mobile maps. MDOT had to close two major interstate highways that year, and instead of shutting them down for “eight years” while keeping two lanes open and endangering workers, the department opted to provide residents with mobile maps and apps so they could drive around the freeways. That one decision saved MDOT more than $100 million in taxpayer funds.

 

Five-Year Plan

MDOT’s former head Peter Rahn suggested an ambitious plan to save taxpayers $500 million over five years. According to Miller, the department is ahead of schedule with plan implementation, as it began work in 2010 and has already met 70 percent of its goal. Among the efforts to make the five-year plan a success are using vans equipped with video cameras that film road roughness and allowing residents to rate them. MDOT subsequently fixes the affected road as soon as possible. 

Other actions in the five-year plan include having every MDOT building and roadside access point feature wireless capabilities for employees, so no one wastes time trying to find information. The department utilizes its social media channels to provide people with updates and news, cutting communication costs. MDOT uses SharePoint to manage its records and maintain 33,000 miles of road and thousands of bridges. SharePoint use has saved the department a great deal in oversight and project management costs. 

These are only a few examples of how MDOT is reducing costs with mobile technology. 

 

e-Construction Tools

Another tech innovation saving DOT organizations and taxpayers big money is e-Construction tools. These tools are defined as processes and technology that eliminate paper use, with examples including the digitization of construction documents for distribution to stakeholders through mobile devices. e-Construction was named as a standout tool in a recent Pavia System survey, with 53 percent of DOT respondents saying they adopted e-Construction and 71 percent of respondents noting that they use such tools “widely.”  e-Construction has helped build roads, bridges, and highways, and makes for much more timely deliveries. DOT respondents also said e-Construction tools contributed to at least 76 percent of on budget construction project completions. 

Representatives for the Idaho, Pennsylvania, and Texas Departments of Transportation all applaud e-Construction tools for their ability to save money and time while increasing productivity and resulting in fewer mistakes. 

 

Challenges

With so many benefits stemming from government agencies “going paperless,” why haven’t more departments of transportation made these helpful changes? One theory is that such agencies are responsible for long-term obligations unlike private industries, which simply move on to the next project once one is completed. A lack of tools customized for project owners’ specific needs is another possible reason. Regardless, going the “pilot” route and slowly using more and more e-Construction tools will hopefully alleviate these issues. 

May 28, 2016

Why Mobile Wallets Are Superior to Chip and PIN

 

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As banks and retailers try to avoid credit card fraud by turning to technologies like chip-enabled cards, mobile wallet solutions are still not being embraced as much as they should be.

Recently, banks launched their defense against credit card fraud by leaving the ramifications of fraudulent charges for the merchants to deal with. Merchants have thus been upgrading their equipment to accept credit cards with chips in hopes that the new and more secure technology will keep their customers’ account information secure, and customers coming back to their stores.

The problem with chip-enabled credit cards is that they’re slow to process. In the restaurant business and other industries that rely on being able to provide prompt service, seconds can add up and matter. 

 

Waiting Times for Chip-Enabled Card Processing

Imagine a grocery store clerk having to wait up to ten extra seconds for a chip-enabled credit card to process before it signals the receipt to print. Think about the frustration the clerk might endure and the delays the customers might experience. Why is this new and improved technology so slow? It has to do with the security processes. And while enhanced protection is a good thing, we think there are better solutions.

When a customer slides a chip-enabled credit card into the machine’s slot, the chip generates a one-time code that is sent to the bank over a secure network. The bank then confirms the code and sends the verification back to the machine; the customer is then able to walk off with goods or services.

 

Apple Pay and Samsung Pay as an Alternative

Instead of waiting eight seconds for a chip-enabled credit card to process, customers with iPhones, or Samsung or Android smartphones, can use mobile wallet applications at many retail locations to check out quickly. Apple Pay and Samsung Pay take about three seconds to process a transaction. Android Pay takes around seven seconds. We’ve even heard accounts of some mobile wallet processing taking only 2.4 seconds.

Granted, the length of time required to process chip-enabled credit cards is due in part to the fact that you have to insert the card, wait until the transaction is approved before signing, and then remove the card. It’s not the processing itself that takes all the time. But, with mobile wallets, all you have to do is have your app ready, tap, and scan. Of course, not all merchants take Apple Pay, Samsung Pay, or Android Pay. So, you’ll have to check for these logos on the merchants’ cash registers or research ahead of time to see which ones use the services.

Samsung Pay is the mobile wallet that’s accepted by most merchants, because it makes use of magnetic secure transmission. This technology produces a magnetic signal that acts like the magnetic strip on traditional credit cards, which means most credit card machines can read it. More banks support Apple Pay than Samsung Pay or Android Pay. Android Pay’s advantage is that it can operate on Android devices, Samsung phones, and even iPhones and Apple Watch. 

Staying on top of security, technology, and other aspects of life comes down to looking ahead and trying to predict where things are going, not focusing solely on where things are now. Hence, it might be best to ditch the old credit card solution for good in favor of mobile wallet technology, which can be used securely on the devices that seem to run so much of our lives.

April 08, 2016

Samsung Has Launched Its Mobile Wallet in China

 

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Samsung’s mobile wallet is making its way to China, no tunneling required. The international tech firm recently announced Chinese shoppers can now use their smartphones to pay for in-store purchases, and are therefore joining the Asian country’s trillion-dollar mobile wallet market. 

 

Partnership With UnionPay

SamsungPay was launched in partnership With UnionPay, the same bankcard company that helped bring ApplePay to life. UnionPay credit and debit cards are currently the only cards linked with local Samsung phones at this time, with up to 10 cards allowed per device. SamsungPay is available in China on the Samsung Galaxy S7, Galaxy S7 Edge, Galaxy S6 Edge+, and the Galaxy Note 5 smartphones. 

 

Positive Reception

Injong Rhee, EVP and Head of R&D, Software, and Services of Mobile Communications Business at Samsung Electronics, said the company is pleased to partner with CUP in order to bring SamsungPay to Chinese consumers. Rhee said SamsungPay reception has so far been very positive, and the service has found success in both consumer adoption and availability. 

The EVP also stated that Samsung hopes to make the payment option available to as many Chinese consumers as possible so that “everyone can have the opportunity to enjoy the simplicity, safety and convenience of this mobile payment solution."

 

Participating Institutions

Banking institutions currently participating in SamsungPay include the largest bank in the country, ICBC, as well as China Construction Bank and China Merchants Bank. Other major institutions such as Bank of Communications and Bank of China are said to follow suit. 

 

Additional Phones

In addition to the Samsung phones listed above, the Korean tech giant noted the possibility of adding more devices, including the Galaxy A5, A7, and A9, as they were also tested in public beta. Rooted devices do not support SamsungPay. 

 

The Challenge

China’s mobile wallet industry is quite well established, making Samsung’s foray into the market a challenging one. Local services such as WeChat and AliPay are used for online shopping and transportation services among other things, and are now available for brick-and-mortar store use. Analysts recently remarked that AliPay and WeChat are so ingrained among Chinese consumers that introducing new mobile wallet options will be an “uphill battle.” However, Samsung has previously noted one essential factor working for them: the technology is applicable to a larger number of existing payment terminals. 

 

“Simple and Safe”

Samsung also believes its mobile wallet option will work because it’s “simple, safe, and easy to use,” and that it works “virtually anywhere” in China that allows consumers to swipe or tap their cards. There’s no need to unlock phones or use special apps to access Samsung’s mobile wallet, which makes it arguably more appealing than earlier incarnations requiring these steps, such as Google Wallet. 

The mobile wallet is similar to ApplePay in that it utilizes near field communication technology (NFC). Samsung’s version will also support the magnetic secure transmission technology used on standard credit card machines. 

As of the fourth quarter of last year, Samsung was No. 6 in China’s smartphone market with a 7 percent share compared to Apple’s 15 percent. It will be interesting to see how the new mobile wallet option fares. SamsungPay is currently available in the U.S. and South Korea, and should enter the UK market later this year. 

April 03, 2016

Pinnacle Bank SMS Scam Hits Nebraska

 

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The people of Columbus, Nebraska, and nearby areas have been targeted by a text message scam. The local police department used social media to issue a warning, asking people to be especially weary of text messages requesting users to reply with personal banking information. 

 

What Is Text Fraud?

Text fraud, or phishing, has become increasingly popular among online criminals. This particular scammer targeted random phone numbers in and around Columbus and posed as local Pinnacle Bank. The text asked users to tap a link that would prompt them to verify their account information (even if they weren’t a bank customer), which gave the criminals access to users’ personal information. 

This isn’t the first time bad SMS news has hit the mainstream. Text fraud in particular is increasingly invasive on our mobile phones, and a serious problem for financial institutions around the world. Just last month, several banks in Australia were pawns in an SMS scam; 9 banks in total were part of an elaborate and sophisticated ploy that asked bank customers to check or verify private account information. 

The text messages alone don’t do any damage, but they’re designed to look and sound like the real deal. The Federal Trade Commission advises anyone who receives these types of text messages to delete them immediately. According to the FTC website, “Legitimate businesses don’t ask you to send sensitive information through insecure channels.”

Needless to say, text messaging is not a secure form of communication, even though 80 percent of text-savvy consumers use text for business. Working with banks or other private institutions via text isn’t the problem, and people shouldn’t be afraid to engage in SMS activity if they prefer that form of communication. However, everyone should be aware that the service businesses are able to provide via text are very limited, and they should never ask for private account information via text.

Online criminals commonly request things like usernames, passwords, and social security numbers; even something as simple as your address, phone number, or date of birth could compromises your identity. They’ll often use aggressive tactics to urge you to action, threatening to close accounts or discontinue service if the user does not respond. 

 

Protecting Yourself

The best thing to do if you ever suspect text fraud or a phishing scam is ignore the communication and notify the business the text claims to be coming from. The FTC also recommends that you protect yourself with security software, and keep your phone as updated as possible. Keep an eye on your credit reports and financial information. If you see anything that looks suspicious, catching it early can save you a lot of time and grief. And finally, report text fraud to the proper authorities, like The Anti-Phishing Working Group, which includes ISPs, security vendors, financial institutions, and law enforcement agencies. 

February 15, 2016

Most People Prefer Mobile Money Transfers Over Their Banks, Says Survey

 

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Is mobile technology the key to alleviating money transfer frustration? It certainly seems so. A new Amdocs survey noted that 83 percent of the 3,000 respondents were displeased with current international money transfer services available through banks and money transfer operators (MTOs), while almost half of respondents said the speed at which their money is transferred is the biggest issue. These respondents also said they’d be very willing to use their mobile devices to send money internationally. 

 

Seven Remittance Corridors

The study centered around seven main remittance corridors and their users: US-Mexico, US-Rest of CALA, US-Philippines, UK-Nigeria, US-Vietnam, US-India, and Germany-Turkey. These corridors make up $78.6 billion in annual remittances.

 

Mobile’s Opportunity

According to Sharath Dorbala, the vice president and head of products, sales, and marketing for mobile financial services at Amdocs, mobile technology has a fantastic opportunity to overtake other money transfer possibilities and become the dominant option. Dorbala further remarked to eWeek that mobile devices provide the ultimate convenience regarding transfer accessibility, ease of use, and availability. Mobile is making over the money transfer business the same way Uber changed the transportation business. 

 

The Right Time

Dorbala also cited people’s serious dissatisfaction with current money transfer options as another reason that mobile is poised to become the dominant choice. Convenience, cost, and security are among the top features people look for when sending money internationally, and mobile offers all of these things. Survey respondents even said they’d be willing to pay as much as $4 or $5 per transaction. 

 

Security Issue

Security is unsurprisingly a huge issue with international money transfers, and while MTOs aren’t the most convenient option, they have proven secure. Mobile money solutions are subsequently raising security standards to provide users with the reassurance they need. Biometrics such as facial recognition, fingerprinting, two-factor authentications, encryption technologies, and mobile network security are receiving adjustments to create the high standard of security associated with more traditional options. 

According to Dorbala, sending money internationally using a mobile device is just as secure if not more so than a credit transaction. 

Consultancy firm Juniper Research conducted the money transfer study on behalf of Amdocs. Dr. Windsor Holden, head of forecasting and consultancy at Juniper Research, echoes Dorbala’s comments about mobile’s position to take over as the main international money transfer option. He noted that mobile provides banks and MTOs with much-needed competition, and that its affordability lends itself to further evolution and efficiency. 

 

Yet Another Application

Mobile technology’s emerging role as a viable money transfer option is yet another way the technology is changing how people pay for goods and services. There are already numerous apps dedicated to bill-splitting and similar practices, including Google Wallet and Lovely, which take the headaches out of determining who owes what. Mobile is increasingly the popular way to pay for anything and everything, and there are suggestions it might overtake credit cards and cash as the favorite way to pay. 

Transferring money overseas, paying bills, splitting costs...mobile is arguably making these processes much, much easier. 

 

November 12, 2015

New ATM Concept Brings Mobile to the Fore

 

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Will that be cash or credit? These days most of us use plastic to pay for just about everything—from groceries and clothing to digital music and parking meters. But this hasn’t stopped Diebold Inc. from introducing a new line of ATMs aimed at providing future consumers with a unique mobile banking experience. 

In late October, Diebold unveiled two new ATM concepts at the Money 20/20 tradeshow in Las Vegas. The Irving and Janus models are the latest series to exclude common components of traditional ATM design and functionality. Most notably, both designs feature cardless transaction capabilities and mobile integration, which according to Diebold, will create a smoother and more convenient experience. 

 

New Features

Unlike traditional ATMs, the Irving is a sleek, screen-less, and pad-less terminal. Near Field Communication (NFC) activates the ATM when a user approaches the device.  NFC syncs with a user’s smartphone, thus eliminating the need for various material interfaces. To access funds, users verify their identities using contact-less technologies like QR codes or iris-scan and then withdraw cash. The Irving is also 32 percent smaller than traditional ATMs.

While the Irving delivers on speed and convenience, the Janus offers customer service in an entirely new format. The Janus is a dual-sided terminal, sharing basic components like alarm boards and connectivity, but can individually service two users at once from each side without compromising security or privacy. 

The Janus also incorporates mobile access features like NFC and QR code technology but also offers a tablet touch screen, which allows users to scan checks and sign documents. Additionally, if a user needs assistance, the Janus offers a 24-hour video teller for more complex problems. 

 

But Are They Safe? 

Mobilizing the ATM experience is a likely evolution. As consumers become increasingly familiar with mobile integration and applications, especially with the proliferation of banking apps, the need for brick-and-mortar bank locations decreases. But are these new cardless ATMs safe for consumers? 

Diebold’s ATM concepts reassure users with safety features covering several types of threats. First, the new machines remove nearly every skimming threat, because users would not have to slide a card or type a PIN. Second, the QR codes and other scanning technologies don’t contain any sensitive data about the user; they simply notify the smartphone of the connection. Connections are also set to expire after a short length of time, so even if the phone were lost or stolen, accessing the account would be impossible without proper user identification. And finally, the increased speed of the transaction greatly shortens the amount of time a person spends at the terminal.

Like all mobilized tasks, the use of mobile integrated ATMs will probably take some getting used to. In the future, it probably won’t be the end of the world if you forget your wallet at home, provided that you have your cell phone.

 

ABOUT THE AUTHOR

Jeremy Pollack has a B.A. in English from USC and has been writing professionally since 2001. He is the founder and editorial manager of Compelling Content Solutions, A copy writing and content marketing services company.

 

October 20, 2015

Be Wary of the Latest Text Message Bank Fraud Scam

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Internet scams make the news fairly regularly, spurring conversations about prevention with advice from experts as well as victims. While most of us know not to provide personal information via email, or when asked to do so by a pop-up window, few practice the same caution with regards to their smartphones. 

The latest scam involving identity theft is presenting itself to mobile users via text messages. The Better Business Bureau (BBB) recently got involved after several complaints surfaced regarding text massages from alleged financial institutions requesting data verification through a live link in the message. The BBB warned consumers about the fraudulent texts and reminded them of a similar case back in 2012. 

 

How it Works 

According to the BBB, mobile users were receiving alerts from their personal banks, asking them to verify their names, online IDs, and passwords at a site linked in the messages. In most cases the URL had the bank’s name included (or some variation of the name) and appeared to be almost identical to the legitimate website. Unsuspecting users would enter their personal data into the fraudulent site and would become at rick of identity theft and subsequent financial loss.  

Scams like these are, in essence, very similar to those we regularly encounter on laptop or desktop computers—usually via email or pop-up window. Over time most people have learned to avoid these scams and report them to the appropriate authorities.

So, what makes this so different? The success of this scam is tied to the emotional and irrational belief that our smartphones are safer because they are typically in our possession at all times. The intimate space of text messaging is falsely perceived as secure, more trustworthy, and relevant. 

This is unfortunately not the case. Just like unwanted push notifications, incoming solicitations and scams are very real threats if certain settings are left unchecked on a smartphone.

 

How to Combat Text Scams 

Most of have learned to deal with dubious emails and pop-up windows by deleting suspicious messages. Use the same caution on your smart device. Ignore the instructions of a text message asking for your participation to retrieve or verify personal data via text.

Further, you should check your phone bill every month. Check for services you haven’t ordered. Fraudulent changes may appear as one-time charges or be labeled ‘subscriptions,’ and may appear on each monthly bill.  

Commercial text messages, push notifications, and text subscriptions should lawfully provide you with an easy way to unsubscribe from them. If the option doesn’t appear to be available to you, check with your service provider to ensure your account hasn’t been compromised.  

Finally, ask your phone carrier about blocking third-party charges. Most phone carriers allow third parties (app companies, special ringtone services, etc.) to charge you for their services. Some carriers also have a way to block third parties from making charges. 

Don’t be afraid to call your service provider if you ever have any questions or suspect fraudulent activity. The worst thing mobile users can do if they suspect they are being scammed or unlawfully charged for services they don’t receive is nothing. Be proactive about your mobile safety, and you won’t become a victim of mobile scams. 

September 26, 2015

Are Canadian Banks Mobile Ready?

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According to a new report from CenturyLink entitled Banks: Customers Expect That You’re Always On and Available, Are You Ready?, 40 percent of Canadian banking executives say they do not have the IT infrastructure required to meet customers’ core banking service needs.  

“To stay competitive in a technology-driven marketplace, Canadian banks must be both financial institutions and mobile technology innovators,” said Roji Oommen, managing director of financial services at CenturyLink. “Given that many of these banks don’t believe they have the infrastructure in place to fully embrace mobile technology, strategic technology partners like CenturyLink can help identify and integrate the right IT and mobile technology solutions.”

The CenturyLink report notes that 26 percent of Canadians use mobile banking, which is up five percent from 2010. Much like Americans, Canadians now expect secure, round-the-clock solutions for their banking needs, making the call for mobile banking options greater than ever. 

 

Challenges for Banks

However, Canadian banks are struggling to meet these demands. Even the biggest names in Canadian banking note the pressure they feel to “get their products to market quickly,” and that their new tech-based competitors are “a disruptive force.” They still list digital customer service as a top priority, though they feel they lack the resources to make mobile payments and similar services happen quickly. In addition to the more than one-third of C-suite executives who say they don’t have the IT infrastructure they need to meet customer expectations, nearly 70 percent say they don’t have the infrastructure for digital channels, or the means to improve them. 

Canadian banks subsequently need not only to work with current mobile trends, but also to plan for the future. The future of mobile banking solutions, according to CenturyLink, is all about mobile-first applications that personalize the consumer experience. Most Canadians own at least one mobile device, and are very Internet happy, as they clock around 45 hours of usage per person per month. As of 2012, over 6.7 million Canadians pay their bills online. 

Despite widespread mobile use among Canadians, security issues still loom. Many older Canadians pay with cash due to perceived security threats, however use of cash is diminishing among Canadians of all ages.  

So how can Canadian banks provide customers with the mobile options they need and compete on a global scale? Outsourcing IT infrastructure is one solution currently being considered by banking executives. Ensuring mobile banking solutions are completely secure is another. Mobile banking is hardly a trend; rather it’s something that’s absolutely here to stay. Canadian banks must work with technology partners to make certain they go forward instead of remaining stagnant.

September 22, 2015

Making Mobile Banking Less Risky

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The world of work has undergone some radical changes over the last decade. Businesses have offices and employees scattered all over the globe; meetings take place via optic cables and tablet screens. The very notion of a ‘headquarters’, where all the important stuff happens, seems anachronistic in 2015. 

One of the key concerns for this diffuse employment culture is ensuring the security of financial transactions conducted over wireless mobile networks. There are a few ways to do this, each with their own advantages and drawbacks:

 

SMS Messaging

SMS has changed the banking industry inside and out, enhancing customer service and improving internal communications in a secure, reliable way. According to research by OpenMarket and International Data Corp (IDC), almost 90% of financial services companies believe mobile messaging has had a positive impact on the user experience, and 73% see text messages as an effective way to communicate with employees. 

SMS’ secret weapon is two-factor authentication (2FA), which drastically reduces the risk of fraudulent activity on an account. Even with 2FA in place, most financial organizations send notifications regarding high-dollar, high-risk transactions. 

The benefits of mobile banking go further than security (though, clearly, that’s the priority for both customer and bank). One in five financial services companies are using mobile messaging to ensure business continuity and enhance multichannel capacity, and one in four use it to improve risk mitigation (according to the IDC study). More than a third of banks use SMS to attract new business and improve retention rates for existing customers. 

 

Biometrics

Face, voice and fingerprint biometrics are making headway into finance security management. Facial recognition usually requires users to look at a screen and blink when prompted; for voice recognition, they read a short phrase.  

The simplicity of these actions is significant. It means biometrics and mobile messaging needn’t be mutually exclusive for the sake of convenience - they can work together to create a multi-factor authentication process that enhances security. Add to that the security of a password-restricted biometrics app, contained on the mobile device of the user, and you have a pretty tight ship.

 

Behavioral Biometrics

Even newer and shinier than physical biometrics is the concept of behavioral biometrics. It works by monitoring session behavior in desktop, mobile and cloud apps and creating a unique profile that draws on physiological data such as palm size and swipe and press patterns, as well as behavioral traits like usage preference and location habits. 

A number of behavioral biometrics systems are being developed for use by banks. Clearly, these additional layers of risk analysis and security can help protect customers - even across multiple devices - and provide a more frictionless experience at the same time.

This is all good news for mobile banking, which is already used by around half of customers at the main U.S. banks. Passwords are still expected by users, so are unlikely to disappear from view any time soon. Behavioral and physical biometrics are beginning to run alongside traditional log in data as a secondary line of defense, continually tracking the online tendencies of users to build an accurate picture and identify cyber security risks more quickly. The beauty of biometrics for the user is that there’s no need to download software or endure long sign up processes. All they have to do is, literally, be themselves.