By: Joe Gillen
Mobile banking has become a feature that is in high demand by consumers, and financial institutions across the country are funneling millions of dollars into research and development to build new mobile platforms. Despite the increased demand for this service, there is a large segment of Americans who are fearful of mobile banking and the potential for security breaches that using it may pose.
Although more consumers are expected to use mobile banking in the coming years, full-scale adoption may rely heavily on banks' ability to assuage these concerns and demonstrate the effectiveness of security features against fraud and identity theft.
The first step banks and credit unions can take is to clearly explain how mobile banking maintains the same level of security as online banking platforms, the latter of which has been largely accepted by nearly all demographics of Americans. In fact, many information technology and security experts note that mobile services may be more secure than online banking. One of the reasons for this is that most consumers - 91 percent - frequently have their phones on them at all times, making it difficult for criminals to scroll through their devices to access sensitive information, according to Bloomberg. In contrast, consumers may not know where their wallet or purse is at all times, which opens a large window of opportunity for thieves to access information because consumers notice.
In addition, through the use of SMS - short message service - and push buttons for smartphones, consumers can alert banks to monitor all transactions for fraud in real time if their phone is compromised. Finally, companies can use the GPS locator on smartphones to stop fraud in its tracks before it happens, which can save consumers a great deal of time and money resolving financial crimes.
Don't ignore consumers' fears
Finally, one of the worst banking strategies a financial institution can adopt is ignoring consumer fears and hoping they will come around. Instead of dismissing customers' concerns, institutions have the opportunity to help consumers empower themselves by explaining to them the actions they can take to protect themselves and their data. This includes not downloading information from unreliable sources or clicking on links from unknown sources. In addition, it's important to notify consumers of the dangers of accessing Wi-fi in public locations, which do not contain the same type of encryption safety that secured networks maintain.