The growth of financial mobile app development is constantly driving innovations in the financial sector. One of the quickest-growing sectors in the world is FinTech, born out of the merger of Technology & Finance.
Apps on your mobile device can help you manage your money better, such as checking your balance, transferring money, paying your bills online, etc. Yet, only about two-thirds of bank customers with smartphones use these apps to enjoy mobile banking.
What is preventing adoption from reaching its maximum potential? Lacking trust among consumers is one of the reasons for the same.
People tend not to trust technology, especially older generations, fully. The concept of having all their banking details at their fingertips scares them more than it intrigues them.
The remaining percentage of bank customers remain skeptical of mobile banking because of fraud, IP infringements, and malware. How can we convince them to switch?
It’s easy if you know how to…
Your mobile banking application must provide a high level of security, overwhelming them with it. Let’s find out how to make financial apps more secure so cyber criminals don’t target them.
How Can You Ensure the Security of Financial Apps?
1. Biometrics Authentication
Biological characteristics include fingerprints, retinas, irises, voices, faces, veins, infrared thermograms, eyes, or combinations of these factors. Several banking institutions have quickly adopted biometric authentication and embraced the latest means of digital security.
PINs are predicted to become obsolete by FinTech. More and more customers are migrating to digital platforms, making it imperative for financial institutes to provide a secure authentication procedure for mobile payments.
The biometric authentication method is safer than PINs or any other authentication method. People support biometric authentication, as 56%say that they trust the technology over PIN authentication.
2. Fingerprinting Device
The introduction of fingerprinting devices enhances financial mobile app development solutions. It automatically determines IP address, location, time, browser, device type, screen size, and other signals.
An application that is fingerprint-compatible or with fingerprint-capturing features can be built by mobile application development firms.
A key driver for payment technology advancement is security. It is challenging to develop payment technologies if the security is not up to par. The reason many financial companies and banks use machine learning for this is that they want automation to do the job. The umbrella of AI encompasses machine learning.
Transactions from banks are continuously fed into machine learning. The constant feed tells ML how an average transaction differs from a fraudulent one. Machine learning software tracks these cases and detects fraudulent transactions in real-time.
It is possible that you received a text message from your credit card company asking you if the transaction you just made is fraudulent. The ML software sends these messages to prepare you for significant frauds ahead of time. Cybercrimes are on the rise as criminals find new ways to steal and con people. In the face of criminals getting more imaginative, banks and businesses are implementing machine learning technology that is more secure than ever.
3. Make Use of Behavior Analysis
Several specialized software programs are available for monitoring and analyzing our login locations and online account activities.
Thanks to this technology, mobile banking apps can notify you of abnormal behavior to investigate further.
Alternatively, the bank may contact the customer to investigate the suspicious activity through email or text alerts.
4. Safe Digitized Documentation
Through Safe Digitized Documentation, you can also enhance the security of mobile financial apps. Electronic signatures can be advantageous for many industries, including eCommerce, call centers, retail stores, etc.
Using this method, a large amount of documentation can be accessed via mobile devices, enabling banking organizations to provide various benefits for their customers. And most importantly, it offers greater security by preventing cases of fraud.
5. Embrace the utilization of NFC-integrated SIM cards.
It is impossible to force your customers to use this security option, but it is strongly recommended. NFC-embedded SIM cards enable consumers to securely upload credit card data in the near field communication (NFC) cards.
This option allows for better protection of their comprehensive account information – since they won’t carry or swipe their physical cards. As a result, their credit card information is less likely to be compromised, opening their mobile banking applications. Therefore, hire a mobile app developer to build a safe and secure financial app for your business and integrate this technology to protect your customers from cyber-attacks.
6. Send Email Alerts and Real-Time Texts
Mobile banking users should assume they have direct access to their emails and text messages when they use their smartphones to access their banking. An email or text alert sent through a real-time system can alert a customer to account activity and help prevent fraud.
Some mobile banking applications, for example, alert you if you spend more than the amount specified by the customer. It would be more significant to warn the victim of compromising their information than to tell them that a substantial amount of money was transferred from their account.
7. Use Secure Authentication
Customer account data can be better protected between browsers and websites using secure connections mediated by technologies such as HTTPS. Data theft and unauthorized logins will be further prevented with this new technology. The financial sector often finds itself in a tough spot – customers want secure mobile banking, but the financial institutions don’t have it.
Although mobile banking increases bank and customer fraud risks, it also increases the risk of identity theft. Mobile banking applications must constantly work to improve security and remain ahead of cybercriminals.
As mobile apps become more secure, financial institutions can find ways to keep hackers at bay by incorporating new technologies and continually seeking emerging ones.
As well as this, it has a two-way aspect. Customer safeguards are also necessary when it comes to improving the security of financial and mobile banking applications.
It is an institution’s responsibility to continually educate its customers about Internet security and anything that could put them at an additional risk of fraud among the other services it offers.
Online platforms and mobile apps have enabled people to conduct transactions more efficiently. Hackers could also compromise the data, leading to a very chaotic situation. Therefore, this type of online security must be implemented with the utmost care.
Considering the massive amount of payment data that flows into banks, security is a vital component of payments. Particular machines and software can carry out tasks as complex as scanning frauds from such a large batch.