In today’s dynamic and digitally connected world, digital finance is one of the most prominent mobile app development trends. With everything getting digital, it is not a surprise that people are looking for mobile banking solutions for their financial activities. However, many financial institutions don’t consider the security risks in mobile banking.
Cybercriminals have their prying eyes over financial data, which could potentially steal millions of dollars from banks. For this reason, it becomes important to consider a trustworthy mobile app development company. This blog will explore some of the most critical mobile app security risks in banking and their solution.
The Safety and Security of Mobile Banking Apps
Mobile banking is often more securer than other online services. Banks and financial institutions have to maintain a high level of security and trust. Plus, consumers are also more cautious when their money is at stake.
However, it doesn’t mean that mobile banking apps are completely safe from hackers and vulnerabilities. Any technically savvy hacker can take advantage of public networks or weak passwords to exploit financial data. In fact, mobile banking attacks are some of the most common cyberattacks on the internet.
Why Mobile Banking Apps Are Not Secure?
There could be multiple reasons behind the security breaches in mobile banking apps. It is often recommended to hire mobile app developers from a trustworthy source. This way, you can mitigate the following risks;
The Growing Complexity of Banking Apps
Banks and financial institutions have their own applications with proprietary features and functions. Although they can be useful, they also unnecessarily increase the complexity of the application. It can make it much harder to ensure the security of the banking app. A unique feature can also give an invitation to new security vulnerabilities.
These days mobile banking apps often rely on third-party code libraries and frameworks. They provide various functionalities, such as payment processing gateways, data storage, or user authentication.
Having these frameworks can save a lot of time in development, but they can also invite various security risks. Thus, it is always better to consult a custom mobile app development company that helps you choose the right framework.
Insecure Data Secure
Even a common American citizen has concerns while securing his/her personal data. As a financial organization, it becomes incredibly important to choose a highly secure data storage solution. Your mobile banking app will be responsible for storing sensitive financial information. Having insecure data storage can compromise user credentials and transaction details.
Weak Encryption Technology
Financial businesses use encryption technologies to protect sensitive data from their organization. However, if the technology is obsolete and the algorithm is weak, it can invite attackers. Data encryption is also one of the leading mobile app development trends.
Poor Authentication Measures
Having weak or non-existent authentication is another problem of mobile banking apps. Attackers can use this vulnerability to gain unauthorized access. They often use high-performance computers, and advanced techniques are making it much easier for attackers.
For this reason, it has become vital to consider multi-factor authentication and proper lockout systems.
Untrustworthy Sharing Services
Many mobile banking apps have to share services with other applications. It can give birth to potential security risks. You must consider consulting with a high-rated mobile app development company to mitigate such risks.
What Consumers Need from a Mobile Banking Application?
Every consumer wants a sense of trust and assurance from the mobile applications that they use. These are some expectations your consumers are expecting from your mobile banking solution;
- Real-Time Alerts: Your consumers want complete notifications on every sensitive or large transaction. It enables them to stay updated with their financial activities and look for any discrepancies.
- Stolen Information Monitoring: As a financial business, you have to keep an eye on every customer’s information. Ensure nothing is stolen or made public. This way, you can earn the trust and win loyalty of your customers using your mobile application.
- Fraud Reimbursement: You must prepare a fraud reimbursement policy for customers who might blame you for a fraud incident.
Securing a Mobile Banking App
In the age of digital communication and advanced technologies, a DIY approach is out of the question. You can be responsible for handling millions of dollars and sensitive customer data. In such scenarios, it is always better to consult a leading custom mobile app development company. Here’s what they will do to secure your mobile banking application;
Latest Encryption Measures
You can hire mobile app developers to enforce the best encryption measures for protecting sensitive data in mobile banking apps. Individuals without a decryption key won’t be able to access this data. Attackers will find it incredibly harder to access encrypted sensitive data, such as login credentials or financial information.
Multi-Factor Authentication (MFA)
Smart businesses use this measure to implement multiple layers of authentication before giving access to the account. This additional security layer keeps the attackers away from stealing information or unauthorized access. Thus, even if the initial credentials are compromised, the second layer of protection prevents the attackers from gaining access.
Provide Regular Updates
When you update your mobile banking applications, you are able to stay away from security vulnerabilities that may emerge over time. Updates can provide bug fixes and security patches to address various issues.
You should consider mobile app development services to get protection against the latest threats in the market. Although regular updates can be a little inconvenient, the benefits are really worth it.
A smart mobile app development company takes the best measures to make it super hard to reverse engineer the mobile banking application. They have to obfuscate the code, encrypt data, and take anti-tampering measures for the ensuring maximum security. This way, attackers won’t be able to access sensitive data or modify the app.
Importance of Mobile Banking in the 21st Century
We cannot understate the importance of having a mobile banking application. Financial institutions should consider developing an app for the following reasons;
- Customer Convenience: Mobile banking provides next-level convenience to customers. They don’t have to visit the bank every time for every financial task. For example, customers find it very convenient to use mobile banking apps for transferring funds to another account without the requirement to visit a physical bank branch. Mobile banking apps have multiple features, such as bill payments, loan applications, and mobile check deposits.
- Competitive Advantage: Many financial institutions still don’t have their mobile application. You can take advantage of this opportunity by providing a mobile solution with incredible flexibility, features, and security.
- Cost-Efficiency: It is always a cost-effective option to go digital and ditch paperwork. Moreover, mobile banking apps can help you automate various processes, such as bill payments, deposits, and loan applications. Every automation reduces the need for manual labor and helps you save more.
- Improved Security: Having a dedicated mobile banking application can improve your security standards as compared with traditional banking methods. You can integrate advanced authentication methods like biometrics for proper verification of users. It also helps you get real-time alerts on any potential frauds or threats on your system. This helps in building customer trust and improving the overall experience.
- Data Analytics: When you compel your users to get your mobile banking application, you can enter into the goldmine of data. This vital insight can help you understand consumer behavior and preferences. Many businesses use this information to streamline their services and meet the particular needs of their customers. Ultimately, you are able to make data-driven decisions with access to data analytics.
The age of mobile banking is giving birth to new security threats. However, you can always mitigate them by consulting with a reputed mobile app development company. Take proactive steps to understand the threats of malware, security breaches, phishing attacks, and more. By eliminating security concerns and providing features, you can attract more customers and gain a competitive edge.
The author is a professional developer at MobileCoderz, a leading mobile app development company. Over the years, he and his team have developed amazing mobile banking apps with complete security measures. Apart from work, he takes a keen interest in bike riding and playing with his pets.