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Rethinking mobile banking – Innopay expert insights

[vc_row padding_bottom_multiplier=”” margin_bottom=”0px”][vc_column][vc_column_text]Rethinking mobile banking to reduce fraud and improve security – putting the customer in control

More and more, banks are digitising, providing new options for criminals to exploit this trend. Using digital channels, criminals can commit fraud, obtain private and personal information and steal money. At the same time, customers are increasingly suspicious of unsolicited calls from people claiming to represent their bank, government or any other institute they normally deal with, posing security difficulties for all parties. Additionally, for customers, the introduction of open banking means the financial landscape of service providers will be even more fragmented, making it difficult for them to recognize the multitude of third party providers.

So, how can banks effectively manage this increasingly difficult security landscape?

Our relationship with our mobile phone might be part of the answer. Although not a silver bullet, this personal relationship and our 24/7 access to the device provides a powerful channel for banks to communicate with their customers.

When banks develop their mobile banking strategies, they could consider building a mobile security & response hub as part of their mobile banking platform. Examples of these models can already be seen by technology providers like Apple and Google, who provide security information to their users. A mobile security & response hub could, for instance, consists of in-app functionality to view notifications, flag transactions, view login history, etc. Using the existing banking app provides a secure interface for direct and quick communication between bank and customer. Where banks are increasingly dependent on sophisticated risk scoring models to reduce cyber risk and mitigate fraud, being able to have quick and direct feedback will improve intelligence-gathering and significantly reduce risk. However, just building a front-end app is not enough, as banks should also ensure their architecture is responsive and capable of real-time or near real-time risk scoring.

Some banks like Barclays and other banks in the United Kingdom are already doing similar checks via SMS with customers. However, not many banks are using their mobile banking app to communicate with clients and giving them an active role in fighting fraud and improving security, but they in all likelihood should. An increasingly complex threat landscape means banks should use every means to mitigate risk and protect their customers. But that is not all. In addition to reducing risk for the bank, it might very well improve the overall experience by giving back control to the customer.

If you want to know more about how to remain secure in a fast-changing landscape, sign up for the 3 day Cyber Security Fundamentals course from INNOPAY Academy (9, 16, 23 April Amsterdam). No prior knowledge of cybersecurity required! Teacher Dr. Rob van der Staaij learns to explain the most complicated crypto & security concepts with humor! Sign up now!

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This expert insight piece is a guest post written by Jelger Groenland, Cybersecurity Manager at Innopay.


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