Era of Mobile Banking

In the last decade, we experienced the Omni-channel revolution and introduction of new digital banking delivery channels, on which I can cite, internet banking, mobile banking, SMS banking, POS Payments, MNO Agents, etc…

In this article, I will concentrate on the mobile banking channel that I believe is considered as the most revolutionary channel and attracting more and more attention and challenges.

Based on the British Banking Association, more than 12.4 million banking application were downloaded, nearly 40 million mobile and internet banking transaction done a week in 2013, in addition, to 457,7 million SMS balance alerts and text messages in 2013. Yes, those numbers are real and in year 2013, you can foresee a rise of those numbers for the year 2014 and 2015, do not be surprised!!!

Banks are under pressure to react to continuous technological improvements and provide customers access to their financial information and services, when and where they want, and through the convenient channel of their choice.

Mobile banking provides many opportunities to be developed and implemented within the coming years. Below are some major ones.

• Accelerate the evolution of mobile payment space.
• Innovate the product and service offering
• Capture the values of data to which banks have best access.

Those opportunities come with a whole set of problems and challenges for the mobile payment solution provider (MPSP), merchants and society to deal with.

In the mobile risk ecosystem, controls are effective for:

-  Users, to prevent by providing the education and the know-how.

-  Mobile Application, to detect and protect users from fraud transaction.

-  Backend, to protect and prevent the application from attacks and the safe transaction processing that will affect the mobile payment service

-  Fraud Engine, to detect and prevent from fraud transactions and predict his behavior.

- Governance and risk assessment, to protect, detect and prevent the whole cycle.

MPSP are constantly making R&D and investing in new techniques to increase security and protect users from any kind of attack and fraud activities which will affect negatively the use of this channel.

Thank you for reading this article!!!