Javelin Reveals the Most Secure Mobile Banking Channels
Javelin’s 2011 Mobile Security Report Evaluates Mobile Banking Security By Channel and Offers a Checklist of Solutions
SAN FRANCISCO--(BUSINESS WIRE)-- Javelin Strategy & Research’s latest Mobile Banking Security report evaluates the specific security issues mobile bankers face when using three mobile banking channels: web browser, application, and SMS texting. With 44% of banking consumers, the mobile browser is the most widely used of the three channels and is perceived by the consumer to be the most secure. Mobile bankers with smartphones view the browser as an extension of online banking. However, banking using a downloaded app is the second most widely used channel and actually the safest for mobile bankers, with 25% of consumers using this channel. This channel is. App banking has the potential to replace online banking altogether and serve as the consumer’s primary access to the FI.
SMS banking, used by 19% of mobile bakers, is declining in popularity and is the least secure channel. Consumers are using both their smartphones and feature phones primarily to check account balances and receive text message alerts.
“Like the great land rush, some FIs are hurrying in to carve out their territory in the mobile space. Unfortunately, rushing headlong into mobile without focusing on security can have disastrous results,” said Phil Blank, Managing Director, Security, Risk and Fraud at Javelin. “FIs need to educate consumers about security issues with each mobile banking channel and encourage users not to jailbreak their phones. In addition, FIs should direct mobile bankers to use the downloaded application, the most secure channel, where FIs have more control than the browser or SMS.”
For its 5th Annual Mobile Security Report: Mitigating Security Risks Transforms the Mobile Banking Channel, Javelin surveyed more than 3,000 consumers about their mobile banking preferences and concerns to establish profiles of SMS, mobile browser, and application bankers. Javelin also evaluated the user benefits and security risks of each mobile banking channel and the Apple, Android, and Windows 7 mobile platforms.
Mobile banking is on the rise, jumping to 28% of all mobile phone users in 2011, but security remains a top concern. “We’re seeing the second wave of consumer adoption of mobile banking,” said James Van Dyke, President, Javelin. “It used to be that consumers didn’t use mobile banking because they didn’t see the value in it. They weren’t as concerned with security. Now, more consumers cite security as the main reason they don’t use mobile banking. Our analysis and recommendations will help FIs address security concerns and gain a larger installed base of mobile bankers.”
Javelin’s Mobile Security Checklist
- SMS texting: FIs should educate consumers about SMiShing, a form of phishing that uses text messages to trick consumers into giving up personal information, in order to combat these types of attacks.
- Mobile browsers: FIs should encourage consumers to download third-party security software to help them vet websites and protect against viruses. While less important in non-jailbroken IOS devices, it is extremely important in the Android environment.
- Downloadable apps: FIs should follow good standard security practices: security style guides for developers, MATs and FATs security testing in QA, blind penetration testing by independent third parties and access penetration testing by independent third parties. Thoroughly vetting financial applications is essential because they regularly deal with sensitive consumer information.
- Remote Deactivation: FIs should build into their applications the ability to remotely ‘deactivate’ their application. Any data stored on the device should be done so fully encrypted and in such a way that the FI’s application can wipe that data in the event the device is lost or stolen.
Related Javelin Research:
- 2011 Mobile Banking Financial Institution Scorecard: Money Begins to Move on Mobile
- Mobile, low-income consumers and banking: what’s the connection?
- Second Annual Antivirus, Browser and Mobile Security Report: Financial Institutions Have ROI Opportunities in Leveraging Demographics
- 2011–2012 Mobile Banking Vendor Scorecard: Mobile Banking Has Moved from a “Nice-to-Have” to a “Must-Have” Channel
About Javelin Strategy & Research
Javelin Strategy & Research is the leading provider of quantitative and qualitative research focused on the global financial services industry. Our extensive quantitative data and deep analyst experience enable us to forecast the direction of the financial services market and make recommendations that empower you and your business to succeed.
For additional details on 5th Annual Mobile Security Report: Mitigating Security Risks Transforms the Mobile Banking Channel report, click HERE.
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Javelin Strategy & Research
Nancy Ozawa, 925-219-0116
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nozawa@javelinstrategy.com
www.javelinstrategy.com/research
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INDUSTRY KEYWORDS: Technology Security Mobile/Wireless Professional Services Banking Finance
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