Building the future of mobile banking - Part III


January 2018

For several years now, the growing use of mobile devices to surf the web and make online payments has caused a steady rise in the number of targeted attacks. Every year, incidents related to fraud are generating increasingly heavy costs for banking establishments and the techniques employed are becoming more sophisticated.

In addition, while users are becoming more vigilant when carrying out digital operations, they seek reassurance when it comes to their personal data. According to a recent report published by HSBC1, key consumer concerns include ‘personal data leaks’ (56% of respondents), ‘bank account hacking’ (55%) and ‘bank card cloning’ (54%). Furthermore, 87% of respondents consider the security of their personal data as important as the security of their money.

In a bid to contain these trends, legislation has been tightened in recent years and is posing several major operational challenges. Rather than being a constraint, these new regulatory requirements offer mobile banks the opportunity to optimise customer knowledge, personalise customer experience and services, reinforce operational security and, as such, boost trust in mobile banking services.

In addition to respecting regulatory requirements, mobile banks must obviously provide the necessary guarantees to win and retain client trust in digital services: ensuring authentication and personal-data confidentiality and implementing measures to combat fraud.

This level of security must be maintained at all times, notably for:
•    Customer onboarding, in order to validate their identity
•    Accessing banking services even if not authenticated
•    Payments services, to identify and block any doubtful transactions.

In this, the third and final part of our Building the future of mobile banking study, realised in collaboration with Efma, we take another look at these key moments of exchange between the bank and its clients from the point of view of introducing the security and compliance principles to be implemented.

Our report, which covers the individual and professional markets worldwide, is based on numerous inputs such as our security and compliance materials, our digital banking services benchmark, our digital banks and fintech observatory, our benchmark of process performance within the retail banking industry, banking case studies and a selection of interviews. These resources are shared throughout the report, alongside analysis of more than 30 digital banks, including new challenger banks, digital banks, traditional banks, and approximately 180 fintechs.

This will be followed in due course by a global report that summarises all our findings into the future of mobile banking by looking at the pillars that address the bank’s key areas of operation:
•    Part I: Customer targets, acquisition strategy and customer experience
•    Part II: Organisation and processes
•    Part III: Security and regulatory issues.

Keywords : Cybersecurity/Authentication , API/Open banking , Compliance/Regulation , Digital/Mobile channels