The future of mobile banking security?

As January draws to a close, so too does the opportunity to comment on the European Central Bank's (ECB) draft recommendations for mobile banking and payment security. Once finalised, the measures set out by the ECB will need to be implemented by every European mobile banking and payments provider by February 2017, writes Clayton Locke

As January draws to a close, so too does the opportunity to comment on the European Central Bank’s (ECB) draft recommendations for mobile banking and payment security. Once finalised, the measures set out by the ECB will need to be implemented by every European mobile banking and payments provider by February 2017, writes Clayton Locke

So, what do the draft recommendations tell us about the next stage of evolution in mobile banking security?

Three key themes emerge from the draft recommendations. These include greater control and monitoring of mobile banking and payments platforms; more robust authentication and security features; and increased customer communication and education. All three themes are underpinned by the need for greater transparency across every step of the process. From better use of event logs and more robust authentication, to educating customers about mobile security best practice, each recommendation is geared towards boosting visibility into mobile banking.

Although implementing the recommendations will inevitably cause a few headaches for some providers, they could not come at a better time. Innovations such as wearable devices and biometric security features are making the constantly evolving landscape of mobile banking security increasingly complex. Despite regulation still being something of a grey area, Deloitte is already predicting that by 2020, 100m Google Glass devices will have been sold worldwide. The smartwatch is already growing in popularity. From our own research, we know that the vast majority of people expect to be able to access their finances from any device. Therefore the proliferation of end-user devices will continue to pose a significant security challenge for any banking providers whose mobile banking systems aren’t up to scratch.

It is a challenging time for the industry, but transparency and rigorous testing will be key. As 2014 gets into full swing, we can look forward to many banking providers embracing the ECB’s recommendations and delivering the next wave of innovation in mobile banking and payments security to the customer.’