As technology offers ways of doing virtually everything from your computer whether it be order groceries, buy furniture, and trade stocks its hard to think, what's next? Well, there's an answer. Doing everything from your phone. With the growing popularity of iPhones, Blackberrys, and other PDAs the newest and coolest technological abilities seem to be for the phone rather than for the computer. One of these technologies which is expected to "explode" in the coming years is mobile banking. According to the MarketWatch article, "Mobile Banking Poses Fraud and Money Laundering Threats for Financial Institutions" by 2012 the mobile banking channel is expected to over 42 million customers from a meager 1.1 million customers in 2007. Currently available in the US, South Korea, Hong Kong, and Brazil, mobile banking offers customers a range of services from making and sending payments to trading stocks. As financial institutions offer customers such innovative services the article highlights the importance of information system security and potential threats to such innovative technologies.
As mobile banking technologies are still in their beginning stages, there have not yet been major threats, scams, or security problems. However, just as with any new technology, as demand and use increase so does the potential for misuse and hackers. Before customers sign up and utilize technologies such as mobile banking, they must be confident that their transactions, identities and alike are secure. From the financial institution’s perspective, not only must they ensure that customers have enough confidence and trust to use the technology but they must also ensure that the services do not create loopholes for criminals to utilize for money laundering or fraud.
A common theme surrounding innovative technologies which seem to grasp the market and become the methods in which we conduct our daily lives is security. Whether it be the security of the servers that host the world's largest stock exchange, or the security of the Internet when we process our credit card for a purchase, it is vital to the success of technology.
Mobile banking is no different. In order for it to "explode" the proper security constraints and protection must be in place to ensure that the technology only makes business more efficient rather than more penetrable. "But with this new channel, banks must also shore up their defenses with appropriate technological and program controls to make sure they can offer these services effectively and safely."
When combining information technology with financial services it is imperative that a strong balance of utility and security is achieved in order for products and services to be reliable and successful.
"Mobile Banking Poses Fraud and Money Laundering Threats for Financial Institutions"
http://www.marketwatch.com/news/story/mobile-banking-poses-fraud-money/story.aspx?guid={B1148F77-FCF1-461F-AE47-944985DB0E85}&dist=hppr
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1 comment:
There is an interesting tendency that cellphones are developing more and more similar with laptops, in terms of not only shapes but also functions.
When we can do more and more things via cellphones nowadays, security problems are always in our minds. Just as we did when we bought things in the early time on Internet. To resovle the problem, secure and convenient information platforms are necessary. Also government should carry out related regulations to protect people's rights. In the other way, the development of new indentification technologies, voice or finger identification for instance, will make people feel safer when trading via mobiles. I believe mobiles banking and trading will be a potential growing market.
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