What Is Mobile Banking? Mobile Banking Is the Act of Making Financial Transactions on a Mobile Device (Cell Phone, Tablet, Etc.)

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What Is Mobile Banking? Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.

Understanding Mobile Banking Mobile banking is very convenient in today’s digital age with many banks offering impressive apps. The ability to deposit a check, to pay for merchandise, to transfer money to a friend or to find an ATM instantly are reasons why people choose to use mobile banking. However, establishing a secure connection before logging into a mobile banking app is important or else a client might risk personal information being compromised. INVESTING FINANCIAL TECHNOLOGY & AUTOMATED INVESTING Mobile Banking By JAMES CHEN Updated Jun 26, 2019 What Is Mobile Banking? Mobile banking is the act of making financial transactions on a mobile device (cell phone, tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a client’s cell phone or as complex as a client paying bills or sending money abroad. Advantages to mobile banking include the ability to bank anywhere and at any time. Disadvantages include security concerns and a limited range of capabilities when compared to banking in person or on a computer.

Mobile Banking and Cybersecurity Cybersecurity has become increasingly important in many mobile banking operations. Cybersecurity encompasses a wide range of measures taken to keep electronic information private and avoid damage or theft. It is also used to make data is not misused, extending from personal information to complex government systems.

Three main types of cyber attacks can occur. These are:

Backdoor attacks, in which thieves exploit alternate methods of accessing a system that doesn't require the usual means of authentication. Some systems have backdoors by design; others result from an error. Denial-of-service attacks prevent the rightful user from accessing the system. For example, thieves might enter a wrong password enough times that the account is locked. The direct-access attack includes bugs and viruses, which gain access to a system and copy its information and/or modify it. Steps financial advisors can take to protect their clients against cyber attacks include:

Helping educate clients about the importance of strong, unique passwords (e.g, not reusing the same one for every password- protected site), along with how a password manager like Valt or LastPass can add an extra layer of security. Never accessing client data from a public location, and being sure the connection is always private and secure. Mobile Banking and Remittances Remittances are funds that an expatriate sends to their country of origin via wire, mail, or mobile banking (online transfer). These peer- to-peer transfers of funds across borders have enormous economic significance for many of the countries that receive them – so much so that the World Bank and the Gates Foundation have set up complex tracking mechanisms. They estimate that remittances to developing countries amounted to $529 billion in 2018, up 9.6% from the previous record high $486 billion recorded in 2017.

Security issues In regards to new technology, fraud and cyber security, there are recent concerns around hacking impact on the 2016 elections, data security in banking and many other regulated industries. Besides driving growth and profitability, the top challenges in banking includes managing risk around; Compliance Fraud/Cybersecurity Integrating new technologies Integrating technology platforms after a new merger or acquisition Identity Theft In interviews with CionSystems executives, a cyber-security engineering firm focused on security in the banking & medical industries, they see consistent problems in three primary areas:

Identity - Computer security systems that enables the right individuals to access the right resources, at the right times and for the right reasons".

Access - selective restriction of access to a physical or online resource. (Includes resources such as online banking systems.)

Authentication - the process of comparing credentials and then comparing those credentials with a record of authorized users. Zubair Ansari, the CEO of CionSystems says, “…the crypto wars will continue to heat up.” Also, indicating that what he’s seeing is that Banks and payment companies continue to be popular targets for local and international hackers. Indicating also that, shareholders and government agencies will be recommending and requiring that cybersecurity rules for banks will get tougher moving forward.

The prediction is that IT Due Diligence will need to focus on insider security threats. Meaning that employee, contractor and vendor access to information “Inside the firewall” will need to be audited more frequently. Because of the technology industries push towards the “Internet of things” (IoT) there will also be new security and privacy risks. And there will of course be the same recommendations around: Password policies will become much more strict and disciplined Identity theft Disgruntled employees with access Secure and Immediate de-provisioning while complying with regulations for employees, contractors, vendors and other accounts Online and in- person Impersonations Stricter email policies (think malware, strange links and reconnaissance emails) Card-not-present, credit card fraud is continuing to rise Stolen Laptops

Telephone banking:

Meaning:

Telephone banking is a service provided by a bank or other financial institution, that enables customers to perform over the telephone a range of financial transactions which do not involve cash or Financial instruments (such as cheques), without the need to visit a bank branch or ATM.

History of Telebanking Banking:

In 1972, Egyptian engineer Mohamed M. Atalla, the founder of Atalla Corporation, filed U.S. Patent 3,938,091 for a remote personal verification system which utilized encryption techniques to assure telephone link security while entering personal ID information, which would be transmitted as encrypted data over telecommunications networks to a remote location for verification. This was a precursor to telephone banking.The patent mentioned the system's application for the use of a credit card over a telephone call. Telephone banking became commercially available in the 1980s, first introduced by Girobank in the United Kingdom, which establishing a dedicated telephone banking service in 1984. Telephone banking saw growth during the 1980s and early 1990s, and was heavily used by the first generation of direct banks. However, the development online banking in the early 2000s started a long term decline in the use of telephone banking in favor of internet banking. The advent of mobile banking further eroded the use of telephone banking in the 2010s. Operations in Telebanking Banking: To use a financial institution's telephone banking facility, a customer must first register with the institution for the service. They would be assigned a customer number (which is not the same as the account number) and they may be given or set up their own password (under various names) for customer verification. Customers would call the special phone number set up by the bank and would authenticate their identity through the customer number and a numeric or verbal password or through security questions asked by a live representative. The service can be provided using an automated system, using voice recognition capability, DTMF technology or by live customerservice representatives. In India, a variation of telephone banking utilizing missed call numbers, assigned to specific tasks (such as checking balances or performing money transfers), is offered by major banks.

Organizational structure of Telebanking:

Functions of Telebanking

Telephone banking security – How secure is telephone banking?

Telephone banking is a safe and secure way to conduct everyday banking activities. However, the level of security your bank provides depends on what security measures they have in place when you call their automated banking hotline.

Telephone Banking Security

Different banks have different types of security in place for their telephone banking systems. For example, you can access Santander telephone banking services with just your long Debit Card number and your date of birth, or a Customer ID and telephone banking number. And with RBS, you can access RBS’s telephone banking services by inputting your unique customer number and then a few digits from your passcode.

This level of security is the same as with online banking. When you bank online with RBS, for example, you are usually asked to input a unique customer number, three digits from a numerical passcode and three characters from a password to be granted access to your online banking account. Banking websites also have an SSL certificate, which keeps your passwords and other sensitive information private when you access them.

Some telephone banking systems also have voice security. This feature asks you to speak your password, and voice recognition technology is then used to confirm it is you. For example, Barclays and HSBC use this security system to prevent fraud. It is called Voice ID. Is Telephone Banking Secure Enough?

Research conducted by consumer group Which? in 2013 found that First Direct was the best bank with regards to telephone banking security, while Halifax and Santander were the worst. With Santander, for example, Which? were asked for nine pieces of simple information that a fraudster could easily have access to. First Direct, meanwhile, asked them extremely hard high-security questions that a fraudster wouldn’t know.Taking that research into account, it is obviously the case that some telephone banking systems are not as secure as they could be. NatWest, for example, only ask for a customer number that’s based on your DOB and then three digits from a security number. This level of security is basic, and while it is easy to use, it isn’t the best from a security point of view. The best systems ask private questions, and they use voice recognition to confirm your identity.

Top Tips for Safely Using Telephone Banking

 Make your call in private and never in a public place  If you must bank in a public place, shield your phone’s screen  Keep your Debit Card on your person at all times  Don’t write down your pass code or security number  Never give out your PIN number or account number on the phone

Features of telebanking

Advantages of Telephone Banking:

 It is convenient because you can pay your bills on time and do not have to go to the utility company during the business hours.  It saves time as it eliminates waiting in line at the utility company.  It is safer because you do not have to walk around with cash to pay your utility bills.  It is cheaper since the transaction cost is less than transportation cost to and from the utility company.

Disadvantages of Telephone Banking:

 First time users may find the system slightly difficult to use.  Instead of a receipt you will receive a transaction reference number as proof that the payment was made.

Call centre:

A call centre (British English, Canadian English) or call center (American English; see spelling differences) is a centralised office used for receiving or transmitting a large volume of enquiries by telephone. An inbound call center is operated by a company to administer incoming product or service support or information enquiries from consumers. Outbound call centers are operated for telemarketing, for solicitation of charitable or political donations, debt collection, market research, emergency notifications, and urgent/critical needs blood banks. A contact center, further extension to call centers administers centralized handling of individual communications, including letters, faxes, live support software, social media, instant message, and e-mail.

A call center has an open workspace for call centre agents, with work stations that include a computer and display for each agent, a telephone set/headset connected to a telecom switch or to an inbound/outbound call management system, and one or more supervisor stations. It can be independently operated or networked with additional centres, often linked to a corporate computer network, including mainframes, microcomputer/servers and LANs. Increasingly, the voice and data pathways into the centre are linked through a set of new technologies called computer telephony integration. The contact centre is a central point from which all customer contacts are managed. Through contact centres, valuable information about company are routed to appropriate people, contacts to be tracked and data to be gathered. It is generally a part of company's customer relationship management infrastructure. The majority of large companies use contact centres as a means of managing their customer interactions. These centres can be operated by either an in house department responsible or outsourcing customer interaction to a third party agency (known as Outsourcing Call Centres). 8 Features Call Centre Must Have

 Interactive Voice Response (IVR) An Interactive Voice Response is the first voice customers hear right after contacting you.  Automatic call distribution (ACD).  Skill-based Routing.  Call Recording.  Call Tracking and Monitoring.  Live Call Transfer.  CRM integration.  Analytical Reports.

Advantages of call centre:

Call centers are used for almost any purpose. When a call center is hired by a company, it is considered outsourcing. Outsourcing through a call center provides resources a company normally would not have. Call centers are trained to manage large volume and varied clients and services. Outsourcing through a call center also provides up-to-date technologies. Call centers are accustomed to providing these services and typically have all the latest technology available.

Disadvantages of call centre:

Using a call center has disadvantages as well. The quality of service is typically not as solid as it would be in a company setting. Security is another disadvantage. Workers in call centers have access to personal information for thousands of people. This can lead to security issues.