Mobile banking

With the term mobile banking (including M-Banking or mBanking called) the settlement is called banking business, which with the help of mobile devices such as mobile phones or PDAs takes place. There is the possibility of doing mobile banking via special applications / widgets (small installed programs) or accessing banking applications on the Internet directly via a mobile browser.

Mobile banking differs from mobile payment , in which payment transactions can be processed via mobile devices.

history

The earliest form of mobile banking was SMS ( SMS banking ) transactions . With the introduction of smartphones with WAP support, the first European banks developed platforms in the mobile Internet in 1999 to provide their services.

Apple 's success with the introduction of the iPhone and the rapid rise in the market for smartphones with the Android operating system resulted in an increasing number of apps for financial services. With the developments in the field of web technology ( HTML5 , CSS3 , JavaScript ) more and more banks published their own apps. In 2012, one third of all banks made a website optimized for mobile devices available to their customers.

Services

Mobile banking consists of three applications

• Mobile account management (mobile accounting)
• Mobile custody account management (mobile brokerage)
• Mobile Financial Information Services

Since information services provide the necessary basis for decision-making for transactions, account or custody account management services can only be offered if a certain minimum number of information services is also offered. Information services, however, can also be used as an independent module, i.e. H. without enabling the transaction services.

From a sales perspective, mobile banking gives banks an additional distribution channel . This is the reason why mobile banking plays an important role in the multi-channel strategy of many banks.

Technical requirements

In October 2010, ISO Technical Committee 68 "Financial Services" approved a New Work Item Proposal to develop the ISO 12812 "Mobile Financial Services" series of standards. Within the framework of this series of standards, specifications for mobile banking are to be normatively established.

When implementing applications for mobile banking, certain requirements must be met.

compatibility

There are a large number of smartphones from different providers and when creating an app, it has to be adapted for all different operating systems. Some devices have Java ME , while others support the SIM Application Toolkit . Still others only have WAP or SMS.

In 2009, the Mobile Marketing Association (MMA) (staffed by CellTrust and VeriSign) published an overview of financial institutions' mobile banking and the advantages and disadvantages associated with this development.

safety

Transactions that are processed via mobile devices represent an enormous security risk, since a number of potentially endangered interfaces have to be traversed and the data is sent and received via insecure wireless, and thus interceptable, connections.

To create a secure environment for financial transactions, several requirements must be met:

• It must be ensured that the end device supports the security measures used in the app
• At least a username and password should be required to make access to the app more difficult in the event of the device being stolen
• The end device must authenticate itself with the service provider before a transaction is carried out in order to ensure that no unauthorized person carries out the transaction
• All data must be sent and received in encrypted form
• All data stored on the device must be encrypted.

Often one-time passwords are also used as part of two-factor authentication to prevent theft by cyber criminals . The passwords are sent to the user for every transaction, who has to transfer it to the app for confirmation. The password expires after being used for the specific transaction or after a certain period of time.

Distribution and personalization

To ensure that the app is up-to-date, it has to be updated automatically at regular intervals.

The app should also be customizable by the user and allow personalization in the areas of language, format of the date, currency and transaction templates.

See also

• Photo transfer

literature

• Christoph Merte: Market strategies in mobile banking: Smartphones as a new sales channel for the financial industry Diplomica Verlag, Hamburg 2011, ISBN 978-3842857933
• Rajnish Tiwari, Stephan Buse: The Mobile Commerce Prospects. A Strategic Analysis of Opportunities in the Banking Sector . Hamburg University Press, Hamburg 2007, ISBN 978-3-937816-31-9 (free e-book as PDF or print version to order).
• Rajnish Tiwari, Stephan Buse, Cornelius Herstatt: Customer on the Move: Strategic Implications of Mobile Banking for Banks and Financial Enterprises. In: Proceedings. 8th IEEE International Conference on E-Commerce and Technology (CEC 2006). 3rd IEEE International Conference on Enterprise Computing, E-Commerce and E-Services (EEE 2006). Joint conference. June 26-29, 2006, San Francisco, California. IEEE Computer Society, Los Alamitos CA et al. 2006, ISBN 0-7695-2511-3 , pp. 522-529.
• Rajnish Tiwari, Stephan Buse, Cornelius Herstatt: Mobile Banking as Business Strategy. Impact of Mobile Technologies on Customer Behavior and its Implications for Banks. In: PICMET Conference. Technology Management for the Global Future. = PICMET 2006 Proceedings. Istanbul, Turkey, 8-13 July 2006. IEEE et al., Piscataway NJ et al. 2006, ISBN 1-89084-314-8 , pp. 1935-1946 ( IEEE Catalog 06CH37823).
• Rajnish Tiwari, Stephan Buse: Mobile Banking: Open to New Technologies . In: Bankmagazin. June 2006, ISSN  1616-0584 , pp. 54–56 (PDF on the research project page; 76 kB).
• Peter Feith: Mobile banking based on finance portals. Bankakademie-Verlag, Frankfurt am Main 2001, ISBN 3-933165-46-6 ( Contributions to the discussion on banking management 20), (At the same time: Frankfurt (Main), University of Banking, Diploma thesis).

Web links

• Mobile banking in Germany: Status quo and current developments (Nov. 2007) (PDF; 90 kB) Technical University of Hamburg-Harburg
• Mobile banking is gaining momentum (04/2010)

Individual evidence

1. ↑ Monetizing Mobile - How banks are preserving their place in the payment value chain
2. ↑ Verdens Første WAP bank from Norge
3. ↑ A third of banks have mobile detection ( Memento of the original from January 28, 2013 in the web archive archive.today ) Info: The archive link was inserted automatically and not yet checked. Please check the original and archive link according to the instructions and then remove this notice.  
4. ↑ Mobile Banking Overview (NA)
5. ↑ Two Factor Authentication For Mobile Banking ( Memento of the original from September 24, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.