Nowadays, there aren’t many activities humans perform without using some form of a computer device. We use computers to talk to people, deliver items to loved ones, and even to keep a check on our bodily functions. As technology is integrated more and more into our daily lives to help make our lives easier, digital banking has emerged as a seamless banking experience that is generally preferred by customers.
In fact, the data comparison website Finder found that towards the end of 2020, approximately 27% of adults in Britain had accounts with a digital-only bank. This shows a 300% increase from the previous year.
Research conducted by individuals from the Nanyang Technological University in Singapore determined that around 40% of customers who use digital banking services, such as mobile banking, believed that security was the most crucial factor for them to use these services.
However, these researchers also found that a greater focus is placed on service quality and system quality by banks, as compared to security, which has led users to be reluctant about using digital banking facilities.
The researchers believe that in order to ensure optimum customer satisfaction, banks must adopt a robust security system for digital transactions and communicate to their customers the steps they’re taking to ensure this. Communication will help customers be at ease whilst using the company’s digital banking app.
The paper also gave a few security suggestions to banks, such as using tools like pop-up messages to warn customers about the potential dangers of using mobile banking tools. Researchers also advised banks to create a policy statement that is both legally sufficient and accessible to its users.
The security threat
Though there have been advancements in companies improving their cybersecurity, the threat of hackers is still very much present and has now expanded onto mobile devices in the wake of the COVID-19 pandemic. Hackers now have another platform that they can exploit, and banks now have to contend with maintaining their cybersecurity budget as well as expanding and improving their digital services for customers.
Achieving transformation while remaining secure
Despite the challenges, it is still possible for companies to expand their operations while also maintaining security. Protective measures need to be adopted alongside having contingency measures in place to deal with any adverse damages that the company could suffer through online attacks.
The Singapore researchers also stated that banks must adopt a security-by-design approach. This comprises a strategic assessment of the risks that befall the company. The optimal cyber risk assessments will contain an analysis of the company’s business, its operations, and capabilities, its policies as well as any financial risk of attacks. These assessments will allow the company to be aware of where they stand and the challenges they face.
It can therefore be stated that the growth potential of online banking facilities, especially in times of minimal contact due to COVID-19, is exponentially high. With this, there is also a need for banks to improve their securities in order to protect themselves from attackers waiting to pounce, as well as to improve their relationship with their customers and ensure optimal satisfaction of their services.