With great power, comes great responsibility. And when it comes to the mobile banking industry, protecting consumer data should be at the top of your organization’s list.
Banking applications and mobile technology have come a long way in the last decade. And while the FinTech industry has adapted to these new technologies and how their customers prefer to utilize them, protecting consumer data security is one area where many businesses have failed to grow and expand.
Data Breaches: Eroding Consumer Trust
The world as we know it is becoming increasingly more data driven. This makes the FinTech industry all the more appealing not just for businesses, but also for cyber criminals.
Much like the financial world, cybercrime has become its own industry. Each year in the U.S., an estimated $3 billion of revenue is lost due to cybercrime. And along with the growth of this new type of crime, is a growing knowledge among consumers about how their data is being stored and used.
If the Facebook breach has shown us anything, it is that consumer trust is crumbling. And with it, customers are becoming increasingly more empowered and knowledgeable about how their data is being used by businesses. Ultimately, it all adds up to how crucial communication and transparency is when it comes to your customers and how you store, secure and use their information.
“The sheer size of the global e-commerce market — estimated to be worth U.S. $1.2 trillion per year — makes it a prime target for cyber criminals.” — Deloitte
Increasing Data Protections for Consumers: The New Norm
New legislation from the European Union has many businesses in the United States on its toes, as it could pose significant implications on how regulatory bodies will handle the misuse of customer data going forward — which would directly impact the banking industry.
The General Data Protection Regulation (GDPR) is legislation that will protect the information of privacy for consumers within countries of the European Union (EU). If regulatory bodies in the U.S. decide to follow suit, it could especially disrupt the mobile banking sector, where a scores of customer data is constantly transmitted and stored.
There is no shortage of cyber criminals looking for weak-points in mobile applications and technology. It has become increasingly important to ensure your applications are secure in order to preserve your business’s reputation. In today’s digital-driven world, one data breach can be catastrophic for your business. It only takes one breach or leak of customer information to cost your entire company millions, or worse, a lifetime of trust.
Why Protecting Consumer Data Must be Top of Mind
There’s no question that apps have changed the way many of us do business, as well as how we engage with our consumers. But where mobile applications offered convenience and functionality, it has also rendered us vulnerable to data breaches and hacks.
According to Deloitte, 73% of consumers say they would reconsider using a company if it failed to protect their personal data. And approximately ⅓ of consumers would close their online account or stop dealing with a business they believe is responsible following a data breach.
Protecting consumer data and information is no longer a job solely reserved for the IT department. Business leaders and executives must be aware of risks that can compromise data and security when it comes to your tech. App security is now a common standard — not a feature or special benefit. Despite this, many businesses (50%) do not have a budget allocated for mobile application security.
One of the best ways to help protect your customers information is to be proactive in preventing cyber attacks, rather than being reactive. Running tests on your mobile applications can help ensure customer data security, and reveal vulnerabilities that you might not have known about otherwise.
E-commerce and new, digital currencies from Bitcoin to blockchain has exploded across businesses and industries. Business models are changing, as are business to consumer relationships.
Currency, how we exchange and transfer money and data have all gone digital. As a result, a myriad of new ways to steal money and information has changed. And businesses need to be able to adapt early and move quickly to find solutions.
Data is a crucial part of any business, and the importance in how we secure that information will only continue to grow. And with it, so will cyber security risks and crime.Protecting consumer data and information is no longer a job solely reserved for the IT department. Business leaders and executives can learn about emerging technologies in cybersecurity at Mobile Payments Conference 2018.