Two of a Kind: Mobile Banking Needs Mobile Security Author: Eric Everson, Founder - MyMobiSafe.com
As recently as August 5, 2008 I read another report about the limited use of mobile banking in the UK. The MarketWatch article suggested that only about 25,000 used the mobile banking network Monilink in 2007. The problem that banks fear is that all of the infrastructure investment made to support mobile banking has yet to demonstrate its potential as a viable growth market opportunity. This is not a concern merely in the UK as many banks in the USA are facing the same uncertainties of limited uptake.
Why are cell phone users not turning to this technology of mobile banking faster? There are two answers that no matter how hard we try to separate them remained intertwined. The first is rooted in the simple mobile security of the cell phone banking transaction and the other deals with the expectation of banks that users will pay for such services. I won’t get on my macroeconomics soapbox regarding the incredible paradigm shift that the world must embrace regarding the poor business model surrounding “free banking” that the financial industry has created. We all know in our hearts that this era of free banking is on the way out… just take a look at the performance (or lack thereof) in the financial sectors and it is merely a reality check staring back at us all. The reason that banks have failed to propel mobile banking into the mainstream is solved simply enough through a structured handset level security approach.
How does such a monster evolve? Mobile security providers (MSP) need to redefine their product in such a way that allows banks to offer their mobile security solutions (for a residual fee) so that the gateway to the transaction (and all other mobile transactions) is secured. Banks as the centerpiece of this equation will revenue share on the monthly mobile security fee that is to be built in which thus creates unique revenue streams for both the bank and the MSP. The idea is to secure the handset level so that novelties such as mobile banking can be done in confidence. In essence mobile security stands as a viable gateway to overcoming the adoption hurdles of cellular-based innovations such as mobile banking. This creates a win-win dynamic where in the customer, banks, and MSP’s are all being satisfied.
Let’s face it, everyone understands and accepts paying a little extra for security. But when you try to confront that torrid beast of free banking by making customers pay to use mobile banking you will fail every single time. The banks need MSP’s as much as the MSP’s need the banks. Introducing mobile security products into the mobile banking sector is a strategic solution to managing the debt (or better yet… investment) that was created in the infrastructure build-out. We are becoming a world hooked on mobility, so the reality is that mobile banking is here to stay. Slow uptake of mobile banking should remain of little concern with such a plausible conduit as mobile security to lead the way. The freedom to do your banking without being wired to your computer is a beautiful thing; it is just that the customers need to feel the security of the transaction domain first.
Your mobile security guru, Eric Everson – Founder, MyMobiSafe.com
Article in Reference: http://www.marketwatch.com/news/story/gain-insight-how-innovations-unsecured/story.aspx?guid=%7B55BC27C3-0132-49AC-865D-78BB59234C8F%7D&dist=hppr