Mobile Banking Updates - Jan 31

Mobile Apps Insecure?
"Banks need to improve cell phone banking applications' security or face losing customers frightened by the risk, security experts say. About 80 to 90 percent of mobile phone-based apps that Chicago-based security firm via Forensics analyzes for security flaws fail its free "appwatchdog" tests. The firm recovered usernames, passwords, transaction data-sometimes all of the above-from the mobile apps offered by five banks over popular Android-based devices and iPhones in November assessments."

Many Moving Parts in Mobile Menagerie
"And then there were three. Lots of big news on the mobile bankingfront in the last few weeks, starting with the fact that Qualcomm-owned Firethorn is finally giving up the ghost after struggling to find its way as a carrier-centric mobile banking venture. It's been a fairly ugly ending, but you've got to give a load of credit to BTN Innovator Hall of Fame member Tripp Rackley. Firethorn-which he sold to Qualcomm in 2007 for $210 million in cash-was Rackley's second big score; he took Internet banking pioneer nFront public in 1999, and then sold it to Digital Insight in 2000 in a $439 million stock deal. No word on what Rackley's next move will be, but he spent the years between nFront and Firethorn as an entrepreneur in residence at a Georgia-based VC firm. Stay tuned."

How to Stem the Tide of Mobile Attacks
"The world is going mobile. The ability to offer banking services, including the ability to make purchases, via mobile devices is increasingly becoming a competitive requirement for financial institutions. According to a 2009 report by analyst firm Informa Telecoms and Media, the number of mobile banking transactions will grow to more than 300 billion by 2013 with an estimated value of $860 billion. Research also estimates the number of mobile users conducting regular banking on their devices will rise to an astonishing 977 million by 2013."

Banks boost mobile capabilities
"Americans love their smartphones: an average of 61.5 million Americans owned a smartphone in the final quarter of 2010, according to comScore. And although a lot of bank customers aren't too crazy about banking on those smartphones yet, banks are continuing to push mobile banking for their checking accounts, savings accounts and other products. A new study Corporate Insight, an industry research firm, finds that of the 16 large banks they survey, all but one offer some kind of mobile banking option to accountholders. Here are some of the other highlights from the study:

Mobile Banking Now Available at Numerica
"Numerica Credit Union just announced that mobile banking is available for members who use smart phones or who use web-enabled phones. Numerica members enrolled in Home Banking can now access their accounts from their web-enabled phone, smart phone, BlackBerry, Android, iPhone or iPad."