Mobile banking and its association with social networking sites is a new trend emerging throughout the globe. From text messages to net banking and now Facebook and Twitter! The time isn’t far when virtual banking will take over all sorts of cash transactions.
Rajnish Khare, head of digital and mobile banking, HDFC Bank Ltd said that they believe mobile banking is going to be the “in-thing” in future. So, entire focus must be on making banks as mobile or walking in nature as possible.
He seems to be visionary in his approach, reason being that in the US, most of the banking transactions take place through mobile phones. HDFC itself has seen a growth rate of 2000% in mobile banking and with its association with social media streams it looks like the increase will be sooner and faster than ever thought.
Social media banking was initially used by Barclays in the UK but India is nowhere behind! If signed up on Facebook or Twitter, one would just need to enter the correct name and OTP. Facilities like fund transfer, balance enquiry, last 3 transactions’ view, phone recharge and many more just come with it, making lives much easier and quicker. Google+ and Gmail are also great options which allow the users to benefit from these facilities. The ICICI bank app allowed customers to even take loans.
Facilities, easier work, time saving, but security?.... It is still a question mark.
Reports suggest that 90% of passwords used on social networking sites are vulnerable to hacking, way more than netbanking or email accounts. Around 600,000 fraudsters try to hack into Facebook accounts everyday. Last year, 6.5 million LinkedIn passwords were compromised.
As a matter of fact, registering oneself with the social media through mobile apps provides the app an access to ones friends, family, pictures, birthday, hometown, workplace, likes, dislikes and even the details of their friends. Information like this can lead to hacking and security breaches because of the presence of vulnerabilities in the social media apps. Updating apps on certain intervals is suggested but a fully fledged security status is yet to be reached. Also, banks, as per regulations, have allowed the compensation of only INR 10000. But is compensation a good solution?
A threat to one’s privacy is the biggest threat that can be caused, especially where money is involved. As mentioned previously by Appknox, preventive measures are crucial, in this particular case as well because India has a very large user base among these social networking websites and thus it increases our vulnerability the most.