Tag: mobile banking apps

Customers at Bank of America most willing to pay for mobile banking

| March 30, 2015

According to a new study, 33 percent of the people with accounts with that institution are willing to pay a fee.

The results of a study conducted by research company SNL Financial have now been released and they have shown that it is the customers of the Bank of America that are most willing to pay an additional monthly fee in order to have access to mobile banking features.

This shows that there are some customers who would be willing to pay to use a mobile app from their lenders.

The research took into account the responses of customers from nine large banks across the United States. Among its questions was whether or not the respondents would be willing to pay a monthly fee of $3 in order to be able to continue the use of their mobile banking apps. Among the customers from the Bank of America, 33 percent said that they would be willing to pay the additional fee to use the smartphone app from their bank. That was the highest percentage of any of the bank customers that were surveyed. In second place was Citigroup, from which 31 percent said that they would be willing to pay that same fee.

The report did not suggest why that specific bank’s customers were more willing to pay for mobile banking.

Mobile Banking - Bank of America Center in Austin TexasIn terms of the other seven banks that were involved in this mobile apps study, the percentage of customers who said that they would be willing to pay an additional $3 per month in order to use the application were as follows:

• 29 percent – U.S. Bank
• 26 percent – TD Bank
• 25 percent – USAA
• 24 percent – Wells Fargo
• 24 percent – Chase Bank
• 22 percent – PNC Bank
• 18 percent – Capital One

This could be some very useful insight for banks, which are currently facing an ongoing time of low interest rates and which have been facing a struggle in finding ways to boost their revenues and ensure their growing profitability. Equally, banks have been observing a growth in the number of their consumers that have been embracing mobile banking features.

FBI issues warning against mobile banking

| December 17, 2014

An official from the Federal Bureau of Investigation has cautioned consumers about the “new and highly sophisticated danger.”

A top FBI official has now released a statement to consumers that warns them of the “new and highly sophisticated danger” that is associated with the risks and vulnerabilities in mobile banking.

As a growing number of people look to mobile payments and wallets, the security risks are also rising.

According to the FBI’s Cyber Division assistant director, Joseph Demarest, “Vulnerabilities in mobile banking pose another new and highly sophisticated danger, as mobile banking vulnerabilities may exist on mobile devices that are not patched, and malware can be developed to specifically target the use of mobile devices.” Demarest made this statement as a part of prepared testimony that he presented in a Senate Banking, House, and Urban Affairs hearing on cyber security that was held last week.

There are many different threats to security, but malware is very high on the list in compromising mobile banking apps.

Mobile Banking Warning - FBIDemarest specifically pointed out the vulnerability that exists in the malware called Zeus-in-the-middle, which is a mobile version of the malware threatening PCs and laptops called GameOver Zeus. The original was exceptionally sophisticated and was one of the most challenging malware types that “the FBI ever attempted to disrupt,” said Demarest.

The GameOver Zeus malware was created to swipe the banking credentials that could be used by cyber criminals to be able to either create or redirect wire transfers in order to send the funds to bank accounts located overseas. More than 1 million computers were infected by that malware, worldwide. It led to an estimated loss of more than $100 million.

Although the mobile security threat version of that malware, Zeus-in-the-Middle, has not yet caused the same degree of loss or damage as its PC based counterpart, the fact that it exists at all should be seen as a reflection of the kind of risk that is present and growing in mobile banking and other smartphone and tablet based platforms. These vulnerabilities can make their way into devices by way of infected apps, speak phishing emails, and a number of other pathways.