The Intersection of Banking + Technology
Vince Liuzzi, DNB First
THE ADVANTAGES, SECURITY FEATURES, AND FUTURE OF ELECTRONIC BANKING
Today many people use electronic devices to access their finances. Whether an individual does business with a larger national bank or a local community bank, they most likely have access to electronic banking.
Electronic banking encompasses online banking, mobile banking and over-the-phone banking, and enables customers to access their accounts and perform a wide-range of financial transactions at any time.
TOOLS & SERVICES
In addition to 24-hour account access, customers can easily check account balances, review activity and access their statements through electronic banking. Individuals can also securely transfer money to accounts within or outside of their financial institution, pay bills, as well as send and deposit checks. Use of mobile banking in particular continues to increase significantly according to the Federal Reserve’s Consumer and Mobile Financial Services report. The number of mobile phone owners using a
mobile banking app has doubled in the last five years.
And with recent enhancements to mobile banking apps, we’re seeing that customers can now apply for products as complex as a mortgage from their mobile device. Yes, that’s right—people can fully complete an application to purchase a home on their smart- phone or tablet!
In the age of electronic banking, we’re also seeing an increase in phishing scams. To combat this problem, financial institutions and banks in particular, have a multi-factor authentication system in place. This approach adds an extra layer of security, requiring more than one method of authentication that the user must provide to verify a login or other transaction. Many banks also conduct social engineering tests with their employees. When a hacker is unsuccessful, they may try to manipulate an individual into giving up confidential information. These social engineering tests train employees to spot these types of scams and take appropriate action.
Education plays a key role in combating this type of fraud as well. Many banks provide information and education to help customers and some offer free online tutorials around security measures. Being aware of the nature of these attacks can help to ensure that banks and their customers are prepared.
It’s critical that the security features of online banking are balanced with
exceptional customer service. Many tools and services that online banking offers are viewed as conveniences but can also double as anti-fraud measures. For example, customers can set up text or online banking alerts so they’re notified when a transaction or ATM withdrawal deviates from normal spending patterns. Customers can also access their transaction history, at any time, through their bank’s online portal or mobile app to keep an eye out for suspicious charges.
THE FUTURE OF BANKING
As banking becomes more digitalized, financial institutions are paying special attention to improving the customer experience. Customers now have access to more powerful online tools to manage their entire financial portfolio, with a focus on ensuring ease of access and creating a more personalized experience. Biometrics are becoming increasingly popular to help customers access their account information more quickly and to verify their identity and transactions by using human
characteristics as a form of identification. Most smartphones today come with built-in technology that supports the use of biometrics recognition, such as a thumb print sensor. Eye scanning and voice recognition technologies are also being tested for use.
In addition to providing a more user-friendly experience, biometrics can also be used for security purposes as the identifier can never be reproduced, forgotten or shared.
With improved security and ease of use, electronic banking is fast becoming a preferred method of day-to-day banking. However, a big part of overall customer satisfaction is still based on face-to-face banking, as customers continue to visit branches for advice and assistance with important financial decisions. ♦
Vince Liuzzi joined DNB First in 2013 and is responsible for the bank’s retail, consumer and mortgage lending businesses. He was previously Executive Vice President and Region President for a large national bank’s 165-branch network in greater Philadelphia, overseeing sales and service for consumer, small business and wealth management segments. DNB- First.com
Reprinted County Lines Magazine February 2018