Mobile banking applications enable smartphone and tablet users to do everything from scan and deposit checks to transfer large amounts of money, but many consumers and business professionals remain concerned about the safety of using such apps.
According to an ABC News report, large financial institutions and small start-ups are designing consumer-friendly mobile banking apps with features for reviewing account balances, transferring funds and making payments. The rise of mobile banking is apparent at Charles Schwab, where nearly 40 percent of its customers' checks were deposited using the company's mobile app since its launch in May 2011, the source said.
Although more consumers are using mobile banking applications than ever before, many are still concerned about data security. The report said mobile banking users should refrain from storing critical passwords and account information on their phone and consistently review account activity to detect any potential fraudulent purchases.
"It's not uncommon for a smartphone owner to store password information right on the phone," financial services expert John Burnett told the source. "Anyone picking up the phone with a high school education can start doing business with the bank on their phone."
According to the National Cyber Security Alliance, 32.5 million Americans accessed personal banking data on a mobile device during the second half of last year, up 21 percent from 2010.