City regulator to review mobile banking

Published by Laura Whitcombe on 28 August 2013.
Last updated on 28 August 2013

Mobile phone and globe

Mobile banking - including contactless payments, financial transfers and online account access using smartphones and tablet computers - is to be reviewed by the Financial Conduct Authority (FCA) in the first half of next year.

The FCA will concentrate on fraud and security, as well as the risks of interruptions to mobile banking services as a result of systems failure or IT blips that freeze customers out of their accounts.

It will also look into anti-money laundering systems and controls.

The City regulator hopes the review will encourage mobile banking providers - high street banks and firms not traditionally associated with banking, such as mobile phone networks - to ensure their products and services are secure, reliable and straightforward to use.

Clive Adamson, director of supervision at the FCA, said: "Mobile banking is an exciting development in financial services, with increasing numbers of consumers attracted to the convenience of banking on the move. With the market growing, now is the right time for us to take stock and, as part of the FCA's forward looking approach, to ensure that consumers are appropriately protected."

FCA advice when using mobile banking

  • Reduce the risk of fraud by making sure should you lose your phone, someone else can't easily gain access to your bank account. Always set a passcode on for your handset.
  • Take extra care when typing on small keypads to enter correct account details when making payments.
  • Protect your phone against the possibility of downloading malware (malicious software) or viruses when loading a mobile banking product by using appropriate internet security measures. Don't open links from junk mail.

Have you had a bad experience of mobile banking? If so, share your story in the comment box below.

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