Cloud-based technologies such as mobile banking applications are not as safe as consumers previously thought, and as such, they open new opportunities for ATMs. According to the Credit Union Times, mobile applications for banks and credit unions are becoming increasingly susceptible to malware by hackers due to advances in technology. This discovery comes on the heels of Hewlett Packard's extensive research study, Cyber Risk Report 2016. Between 2015 and 2016, the number of malicious applications for Android OS devices rose 153 percent while Apple OS devices saw malware increases of nearly 230 percent.
With safety concerns on the rise for mobile banking applications, ATMs can act as a safe haven for customers to obtain cash when needed and increase profits for the bank by charging processing fees.
Security threats on mobile applications are not a new concept. According to Information Week, mobile applications falter in the safety department due to insecure data storage for multiple reasons. These reasons include vulnerable network connections over insecure network lines such as public wireless internet, weak server-side controls such as limited back-end APIs and broken cryptography and old cryptography algorithms. The older an algorithm or vulnerable connection is, the more likely it is for hackers to steal a consumer's information.
Banks and credit unions can use this statistic to their advantage by providing safe and reliable ATM options for tech-conscious consumers.
New ATMs that include EMV chip card readers are beneficial to both the bank and consumers for multiple reasons. First, the ATM will utilize the safer technology of an EMV card. These cards are safer than magnetic stripe cards because card information is more difficult to unlock.
ATMs can also bring new consumers that primarily use mobile banking into a facility to utilize services. This creates new revenue streams for the bank or credit union while providing necessary cash, check deposits or bill payment for the consumer. Lastly, ATMs are available at all times of day when a consumer most needs them. With these safety advantages and convenient options, ATMs will continue to be a viable option for consumers and financial institutions alike.
May 26, 2016