The ancient Greek philosopher, Heraclitus (535 to 472 BC) is believed to have coined the phrase ”The only constant in life is change”. Never a truer word has been spoken. And this adage certainly holds true for banking. Few people younger than 30 can remember a time without digital banking. But is digital banking safe when it comes to our mobile devices?
Of course, we live in a world that is becoming increasingly automated and technology-driven. Online banking started tentatively in the 1980s with some banks testing the concept. It gained broader acceptance during the 90s when the internet became commercialized.
The history of digital banking
New York City, 1981. Four major banks start offering bank from home services to their customers. This is recognized as the origin of modern-day digital banking. A few years later, the Bank of Scotland launched HomeLink, the facility to pay bills and transfer money over the internet.
Nothing much happened in the public eye for the next decade. Behind the scenes, though, it was a different tale. In 1994, the first full-blown internet banking functionality was launched by Stanford Federal Credit Union. The facility was available to all the bank’s customers. Presidential Bank was quick to follow and “the rest, as they say, is history”.
In 1996 we saw the launch of the first internet-only bank, Netbank. Although the bank closed in 2007, Bank of Internet, founded in 1999, is still operating today, the name has recently been changed to Axos Bank.
In 2001, Bank of America passed the 3 million mark in online customers. By 2006, 80% of American banks had internet banking products. The most critical consumer question would have been: “Is digital banking safe?”. As people were reassured, the shift accelerated. Fast forward to 2021. Internet banking is now standard and banks that do not offer it will not stay in business very long.
Mobile payments on the rise
The evolution of digital banking has not been limited to accessing a bank’s website from a computer. As mobile devices have become veritable handheld supercomputers, so banks have adapted to developing apps for these devices. In the quest for convenience, people have embraced the mobile phone to do almost anything.
Banking is now at your fingertips every second of the day. As long as your device has an internet connection, you’re virtually at the bank. People are becoming accustomed to transacting on the spot. Gone are the days of writing a check and waiting 7 days for it to clear. Funds transfers take place on the spot and transactions are concluded then and there. It’s no wonder, therefore, that mobile payments continue to increase.
Is digital banking safe on mobile?
Data security has come a long way over the past few decades. Data security concerns have been around for as long as data has been exchanged in any form. Even in the early days of the internet, data was encrypted and access to computers was protected.
Hacking was, however, the order of the day. Hackers and data security developers were in a constant duel. The hackers triumphed with disturbing frequency. Not surprisingly, consumers constantly asked, “Is digital banking safe?”. Well, all of that has changed now. Tireless work has gone into securing the exchange of data across the internet. Encryption algorithms are now so sophisticated that it would take the world’s most powerful computers hours to decrypt one single message.
So, is digital banking safe? The data you send and receive during an online banking session is indeed safe. There is no doubt about that. Well, let’s say that it is safe while it is in transit. It is scrambled so that, even if intercepted, it cannot be read.
Data safety is not just a one-way street, though. You, the user, also have to take steps to safeguard your data and digital banking activities. At the very least you need to use security software to prevent malware and hacking attempts. Passwords must be strong and never disclosed. To anyone.
Pay attention to the warnings issued by your bank and stay abreast of the latest ways scammers try to catch you out. “Is digital banking safe?”, you ask again. Well, when the security measures provided by your bank are complemented by your own responsible and safe practices, mobile digital banking is as safe as going into the branch. Perhaps safer.
Which industries adopted digital banking on mobile after Covid
Covid brought about a complete revolution in the workplace and in how we conduct our affairs. A lot of what we do in our daily lives has become contactless. People have become more protective of their space and more aware of the risks that were previously taken for granted.
The business has recognized this and implemented systems and procedures to allow contactless transacting. Certainly, the banking and payment processing industry is now in a massive shift to digital banking, particularly on mobile.
The entire cryptocurrency market is digital. Retail trade has enabled online shopping with digital payment processes. Insurance premiums, salary payments, and more are now all paid digitally. There is no doubt; the future of payments is mobile.
Digital transacting can be safe with Elly
Once again, we may be tempted to ask, “is digital banking safe?”. Well, we can answer that with a resounding yes. Most payment processors have adopted comprehensive security measures to protect their users. Elly is no exception.
Elly provides a single device payment platform that includes all the currently available payment methods. Cryptocurrencies, or virtual currencies, are the foundation for the value exchange. Cryptocurrencies are inherently very secure due to the use of blockchain technology.
As far as the payment platform date is concerned, Elly uses Near Field Communication technology with dynamic encryption. This means that the encryption and decryption algorithms and keys change for every transaction. Data that is dynamically encrypted is extremely difficult to decrypt.
A word of caution though, you, yourself, can compromise your digital banking. You need to take measures to protect access to your device. An anti-malware application is a given. A password or fingerprint control is also mandatory. As long as you act responsibly and with due caution, digital transactions are safe with Elly.