Over the past few months, online security breaches have caused quite a stir. Last month Citibank announced a credit card breach, the CIA website was attacked and hackers took Sony’s PlayStation Network hostage for almost a month between April and May, which affected roughly 77 million users worldwide. Where does it end? Is nothing safe on the net anymore?

That may take longer to answer. But one question that needs answering right now is: what about online banking? If our Facebook or Twitter account gets hacked, we may lose an online friend or have an embarrassing post that needs taking down. But if our bank accounts are hacked, we’ve got a much bigger problem on our hands. Fortunately, thanks to continuously developing security measures (and a lot of investment), online banking has become the most secure medium on the net, and becomes increasingly so by the day. 

Fifteen years ago, it was a different story. Banks commonly charged clients to use their online services, so not only was owning a computer (already a rarity) a necessity, consumers had to pay extra to use it for banking. It was the classic example of a service not yet ripe enough to sell. Similar to the tablet, which was originally introduced about ten years ago, the technology still needed to mature. Furthermore, the luxury of having a computer (and the internet) was not common, so access was an issue. Lastly, security was even further behind computers, so even if you had the money to get a computer, and were willing to pay for the services, chances are your account could easily be hacked.

Today’s services are light years ahead, and there are many reasons to bank online. Steve Laue, Head of Financial Services for Synovate in Greater China, argues that “time-poor customers and easy access is driving this.” For those who barely have a few minutes to eat during the day, they can now check their bank statements, trade stocks and make transfers on their mobiles. It wasn’t that long ago that customers had to accommodate their bank’s daily working hours, many of which were only open until noon or 1pm on weekends when people needed them most.

According to a recent Synovate survey in Hong Kong, whilst the overall number of people using their mobiles for banking transactions is still fairly low (4% amongst regular mobile users and 11% for smartphone users), it is an area widely expected to grow. A vast 80% of respondents perceive banks that offer mobile banking services as keeping up with changing times and meeting their needs. The study also showed that half of respondents think that banks with top notch security protocols and programming will raise their interest in mobile banking, especially amongst the younger segment, with 65% of 18 to 29 year-olds indicating this. This is a segment that, once they adopt mobile banking, will likely utilise it from that point onward.

So security is the remaining issue. How do the banks stop hackers? And if they get in, are we covered? Laue argues that, fortunately, online security systems for financial services are always on the cutting edge. “Banks and software houses put a great deal of investment into protecting consumers. It’s the clients’ responsibility to monitor safety and change PINs and passwords when necessary.” In the world of digital transactions, “If an accident happens, you are more protected day by day.”

Many financial services companies have different ways of assuring security systems that all work in a comparable fashion to keep clients safe. Some offer a key ‘fob’ with a button to push when clients sign onto their accounts. The fob shows a numerical passcode that only works once, and must be entered to access the account. Other companies send an SMS text message to the client with a similar code that must be entered and that will be different with every entry.

Ultimately, there will always be exceptions. Just like you could always get hit by a bus walking out of your home tomorrow morning. Does that mean you won’t leave? No. Because the benefits clearly outweigh the risks. There is always this threshold, and right now for online banking, the relationship is healthy. Five years from now, there will arguably be many more people using mobile banking, which means the security systems will just have to be better. Or vice versa - the systems will continue to strengthen, yielding a greater number of users. Either way, we’ve arrived at a point where mobile banking is easy, free and secure. I’d bank on it staying that way.

For more information, please contact Steven Laue, Head of Financial Services for Synovate Greater China, at steve.laue@synovate.com.