Is your money app safe?

18 Sep

Using a money management app these days has almost become the norm, but more and more people are becoming concerned about their privacy and the built-in security that these apps offer. As they should!

Saving time and money is the main reason why banking and money apps have become a popular choice not only for corporates but for the average man on the street too. The apps offer a quick and convenient way to manage our money.

The thing is that many of the money apps out there are non-bank apps and because of this, consumers are rightfully concerned about their data privacy.

Is there really a risk?

For the app to do its job, it will need your banking credentials. This means your account details, login details and all those titbits of information we would not usually share with anyone else.

The biggest concern is that because the money app is not directly linked or supported by the bank, will there be any sort of cover or payout if the app is hacked and you lose all your money? App security can get a little hazy here. And how many of us can say that we really read all the small print before we clicked “download and install”.

Why people still take the risk

Money management apps are cropping up across the board. And they aren’t just aimed at helping you bank your money. Some help you send money, apply for a loan, invest capital and more.

While people are worried about what is being done or can be done with their banking data, they are still prepared to take the risk by using the apps. Why? Mainly because these apps help them to save money and time, but also because the banks aren’t offering anything as convenient or cost-saving. And therein lies the real problem. Consumers want a good deal, and these apps are seen as a way to ensure that.

The changes and improvements money app users wish to see

Traders are keen to see money app security greatly improve. They want to continue using the apps, but they want the process to be more transparent. Consumers believe they should have more say about which data these apps have access to. With the seemingly endless data breaches, there has been a general trend towards money app users wanting more control over the information they give out.

Luckily, the banking industry has heard the voice and needs of the people. In fact, a number of banks have hopped on board and have offered to work with money app developers to help users make use of a money app without having to provide their private banking credentials. This isn’t going to be a quick fix or something that happens overnight, but it’s hoped that this improvement/change will be seen within the next year or so.

Not keen to wait a year? Want to keep using your money app?

It’s natural to want to hang onto something that’s making your life easier and potentially saving you money. Assuming you take the necessary precautions there’s no real reason why you should. Here are a few tips:

  • Understand the money app before making use of it. Yes, read the small print. It’s essential. After all, it’s your hard earned money you need to protect.
  • If you aren’t using a specific app and your banking credentials are saved to it, lose it. Get rid of apps that you aren’t actively using.
  • Regularly change your banking passwords and app passwords. This ensures that any old apps that you no longer use will no longer have access to your banking data.

Do you use a money management app? Let us know about it! We’d love a few recommendations.

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