UK banks' digital services evaluated: Top and bottom performers uncovered
In the rapidly evolving landscape of digital banking, security is paramount. With the rise of online scams and fraudulent activities, it's essential to choose a bank that prioritizes safety and employs advanced security measures. According to a recent report by Which?, the following banks stand out as the safest options for online and mobile banking in the UK.
Top Performers in Online and Mobile Banking Security
Monzo
Monzo, a fully regulated bank in the UK, has set new standards in online banking security. With features like biometric logins, daily transaction limits, easy card freezing, and advanced fraud protection, Monzo offers a secure platform for customers. The bank also provides protection from phone fraud through an in-app Call Status feature to verify genuine calls, and added security controls to protect large transfers or savings withdrawals. Monzo is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000 per person, increasing customer confidence in fund safety.
Royal Bank of Scotland (RBS)
While specific test details were not found, the Royal Bank of Scotland (RBS) offers a strong digital banking platform with competitive mobile app functionality and integration with NatWest, implying robust online banking features and security practices. RBS is regulated by the Financial Conduct Authority (FCA) and is assumed to have FSCS protection.
Wise (not a bank)
While non-bank financial platforms like Wise offer 2-factor authentication and other safety features, they differ from banks like Monzo in that they are not covered by the FSCS scheme. Instead, they protect customer funds through safeguarding measures with top-tier financial institutions.
Growing Threats and the Importance of Security
Banking in the UK faces growing threats from sophisticated mobile malware and AI-powered attacks. This underlines the importance of banks employing advanced cyber defense strategies, ongoing penetration testing, and multi-layered security approaches.
Room for Improvement
Despite the progress made by many banks, there are still areas for improvement. For instance, Virgin Money's mobile banking app was initially rated the poorest, but significant improvements have been made, resulting in a 67% rating. Barclays scored 78% for safe online banking, but it allows customers to access their accounts through multiple browsers, IP addresses, and devices, which Which? warns could potentially provide criminals with loopholes to target their money.
In conclusion, for consumers prioritizing safe online and mobile banking, fully regulated banks like Monzo, with proactive and innovative security measures validated through independent assessments and regulatory oversight, are currently among the safest options in the UK market. It's crucial to stay vigilant and choose a bank that prioritizes your security and peace of mind.
- In the digital banking landscape, Monzo, a UK-regulated bank, is recognized for its exceptional security measures, offering features such as biometric logins, daily transaction limits, and advanced fraud protection.
- The Royal Bank of Scotland (RBS), though specific testing details are not available, is assumed to have a robust digital banking platform due to its strong mobile app functionality and integration with NatWest.
- Non-bank financial platforms like Wise provide safety features such as 2-factor authentication, but they are not covered by the Financial Services Compensation Scheme (FSCS), unlike banks.
- Arising threats to the UK banking sector from mobile malware and AI-powered attacks necessitate advanced cyber defense strategies, ongoing penetration testing, and multi-layered security approaches from banks.
- While many banks have improved their security, there's room for improvement; for example, Virgin Money's mobile banking app initially received a poor rating but has improved significantly, and Barclays, though rated well, has potential loopholes in allowing customers to access their accounts through multiple browsers and devices, which might be exploited by criminals.
