Technology Risk Of Mobile Financial Services And Management Of It

In recent years, with the rapid development of the Internet and the intelligent terminal,as well as the demand of consumers’ secure and convenient mobile payment is increasing,the mobile banking financial services grow rapidly worldwide and earn widespread concern.Mobile finance services is a general term for financial institutions providing financeservices by means of mobile communication technology. As a combination of electroniccurrency with mobile communication technology, the new services not only allows peopleto deal with a variety of financial services whenever in any place, but also greatly enrichesthe connotation of the financial services and enables the banks to provide customers withboth traditional and innovative services in an efficient and safer way.Datas show that the Mobile banking financial services has a great developmentprospects. However, the security issues are the biggest obstacle to the development of it.The security problem of Mobile financial services has a deep technical background becauseit relies on mobile communications technology, the Internet and other technologies. As aresult, financial institutions must be able to manage the risk of mobile financial serviceseffectively to guarantee security to the customers in order to catch the opportunity.Taking technical risks of mobile financial services as an entry point, the paperdecomposes the process to identify21elements which cause the technical risk. Taking thesecurity requirements of financial consumers and financial institutions into consideration,the paper divides these elements into7categories. The technology risk of mobile financialservices diffuse faster, infect with each other, happen suddenly,more destructive, difficultto manage, interlock with each other, and cause uncertain loss. In response to these risks,the paper use causal theory, systems analysis, to propose on technical, business, law,regulatory, external environment, giving multi-dimensional risk prevention means andcontrol measures. It is recommended that the financial institutions adhere to the principle ofpreparation ahead and cautious first, to establish an effective risk prevention andmanagement mechanisms.