April 18, 2024 by Catra Ditya Ramawirawan

In this digital era, financial transactions have transformed to become faster, easier, and more efficient. Now, purchases, payments, fund transfers, and investments can be made with just a few taps, taking only minutes.

However, this convenience also brings its own challenges, particularly concerning transaction security. Therefore, digital banks and digital banking services continue to innovate by developing security features to maintain trust and protect users' data and funds. What are the security features implemented by digital banks in their transactions?

Multi-Factor Authentication

The most common and critical security feature in digital banking transactions is Multi-Factor Authentication (MFA). MFA ensures that the login or transaction process does not rely solely on one verification process, such as a password. This layered verification can be something the user knows (password), something the user possesses (smartphone, token), or something inherent to the user (fingerprint, facial recognition).

Data Encryption

Digital banks implement data encryption to protect users' personal information and transaction details from hacking or unauthorized access. Encryption is the process of converting information into a secret code, so only people with the decryption key can access it. This ensures that sensitive user data, such as account numbers and transaction details, are safe from cyber threats.

Real-Time Transaction Monitoring

Another security feature is real-time transaction monitoring, which allows digital banks to identify and respond to suspicious activities immediately. This system works by analyzing user transaction patterns and comparing them with normal transaction behaviors. If the system detects unusual transactions, the bank can take immediate action, such as blocking the transaction or contacting the user for verification.

End-to-End Security Protection

End-to-end security protection ensures that communication between the user's device and the digital bank's server is fully encrypted from start to finish. This means that the information transmitted cannot be read by third parties, including internet service providers and hackers. This protection is crucial for maintaining the confidentiality and integrity of data during transactions.

Is Neobank Safe?

Before answering this important question, one thing should be clarified: Neobank and neobank apps are two different things.

Cermati, a financial technology company, defines neobank as "an innovation in financial technology that offers branchless digital banking services." Meanwhile, Pluang.com describes neobank as "financial technology (fintech) that offers banking services in a 100% digital format."

The neobank discussed in this article refers to the digital banking app from Bank Neo Commerce.

Okay, back to the bold question above. Is the neobank app safe? This question will be answered by examining the security aspects offered by Bank Neo Commerce and the neobank app.

Commitment to Security and Trust

Bank Neo Commerce has a strong commitment to providing a secure transaction process for its users. As a financial institution supervised by the Financial Services Authority (OJK), Bank Neo Commerce complies with strict security regulations and standards. This demonstrates Bank Neo Commerce's dedication to ensuring the security and trust of users in every transaction.

Implementation of Advanced Security Technology

Bank Neo Commerce utilizes the latest technology to protect user data and transactions. From multi-factor authentication, data encryption, to real-time transaction monitoring, all leading security features are implemented to ensure that every user feels safe while transacting, and importantly, that user funds and data are also protected from unauthorized parties.

Aspect of Transparency

One important aspect of building trust is transparency. Bank Neo Commerce also prioritizes transparency in every service and product it offers. Information about fees, risks, and service terms is clearly communicated to users. It should be noted that this transparency aspect is also strictly regulated by the Financial Services Authority to prevent the public from being misled by marketing language so they can make informed decisions.

Response to Security Incidents

In the digital world, security incidents can occur at any time. What distinguishes a financial institution is not the absence of incidents but the quick and effective response to such incidents. Bank Neo Commerce has robust security protocols to quickly respond to and resolve security incidents, minimizing impact on users and securely restoring services. This proactive approach to managing security risks reaffirms that Bank Neo Commerce is a safe neobank.

Conclusion

Considering its commitment to security and trust, the implementation of advanced security technology, strong transparency policies, and quick and effective response to incidents, Bank Neo Commerce deserves to be labeled as a safe and trustworthy digital banking service.

In the dynamic digital financial industry, Bank Neo Commerce continues to innovate and enhance its security standards to ensure that the user experience is not only comfortable but also secure.

So, does this article answer your question about whether neobanks are safe? Hopefully, you are now more confident in the security aspects of the neobank app!

Come meet your needs with Neo Loan! Just download the neobank app on the PlayStore and App Store and start securing your future with various safe and profitable banking products from Bank Neo Commerce!