Mobile Financial Services

Summary:

The Federal Financial Institutions Examination Council (FFIEC) has issued a new appendix, Mobile Financial Services , to the Retail Payment Systems booklet of the FFIEC Information Technology Handbook . The appendix provides guidance to assist examiners in evaluating the risks associated with mobile financial services.

Statement of Applicability to Institutions with Total Assets under $1 billion: This Financial Institution Letter applies to all FDIC-supervised institutions.

Highlights:

• The appendix emphasizes an enterprise-wide risk management approach for effectively managing and mitigating the risks associated with mobile financial services.
• The appendix discusses the technologies used in the mobile delivery channel, elevated risks that may result, and appropriate controls implemented by institutions or third-party providers.
• The appendix contains a work program to assist examiners in determining the risks posed by an institution's mobile financial services and assessing the controls that have been implemented to mitigate those risks.
• An electronic version of the appendix, as well as an FFIEC press release, is available at http://www.ffiec.gov/press.htm .

Suggested Distribution:

• FDIC-Supervised Banks (Commercial and Savings)

Suggested Routing:

• Chief Executive Officer
• Chief Information Officer
• Chief Information Security Officer

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).