The full review will be published in the first half of 2014, taking a closer look at mobile banking, which includes contactless payments, financial transfers and account monitoring via mobile devices such as smartphones and tablets. This way, the watchdog aims to gain a better understanding of the measures currently in place as banks develop new products aimed at mobile devices.

Smartphones and tablets are viewed as increasingly important platforms for the delivery of banking services, with many banks having already developed mobile banking apps. Interest has also increased around mobile payments, with recent research from the UK Payments Council forecasting that the number of mobile transactions made in the UK will grow from 356 million in 2012 to around 1.5 billion in 2022.

However, as mobile payments and banking continue to gain popularity, the FCA warns that the banks delivering mobile services need to ensure they have “robust” systems and technology in place to ensure customers are protected. 

For example, the report mentions that with firms under commercial pressure to launch products quickly, products and services could be released without sufficient testing. This could impact on the public's willingness to use mobile services, if not addressed.

"There is a risk that an IT failure could interrupt services, preventing access to mobile banking, limiting customers’ access to their money and undermining consumer confidence in these services," the report stated.

As such, the FCA has set out areas of potential risk, which banks should be paying particular attention to. These include fraud, security issues such as malware and viruses, technology risks and interruption to service, consumer awareness and last but not least, anti-money laundering systems and controls.

The regulator added that malware being delivered through mobile apps is an "important risk" for firms to consider, highlighting problems around financial loss as well as the potential to undermine consumer confidence in mobile banking.

"Mobile banking is an exciting development in financial services, with increasing numbers of consumers attracted to the convenience of banking on the move. With the market growing, now is the right time for us to take stock and, as part of the FCA's forward-looking approach, to ensure that consumers are appropriately protected," said Clive Adamson, director of supervision at the FCA.

"By publishing these initial thoughts we want to make sure that the industry knows exactly what we’re looking into, and consumers have a clearer idea of some of the potential risks," he added.