Smartphones and other mobile computing devices are being widely adopted globally [1].The increasing popularity of smart devices has led users to perform all their day to day activities using these devices [2]. Hence, M-banking has become more convenient, effective and reliable [3]. It is extremely necessary to provide the security services including; confidentiality, integrity, and authentication between the financial institutions" servers and the mobile device used by the customer, as their communications are through unsecured networks such as the Internet [4].Users" confidential information may be at risk due to fixed valuesbased security schemes, one level authentication, separate hard token-based authentication, hardware stealing, and Android-Based attacks. This paper specifies a comprehensive sought of how M-banking schemes can be assessed. Also it introduces a solution to mitigate most of these risks.

Confidentiality is a security service that keeps the information from all but those authorized to have it. It needs an efficient cryptographic algorithm. Stream cipher is considered a very important class of symmetric encryption algorithms used to achieve that goal. Its basic design philosophy is inspired by the one-time-pad cipher, which encrypts by XOR'ing the plaintext with a random key. However, the need for a key of the same size as the plaintext makes the one-time-pad impractical for most applications. Instead, stream ciphers expand a given short random key into a pseudo-random key stream, which is then XOR'ed with the plaintext to generate the output ciphertext. This paper suggests a nonlinear balanced stream cipher algorithm which provides high nonlinearity, high linear complexity, high correlation immunity, large Hamming Distance, long key period and good randomness properties exploiting consecutive nonlinear functions. This algorithm is then implemented on a FPGA Kit using VHDL to illustrate its applicability to modern communication systems such as smart phones and PDAs.