The market watchdog said that mobile banking, including contactless payments, financial transfers and account monitoring, all through mobile devices, will be completely examined in the full review to be published in the first half of 2014.

To endorse the integrity of the UK’s financial system, it will ensure that consumers’ interest must be protected from fraud and complex procedures.

Further, it has decided to review the mobile payment offering of both banks and firms not traditionally associated with banking, such as mobile phone networks, to identify the risk and dictate the rules to deal with them.

FCA supervision director Clive Adamson said 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.

"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."

It will also analyze whether the mobile banking services and products are secure, reliable and easy to use, while making users more aware about the process of making safe payment.

Further, the FCA will also incorporate various measures to boost anti-money laundering systems and controls, while verifying the identity of the payee and recipient.