Keep the password in the keychain (iOS).
Use SSL to communicate with the server, use POST for the username/password, Pin the certificate.
The webservice URL is public, anyone with a network sniffer will be able to see it.
The major hack will be against the server. Jailbreaking can compromise the app. The keychain is rather immune to jailbreaking.
The main thing for the server is how they handle the user personal information and password. Do not save the password, just a well salted SHA hash of it.
Define the value of the data you are securing from several perspectives: The user's perspective, the value to you,, your reputation, the value to an attacker. Then design the security to the highest level of all perspectives. Keep in mind that high security can be painful to the user. Find a balance.
If you care about security there is only one answer: Have the security designed and vetted by a security domain expert. I always have my designs and code vetted. Such a domain expert will have several years of full-time security experience in this area and possibly a certification such as CISSP. Anything short of this is just a "nice try".
Security bugs are different than normal code bugs. A normal app can have quite a few bugs that are just annoying but still be usable and even a good app. One security bug and there is no security, one security bug is all the attacker needs.