Mobile Banking Still Very Popular, but Consumers Concerned with Security

A large and growing number of consumers are now using their smartphones and other mobile devices to keep tabs on their various financial accounts, but many still feel that they could use some reassurance on the security of these systems.

Nearly all Americans (94 percent) say that mobile banking is easy, and 77 percent say it’s convenient, but at the same time, just 42 percent say that the technology is reliable and 30 percent say that the primary reason they don’t use mobile banking is because of a lack of data protection, according to a new survey from the consulting and technology firm Infosys. Interestingly, only 25 percent of those who regularly use mobile banking features say that security is a concern, but 60 percent of those who do not engage in the activity felt the same way.

“With ever-increasing smart phone adoption rates, it’s perhaps no surprise that interest in mobile banking also is on the rise,” said Ashok Vemuri, member of the board and head of the Americas at Infosys. “We continue to see the business case for technology investments here, yet for many financial institutions, the newly mobile world is still a daunting place. The Infosys study underscores that to get the most ROI, banks must provide the same comfort and trust level across channels – online, in the branch, or on a mobile phone.”

The kind of language used by people who don’t do any online banking is telling, the report said. In all, 45 percent believe that mobile banking is “experimental” and “dangerous” and 38 percent describe it as “scary.” And while 60 percent say information security is the reason they don’t engage in mobile banking, 55 percent share private information on Facebook from their phones.

Nonetheless, consumers are more interested in the service

Despite the concerns of non-users about the security and ease of use for mobile banking services, consumer interest in the new technology is clearly on the rise, the report said. About 60 percent of respondents said their view of mobile banking has improved in the past year, and 61 percent of non-users said they are likely to try it in the future.

However, there are some areas of concern that regular mobile banking users would also like to see addressed, the report said. For instance, while close to 80 percent of those surveyed said they liked the 24-access to their account details, only 48 percent were happy with the speed of the service their banks provided, and just 46 percent were satisfied with the ease of logging into their accounts.

Mobile banking is generally regarded as being extremely secure by experts because of the ways in which lenders encrypt data being sent to and from users. Any time a user sees a lock icon or “https” in the address bar on their mobile Web browser, they can be assured of the transaction’s security.

Posted in Finance
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