Mobile banking users want more security for their transactions

These days, mobile banking is becoming increasingly popular among consumers who want to manage their various financial accounts while they’re on the go, but many still have lingering fears over adoption because of the perceived security risks involved.

New data from Javelin Strategy and Research shows that consumers have the acute desire to gain more control over their mobile banking accounts, according to a report from Bank Info Security. In particular, they want to be able to act and respond when they believe they’ve been hit by an incident that results in fraud via their mobile devices. And because of this, it’s incumbent upon the financial institutions developing these mobile banking platforms to give users more control over their accounts while simultaneously making sure they’re safer.

Unfortunately for consumers – and likely also for banks, which are incurring considerable costs to roll out these account management options – little has been done to address these concerns, the report said. Jim Van Dyke, president and founder of Javelin, notes that if banks really want consumers to dive into mobile banking wholeheartedly, they will have to be more responsive to consumer needs, and more willing to quickly address the existing security concerns.

“We talk a lot about what can go wrong with mobile security: how people can be victimized and businesses can be victimized through mobile transactions,” Van Dyke told the site. “People worry about lost phones and the fact that most mobile devices are not inspected for malware. There are any number of things that can go wrong. (But) what we’ve been saying from the beginning is that mobile is also the way that things can go more right and be safer as well.”

Banks slower to adapt to changes

Mobile security is becoming more of a concern for banks as technology improves as well, the report said. Van Dyke noted that three years ago, financial institutions met about 79 percent of the fraud prevention capabilities that Javelin recommended. But as technologies kept improving and the company continued to raise security standards, banks lagged behind. Last year, banks met just 62 percent of qualifications, and now that figure stands at just 54 percent.

As mobile technology continues to improve and consumers rely more on their portable devices to manage aspects of their daily lives, it can be important for all types of companies to make efforts to keep up. Often, adoption of these new technologies may be slow, but the only way to reduce these concerns is to allow time to pass, and let consumers come to the realization of the security capabilities of mobile banking and other, similar technologies, on their own. It’s generally believed that once adoption of these programs takes hold on a widespread basis, more will be likely to start using them regularly, and that could be a boon to financial institutions.

Posted in Finance
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