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New Report: Consumers Say Security No. 1 Concern in Mobile Banking

A new survey by Monitise found that consumers view security as the biggest concern associated with mobile banking, and security is a major factor in choosing a new bank.

Security fears are the no. 1 barrier banks must face when introducing mobile banking to customers, according to a recent survey conducted by Monitise, which found that 70% of the respondents viewed security as a major concern in mobile banking. The survey also found that 71% of respondents ranked security as “highly important” in choosing or switching banks.

Roughly 90% of users say they enter a user name and password to access mobile banking apps. Approximately half prefer to combine user name/password with knowledge-based answers and visual keys. And 68% indicated biometric features are important to them, while 35% say they are willing to pay extra for those features.

[See Related: 5 Critical Strategies for Mobile Banking Security]

In addition to more security features, consumers between the ages of 35-54, who make between $50-100k, desire real-time alerts on unusual activity, remote check deposit, and the ability to make payments using smartphones.

Consumers value the ability to make mobile payments and fee-less transferring, the results indicated. At least 44% of consumers that use mobile payments do it once a week and 20% don’t want to pay a transaction fee.

Paypal is the most favored payment option for transactions, which may indicate an interest among consumers for digital wallets, if educated about the product, Monitise argues.

Digital wallets are useful for smartphones since the consumer carriers it everywhere, but the survey also found increased desire among consumers to use tablets for banking. 60% of consumers prefer to use tablets for remote check deposit, real-time alerts, mobile photo bill pay, and credit card payments. Forty-one percent want to use tablets compared to smartphones.

About 2,100 consumers and 706 mobile users from different banks were surveyed for this research.

Zarna Patel is a staff writer for InformationWeek's Financial Services brands, which include Bank Systems & Technology, Insurance & Technology and Wall Street & Technology. She received her B.A. in English and journalism from Rutgers University College of Arts and Sciences in ... View Full Bio

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Cara Latham
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Cara Latham,
User Rank: Apprentice
7/16/2013 | 12:41:05 PM
re: New Report: Consumers Say Security No. 1 Concern in Mobile Banking
I'd say that as a consumer, I'd have to agree with this report. It is probably the only reason I have decided against using a mobile banking app. Whenever I need to do banking, I wait until I can use the computer at home, mostly due to my fear of possible malware on my smartphone. Even though I have had no indication that my phone is at risk, I am still wary of entering any bank information on it.
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