One of the most newsworthy items surrounding mobile banking is security concerns. But do customers really care? Are security concerns actually making people not use mobile banking?
Let's find out.
Mobile banking is now reaching mainstream in most countries with developing countries seeing some of the best innovations being developed.
Let's find out.
Mobile banking is now reaching mainstream in most countries with developing countries seeing some of the best innovations being developed.
Sales for smartphones also continue to rise creating new mobile banking users in the developing world. We come to expect banks to offer mobile banking services around the globe, and if you don't, you run the risk of turning away customers.
With the rise of mobile banking users, concerns around security are heightening according to a survey by Federal Reserve Board. A list of some of their key security findings are noted below.
With the rise of mobile banking users, concerns around security are heightening according to a survey by Federal Reserve Board. A list of some of their key security findings are noted below.
- Customers rated security of SMS for mobile banking at 38% in 2011 but this has dropped to 34% in 2012.
- Customers also rated mobile browser security at 42% where a year earlier they rated it at 38%.
- Number of customers rating mobile apps as safe also declined from 40% to 35%.
- More customers are unsure as to whether SMS for mobile banking, mobile browsers and apps are safe or not.
- Mobile phone users who use their mobile for banking are more likely to consider mobile banking safe and are likely to know whether they consider it secure or not.
- Overall mobile banking safety (keeping personal information safe) has not witnessed much change.
These findings indicate that as customers use mobile banking more, security concerns are rising and there is a gap in terms of the knowledge of mobile banking security with many stating they ‘don’t know’ if it is safe or not.
Another survey by Jumio Inc "The 2013 Consumer Insights study" found some very revealing insights into whether customers will actually not use mobile banking due to security concerns.
They found many had been subject to online or mobile fraud (a quarter) and although 83% were concerned with identify theft, they would choose the convenience of mobile banking over security. Customers would continue to use their mobile for carrying out banking activities and expect to use them even more in the future.
However, although security concerns appear to not be hindering mobile banking adoption at the moment, it is important that banks address concerns and educate customers as to how they can protect their details and accounts. This will ensure that mobile banking continues to grow and security concerns do not hinder adoption in the future.
To learn ways you as a customer can enhance mobile banking security, or banks looking at ways to improve safeguards in place for mobile banking, please read Mobile banking - is it a stick up?
Alternatively, please contact us for more information.
Another survey by Jumio Inc "The 2013 Consumer Insights study" found some very revealing insights into whether customers will actually not use mobile banking due to security concerns.
They found many had been subject to online or mobile fraud (a quarter) and although 83% were concerned with identify theft, they would choose the convenience of mobile banking over security. Customers would continue to use their mobile for carrying out banking activities and expect to use them even more in the future.
However, although security concerns appear to not be hindering mobile banking adoption at the moment, it is important that banks address concerns and educate customers as to how they can protect their details and accounts. This will ensure that mobile banking continues to grow and security concerns do not hinder adoption in the future.
To learn ways you as a customer can enhance mobile banking security, or banks looking at ways to improve safeguards in place for mobile banking, please read Mobile banking - is it a stick up?
Alternatively, please contact us for more information.
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