Insecurity, mobile fraud ‘hinder mobile banking adoption’

Insecurity, mobile fraud ‘hinder mobile banking adoption’

Insecurity, mobile fraud ‘hinder mobile banking adoption’

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Mobile fraud and insecurity in cyberspace have combined to stall adoption of mobile banking by bank customers, a new study has has revealed.

 

[quote font=”georgia” font_size=”22″ font_style=”italic” align=”left” arrow=”yes”]According to the report, ”of both, users and non-users of mobile banking, 85 percent said that they would increase their usage to “some extent” if there was more security and nearly half (44 percent) of those surveyed said that they would “significantly” increase their mobile banking usage with more security.”[/quote]

Findings from the joint report by Kaspersky Lab and  IDC Financial Insights study shows that 36 percent  and 74 percent of respondent cited mobile fraud and  insecurity respectively  as the major hurdle preventing them from adopting new technologies in the banking sector.

The survey included 1,015 individuals with 515 from the United States and 500 from the United Kingdom, and it focused on discerning the opinions and attitudes toward mobile banking among active and non-active mobile users.

mobile payment
mobile payment

While security concerns are holding back non-mobile banking users from embracing the convenient, digital self-service solutions on the market, those who are active users of mobile banking today also share the same concerns, the report says

According to the report, ”of both, users and non-users of mobile banking, 85 percent said that they would increase their usage to “some extent” if there was more security and nearly half (44 percent) of those surveyed said that they would “significantly” increase their mobile banking usage with more security.”

Marc DeCastro, research director IDC Financial Insights.“Consumers are concerned about security on their mobile devices, which has limited adoption of high margin mobile banking and payment activities including account opening, payments and transfers using a mobile phone.”

“As the next generation of online, mobile first and mobile only customers begin to explore digital banking choices, financial institutions that have and promote stronger security will attract and retain these customers more easily than those who do not”, the IDC exec adds.

Kayode Oladeinde Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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