25/07/2011
By Scott Thompson
Smartphone use continues to soar, but mobile banking adoption has stalled in the US. Financial institutions need to address consumers’ security concerns, according to a new research report from Javelin Strategy & Research.
The report is based on surveys conducted with more than 13,000 consumers, identifies the real reasons why more consumers aren’t using mobile banking, and presents the steps FIs must take if they want to engage more mobile consumers. Javelin found that the rate of adoption of mobile banking barely budged between 2010 and 2011, despite FIs’ aggressive promotion, and rates of mobile purchasing also stayed the same. Between 2009 and 2010 the number of consumers who rated mobile banking as “unsafe” or “very unsafe” increased by 54 per cent.
“This study is a wake-up call to FIs to look into what consumers really want,” says Philip Blank, managing director, security, risk and fraud. “First and foremost, FIs need to address consumers’ needs around security and communicate to consumers their commitment to creating a safe and trusted channel for mobile banking.”
“FIs need to get ahead of the problem and focus both on addressing security concerns and responding to consumers’ needs around mobile banking,” comments James Van Dyke, president and founder of Javelin. “Really listen to consumers and give them what they want. Our report clearly shows how the consumer prefers to do their mobile banking. That’s where FIs need to concentrate their development efforts to boost interest in mobile banking and - at the same time - respond to consumers’ significantly increased fears.”
