Security Doubts Hamper Mobile Banking
By Tom Score
• 47% of respondents cited doubts about security
• 41% said they preferred internet banking
• 37% said they preferred to call or visit their bank, and
• 18% said keyboard entry was too difficult on their mobile phone
Yet at the same time, when it comes to their mobile habits, consumers seem to have a conflicted relationship with privacy and security. Many also complain when security mechanisms impede their mobile experiences. Some completely forego security best practices. According to a 2013 study of consumers’ mobile habits by Jumio, four in 10 U.S. adults reported that they did not protect their smartphone with a password or PIN.
Still other users say they feel security steps help instill a sense of trust. In another 2013 study, by Ponemon Institute, close to half of U.S. respondents did not trust systems that only relied on passwords. And 46% reported that they did not use websites that had what they deemed “easy” identification and authorization procedures.
After the massive security breach Target customers experienced over the holidays, and the extremely negative perception it gave the brand, companies offering mobile/internet financial transactions should be feeling a bit concerned. Just like their customers. Speed and convenience versus the risk of personal identity theft? Tough call all the way around.