Survey: Consumer fears on cybersecurity slowing mobile banking growth

Share

Written by

mobile
People are growing more afraid of using these devices to bank. (Pixabay)

Just over a third of consumers in the U.S. and U.K. say they don’t use mobile banking applications, just under a third say they never will and nearly three quarters of the hold-outs blame fears about poor security, according to a new survey.

The survey, conducted by IDC Financial Insights for Kaspersky Lab, found that 32 percent of respondents do not ever foresee using mobile apps as the primary way they interact with their bank or credit union. Thirty six percent do not currently use mobile apps, with 74 percent citing security concerns as the major reason.

Both users and non-users of mobile banking said they would use it more if there was better security. Eighty-five percent said that they would increase their usage to “some extent” or more, and 44 percent said they would “significantly” increase their mobile banking usage with more security.

“Consumers are concerned about security on their mobile devices, which has limited adoption of high margin mobile banking and payment activities,” said Marc DeCastro, research director of IDC Financial Insights. “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.”

In April, financial services regulators organized in the Federal Financial Institutions Examination Council released an update to their Examiner’s Handbook, outlining risk management expectations for banks offering financial services through mobile apps.

“Violations of these new mobile security standards have the potential to damage the reputation of banks and may raise the security concerns of customers to an even higher level than they are today,” said Ross Hogan, Kaspersky Lab Global Head of Fraud Prevention.

The survey included 1,015 adults — 515 from the United States and 500 from the United Kingdom — and was conducted in May.

-In this Story-

banking, financial services, IDC, Kaspersky, Mobile & Wireless, mobile apps, News, Tech