Just nine per cent of Americans have used their mobile phones for banking with cost and security concerns presenting major obstacles to adoption, according to a survey from KPMG.
It is fairly obvious that customers don't want to pay for a mobile banking service, and that includes paying for a premium data service on their mobile in order to be able to perform what is generally and accurately perceived as unsafe.
This means no gadgets they have to buy, and that providers have to come up with something much better than what is currently offered in terms of security.
I believe the churn in online banking customers is primarily because of security/privacy concerns although numbers have been boosted through consumers wanting to avoid the costs of going to a bank branch in recession.
I would be unsurprised to see a strong drop off in internet banking and transactions in general in the coming months, certainly at least by the customers who count.
Current approaches are not satisfying the consumer's concerns about privacy and security and free isn't cheap enough for poorly designed products.
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© Finextra Research 2013