27 July 2016
Find out more

US m-banking take-up hindered by security and cost concerns - survey

08 April 2009  |  8722 views  |  1 D600 mobile

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.

The poll of over 500 people shows 85% of respondents believe mobile banking is important but they do not want to pay for it. Of those who have not used m-banking, 48% cite security and privacy as the primary reason.

The survey also highlights a lack of awareness on mobile banking, with 68% claiming their financial institution does not offer the service.

However, despite the pricing and security concerns, 19% say they are at least "somewhat likely" to use their mobile device for online banking in the next 12 months, with seven per cent even willing to pay a nominal fee.

The survey also reveals concerns over mobile payments, with 66% of respondents saying they are not comfortable using their handsets for financial transactions.

A massive 95% say they have never made a purchase from a vending machine using their mobile device. The same percentage say they've never made a purchase through a retailer's mobile Web site.

However, Mitch Siegel, director of payment advisory services, financial services practice, KPMG, says mobile banking and payments could yet take off.

"With high mobile device penetration rates, US consumers are accustomed to using the mobile channel to access data. And it may only be a matter of time before they grow comfortable with using - and potentially paying a premium to use - the mobile device for browser-based and point-of-sale, 'contactless' financial transactions," says Siegel.

The survey contrasts with a poll released by vendor Fiserv in September which found that around three quarters of US customers would consider using mobile banking services if offered.

Comments: (1)

Dean Procter
Dean Procter - Transinteract - Sydney | 11 April, 2009, 07:27

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.

Be the first to give this comment the thumbs up 0 thumb ups! (Log in to thumb up)
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

M-banking users to hit 900 million by 2014 - study

M-banking users to hit 900 million by 2014 - study

13 March 2009  |  8642 views  |  0 comments
Mobile banking numbers to hit 150m by 2011 - report

Mobile banking numbers to hit 150m by 2011 - report

14 January 2009  |  7373 views  |  0 comments
US small businesses want mobile banking - Aite

US small businesses want mobile banking - Aite

03 December 2008  |  5012 views  |  0 comments
Americans switching on to m-banking

Americans switching on to m-banking

09 September 2008  |  7555 views  |  0 comments
Bank of America signs one million to m-banking

Bank of America signs one million to m-banking

11 June 2008  |  7280 views  |  0 comments
M-banking set to grow in Western Europe - Celent

M-banking set to grow in Western Europe - Celent

09 May 2008  |  8975 views  |  0 comments
Bank of America clocks up 500,000 m-banking customers

Bank of America clocks up 500,000 m-banking customers

28 November 2007  |  9126 views  |  0 comments
US m-banking numbers to soar - TowerGroup

US m-banking numbers to soar - TowerGroup

14 November 2007  |  9025 views  |  0 comments
US consumers shun mobile payments

US consumers shun mobile payments

05 May 2006  |  6722 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit VocaLink.comVisit www.abe-eba.euVisit capgemini.com

Top topics

Most viewed Most shared
satelliteContactless Bitcoin startup Plutus Tap &am...
9430 views comments | 9 tweets | 4 linkedin
MasterCard agrees £700m VocaLink acquisitionMasterCard agrees £700m VocaLink acqu...
9302 views 14 comments | 32 tweets | 38 linkedin
Apps crush internet for UK banking loginsApps crush internet for UK banking logins
8033 views comments | 19 tweets | 25 linkedin
hands typing furiouslyHow machine learning can cut costs on tran...
6003 views 0 | 9 tweets | 3 linkedin
Thomson Reuters and Imperial College form fintech and regtech research partnershipThomson Reuters and Imperial College form...
5991 views comments | 29 tweets | 16 linkedin

Featured job


Brussels (Belgium) or Paris (France)

Find your next job