US m-banking take-up hindered by security and cost concerns - survey
08 April 2009 | 8872 views | 1
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.