22 September 2017
Find out more

US m-banking uptake stalls over security fears - Javelin

22 July 2011  |  8917 views  |  0 Wells Fargo M-banking

Despite soaring growth in the popularity of smartphones, mobile banking uptake has stalled in the US, with security concerns continuing to put people off, according to Javelin Strategy & Research.

In a report based on three surveys with more than 13,000 people, Javelin says there has been a 42% increase in the number of smartphone owners over the last year, with 34% of the population now owning one.

However, the percentage of these smartphone owners that actually use their handsets for banking has stayed fairly static. In 2010 63% had never used mobile banking, compared to 59% in 2011.

Of all respondents, 18% had used mobile banking in the previous 90 days, with a huge variance between customers of different banks. USAA Bank - which has virtually no branch network - comes out top, followed by heavy investors in mobile Citi and Bank of America. In contrast Fifth Third, HSBC and TD Bank have seen little interest.

Security concerns continue to be the major barrier - between 2009 and 2010 the number of consumers who rated mobile banking as "unsafe" or "very unsafe" increased by 54%.

To help tackle this concern, banks should focus, in the short term at least, on browser-based mobile banking rather than applications, says Javelin. In 2010, asked which method they consider most secure, 47% said browser-based, compared to just 23% for downloaded apps.

This represents a big shift from the previous year - when the percentages were nearly the same at 34% for browser and 32% for apps - possibly explained by instances such as the malware attacks in March 2011 on Google's Android Market.

James Van Dyke, president, Javelin, says: "FIs need to get ahead of the problem and focus both on addressing security concerns and responding to consumers' needs around mobile banking. Really listen to consumers and give them what they want."

Comments: (0)

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

Americans want remote deposit capture - Javelin

Americans want remote deposit capture - Javelin

24 May 2011  |  8642 views  |  1 comments
American banks need mobile to attract Gen Y - Javelin

American banks need mobile to attract Gen Y - Javelin

25 March 2011  |  14237 views  |  0 comments
US identity fraud plummets - Javelin

US identity fraud plummets - Javelin

08 February 2011  |  12095 views  |  1 comments
Mobey Forum claims m-banking momentum

Mobey Forum claims m-banking momentum

28 October 2010  |  8140 views  |  0 comments
US m-banking take-up jumps 129% in two years

US m-banking take-up jumps 129% in two years

20 October 2010  |  9874 views  |  0 comments
Set-up issues hampering US m-banking take-up

Set-up issues hampering US m-banking take-up

15 October 2010  |  7146 views  |  1 comments
M-banking taken up by 30% of mobile users - survey

M-banking taken up by 30% of mobile users - survey

06 August 2010  |  10487 views  |  2 comments
Citi admits iPhone app security flaw

Citi admits iPhone app security flaw

27 July 2010  |  10749 views  |  0 comments
Wells Fargo extends m-banking app range; offers text banking at ATMs

Wells Fargo extends m-banking app range; offers text banking at ATMs

29 June 2010  |  10248 views  |  0 comments
M-banking finding favour with consumers

M-banking finding favour with consumers

24 March 2010  |  7718 views  |  0 comments
US m-banking take-up hindered by security and cost concerns - survey

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

08 April 2009  |  9265 views  |  1 comments
M-banking users to hit 900 million by 2014 - study

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

13 March 2009  |  8972 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comvisit www.abe-eba.euvisit www.capgemini.com

Top topics

Most viewed Most shared
HSBC switches on selfie payments in ChinaHSBC switches on selfie payments in China
12750 views comments | 26 tweets | 42 linkedin
Dutch bank sentences teenage DDoS culprit to community serviceDutch bank sentences teenage DDoS culprit...
9578 views comments | 6 tweets | 3 linkedin
Apple P2P payments service nears launchApple P2P payments service nears launch
8278 views comments | 18 tweets | 27 linkedin
AXA launches blockchain to cover late flight compensationAXA launches blockchain to cover late flig...
8075 views comments | 13 tweets | 27 linkedin
SBI Ripple Asia advances on South KoreaSBI Ripple Asia advances on South Korea
7675 views comments | 16 tweets | 1 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job