Online and Mobile Device Identification: Is Your Online Authentication Security Strategy Ready to Go Mobile?
- Language: English
- 42 Pages
- Published: October 2010
- Region: Global
Mobile remote deposit capture (mobile RDC) is a nascent product that allows consumers to deposit a check using their mobile phones. Most current solutions require a smartphone, which restricts the reach of this service to 18% of U.S. adults, although one offering is an e-mail-based solution open to a wider audience. One in four consumers desire mobile remote deposit capture, and the most optimal solutions will be integrated into smartphone-based offerings. Mobile RDC for consumer accounts can help retain customers, which can decrease processing, acquisition and switching costs. Direct revenue is likely only with business customers, who have an identified strong desire for the solution. Unless a major financial institution offers it in conjunction with mobile banking, mobile RDC will likely continue to remain a niche product offered to select customers by small financial institutions with low branch numbers and large geographical footprints.
- Will there be consumer adoption, and by whom?
- What type of financial institution will offer the service?
- Can financial institutions gain revenue or cut costs by offering this service?
- What are the fraud risks of adopting the channel, and how can a financial institution control for them?
- How does mobile remote capture work, and what are the technology constraints?
- Which vendors offer the solution and through what medium?
This report is based mainly on data collected online from a random sample panel of 2,779 households in April 2009. The survey targeted respondents based on representative proportions of gender, age and income compared to the overall U.S. online population. Overall margin of sampling error is ±1.86% at the 95% confidence level. This report is also based on data collected online from a random sample panel of 3,000 respondents with mobile phones in July 2009, with a overall margin of sampling error of ±1.79 percentage points at the 95% confidence level.
This report is also based on data collected online from a random sample panel of 5,211 respondents in March 2010, with an overall margin of sampling error of ±1.36 percentage points at the 95% confidence level.
This report is also based on data collected using computer assisted telephone interviewing (CATI) via random digit dialling (RDD) from 5,000 respondents in November 2009. For questions answered by all 5,000 respondents, the maximum margin of sampling error is +/- 1.4% at the 95% confidence level. For questions answered by all 703 identity fraud victims, the maximum margin of sampling error is +/- 3.7% at the 95% confidence level. For questions answered by a proportion of all identity fraud victims, the maximum margin of sampling error varies and is greater than +/- 3.7% at the 95% confidence level.
The majority of Javelin data for online banking financial alerts is based on “online households” vs. “individual consumers.” This is a typical way of presenting online banking data because account management is typically collected on a per household basis. In 2009, the U.S. population was estimated to comprise 306 million people. That includes 232 million adults, 118 million households, and 87 million households that are online. On average, there are about 2.6 people per household. Javelin also collects online banking data using a base of all consumers for comparison purposes. SHOW LESS READ MORE >
Consumers are Comfortable Taking Photographs with Their Mobile Phones
Target Segments by Group and Demographic Variables
By Financial Products Usage
By Small Business
By Financial Behaviors
The Business Case for Mobile Remote Deposit Capture
Higher Deposit-to-Branch Ratio Institutions Have More to Gain
FIs Can Wean Consumers Off Branches with Mobile Remote Deposit
Mobile Remote Deposit Can Alleviate the Root Cause of Switching
Mobile Remote Capture Can Improve Acquisition
Mobile Deposit Capture: Beyond Check 21
Javelin Spotlight: USAA Paves the Way Through Innovation
Table of Figures:
Figure 1: Consumer Use of Mobile Phone Features
Figure 2: Javelin Five-Year Forecast for Smartphone Share
Figure 3: Preference for Mobile Remote Deposit Capture by iPhones, All Smartphones, All Consumers
Figure 4: Desirability of Mobile Remote Deposit Capture by Alerts Recipients, Tech Savvy, Mobile Bankers, Online Bankers and All Consumers
Figure 5: Desirability Ratings of Mobile Remote Deposit Capture by Income
Figure 6: Desirability of Mobile Remote Deposit Capture by Age
Figure 7: Desirability of Mobile Remote Deposit Capture by Self-Employed or Small Business
Figure 8: Online and Mobile Financial Behaviors of Consumers Likely to Use Mobile Remote Capture
Figure 9: Branch to Deposit Ratios Shed Light on Benefits Post Implementation
Figure 10: Actions Taken by Consumers Inside the Branch
Figure 11: Consumers’ Main Reasons for Switching Financial Institutions
Figure 12: Consumer Preferences when Selecting a Financial Provider
Figure 13: Amount of Non-Card Existing Fraud
Figure 14: Image of Endorsed Check
Figure 15: The Costs of Existing Non-Card Fraud
Figure 16: Documents Stolen to Commit Fraud
Figure 17: Image of Delivery Chain
Figure 18: How Consumers Pay Their Bills
Figure 19: Bill Payment Motivation by Consumers Who Desire Mobile RDC
Figure 20: Reasons for Switching Bank by Likely to Use vs. Moderates vs. Unlikely to Use Mobile RDC vs. All Consumers
Figure 21: Remote Deposit Capture Combined with Mobile Remote Deposit Capture
- Mitek Systems
- Bank of America
- Navy Federal Credit Union
- New York Mellon
- Fifth Third
- Sun Trust
- U.S. Bancorp
- J&B Software
- JPMorgan Chase
- Wells Fargo