Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears
- ID: 1848968
- July 2011
- 15 Pages
- Javelin Strategy & Research
Mobile banking adoption has stagnated despite explosive growth in smartphone adoption from 2009 to 2011. In 2009, one in four smartphone owners considered mobile banking unsafe. One year later, 40% of smartphone owners felt the same way. As financial institutions push forward, offering innovative and convenient financial options to a new mobile generation, consumers are left questioning whether security was sacrificed in the rush toward innovation. In the context of the recent infiltration of malware into the Android Market, it is imperative that FIs reassure consumers that mobile security is a priority.
- What is the rate of smartphone adoption?
- What is the growth rate of mobile banking and purchasing?
- What are some factors that are inhibiting the adoption of mobile financial activities?
- How can FIs encourage mobile financial activity?
For this report, Javelin gathered data from three different surveys administered in 2010 - 2011. Each survey collected data from a base of 3,000 to 5,000 consumers, representative of the general U.S. population. They were interviewed on a range of topics including, but not limited to, fraud, security services, and technology adoption.
- For questions answered by all 5,102 consumers in the March 2011 Financial Services Channel survey, the margin of error is &Plusmn;1.37 percentage points at the 95% confidence level. The margin error is higher for questions answered by subsegments. For longitudinal comparison, data from 2009 and 2010 was reweighted to the latest census targets according to the U.S. Census Current Population Survey (CPS).
- For questions answered by all 5,211 consumers in the March 2010 Financial Services Channel survey, the margin of sampling error is &Plusmn;1.39 percentage points at the 95% confidence level.
- For questions answered by all 3,100 consumers in the July 2010 Mobile survey, the margin of error is &Plusmn;1.76 percentage points at the 95% confidence level.
Audience: Financial institutions, mobile banking and marketing departments, credit card networks, credit card issuers, payment processors, mobile banking vendors, mobile payment vendors, mobile network operators, authentication technology vendors, authentication platform vendors. SHOW LESS READ MORE >
- Executive Summary and Recommendations
- Smartphone Adoption
- Stagnation of Mobile Financial Activities
- Security Concerns with Mobile Banking
What is a Killer App?
- Consumers Prefer Mobile Optimized Browser Sites
- Companies Mentioned
Table of Figures
- Figure 1: Smartphone Ownership, 2009 - 2011
- Figure 2: Consumers Who Have Mobile Banked in the Past 90 Days by Primary Bank
- Figure 3: Mobile Banking Use by Smartphone Users, 2010 - 2011
- Figure 4: Purchases Made via Mobile Devices by Smartphone Users, 2009 - 2010
- Figure 5: Smartphone Owners' Perception of Mobile Banking Safety, 2009 - 2010
- Figure 6: Smartphone Owners' Perception of Mobile Banking Channels, 2009 - 2010