News

Consumers worry about security of mobile banking, but do it anyway

May 16, 2013

Among consumers who own smartphones and tablets, an overwhelming majority — 83 percent — worry about identity theft, but ultimately choose convenience over security when it comes to mobile banking.

The 2013 Consumer Insights study, commissioned by credentials management company Jumio Inc. and conducted online by Harris Interactive, found that more than one-quarter of respondents (26 percent) had been victimized by online or mobile fraud (the national average is 20 percent).

Still, nearly half (48 percent) said they use mobile devices for personal finance activities such as checking account balances (48 percent) or paying bills (32 percent). And 60 percent expect to use their device to a greater degree to carry out these tasks in the future.

Following are detailed findings from the Mobile Consumer Insights report:

Regardless of increasing fraud, respondents reported using their mobile devices for important activities.

Nearly one-half (48 percent) of respondents use their devices to check their account statuses or bank balance.
34 percent of respondents have made a retail purchase on mobile.
25 percent have used their smartphones/tablets to make a purchase within a game or app.

The study suggests a direct correlation between level of concern and risk.

Concern over online fraud and identity theft is lowest among Generation Y (18−34 year olds) at 78 percent, yet this group is the most likely to have been a target (32 percent compared with 26 percent overall).
91 percent of women age 35 – 44 said they were concerned about fraud, yet less than one in five (16 percent) has been a victim.

More men than women use their phones for activities ranging from paying bills to grocery shopping, with young men showing highest adoption.

Men (36 percent) are significantly more likely to use their smartphone/tablet for mobile bill pay than women (28 percent). Young men are the most likely (54 percent of those aged 18–34).
Mobile banking is more prevalent among men (51 percent overall) than women (46 percent overall) and most used by men ages 18–34 (58 percent).

Consumers do want greater security, though.

Three-quarters (74 percent) of respondents would like a more secure way to log into accounts than a username and password.
Almost as many people (69 percent) said they'd store their personal payment information online more often if they felt confident that information was secure.

"Users may be willing to accept risk now in favor of convenience, but this tolerance will weaken as fraud continues to grow," said Daniel Mattes, founder and CEO of Jumio. "The industry needs to get on board to protect our customers as much as the customers themselves need to take greater precautions."

The survey was conducted online in the U.S. from March 22–26, among 2,130 adults ages 18 and older.

Read more about mobile banking.