August 22, 2016 — Security Concerns Holding Back Mobile Banking Adoption
Ryan Wilk, director at NuData Security, comments on a new survey that says fraud and security concerns are holding back adoption of mobile banking technologies.
The research, carried out by Kaspersky Lab and IDC Financial Insights found that 36% of respondents are not currently using any mobile banking apps. Of these, 74% cited security as the primary reason.
The research also suggested that many people will never adopt mobile applications as their primary banking platform. Nearly one-third of respondents said they do not ever foresee using mobile as the primary channel.
It is security that remains the primary concern, and the main reason people are not adopting mobile banking. The survey found that if there was a more visible way of adding security to mobile banking apps, people would be more open to using them. For example, 85% of respondents said they would increase their usage “to some extent” if there was more security associated with mobile banking, while 44% said their usage would increase “significantly” in the same scenario.
Ryan Wilk, director at NuData Security, said that banks should make sure their security approaches are not just a show for the customers. “What’s concerning to us is the finding that 44% of those surveyed would significantly increase their mobile banking usage with more security. In general, we’d be in favour, provided this security is actual security and not just more “security theatre” as we’ve seen time and time again. By this, we mean that adding more single-modal endpoint security layers are likely to just add more and more friction into the process and have marginal fraud prevention impacts,” he said.
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