Internet Retailing: Consumers rejecting banking apps because of security – what does this mean for retail?

August 30, 2016 — Consumers rejecting banking apps because of security – what does this mean for retail?

Ryan Wilk, VP at NuData Security, comments on the findings that 74% of those not currently using mobile banking cited security as the main reason.

Consumers are failing to adopt personal banking apps amid security fears, finds a new study in the US and UK, and the knock on effect may be that mobile retailing and mobile payments app uptake could also suffer.

The study from Kaspersky Lab finds that of those not using mobile banking at all today (36%), more than half of them (74%) cited security as the major reason, which could slow the overall adoption of mobile banking services during a time where mobile device usage is exploding.

While security concerns are holding back non-mobile banking users from embracing the convenient, digital self-service solutions on the market, those who are active users of mobile banking today also share the same concerns. Of both, users and non-users of mobile banking, 85% said that they would increase their usage to “some extent” if there was more security and nearly half (44%) of those surveyed said that they would “significantly” increase their mobile banking usage with more security.

Commenting on the lack of trust of mobile when it comes to money matters, Ryan Wilk, director at NuData Security, says: “We’re not at all surprised to see this reluctance on the part of consumers to adopt mobile banking wholeheartedly. It’s entirely understandable given the onslaught of daily stories about breaches, and the growing awareness about the security vulnerabilities of many mobile apps.