Abstract
Overview
With the introduction of any new channel or technology such as the use of
mobile devices for banking activity, financial institutions (FIs) must ensure
that the perceptions and the realities surrounding security are successfully
managed, both to ensure adoption and protect customers and the institution
from emerging threats. The key emphasis of this study focuses on the approach
that FIs should take toward consumer security education, as well as the need
for strong collaboration among vendors, banks and carriers for effective
implementation. This report provides a comprehensive analysis of the key
security aspects surrounding mobile banking: the security perceptions,
preferences and behaviors of consumers; actions that financial institutions
are taking to secure the mobile channel; and an assessment of potential
threats. Javelin also delves into the mobile security issues of FIs and
insights of vendors, extracting valuable insight from in depth interviews with
leading US banks and platform suppliers.
Primary Questions
- What are consumers’ security perceptions around mobile banking, and
how should FIs address potential obstacles to adoption based on these
perceptions?
- What real security issues do FIs face, and how are they securing the
mobile channel?
- How serious are these threats and where are they going?
- What are the security advantages/fallbacks of each of the three mobile
banking platforms:(browser-based, SMS and downloadable application)?
Table of Contents
- Overview
- Primary Questions
- Findings and Analysis
- Consumer Outlook on Mobile Banking Centers on Uncertainty and Distrust
- Consumer Security Concerns Present a Major Barrier to Adoption
- Differentiate Security in the Mobile Channel to Address Consumer
Perceptions
- The “Reality” of Mobile Security: Mobile Viruses and Other
Imminent Threats
- Although Mobile Security Is More an Issue of Perception, FIs must Remain
Vigilant of Future Threats across Mobile and other Channels
- Strong Collaboration among FIs, Carriers and Vendors Will Allow for
Efficient Technology Standardization, Seamless Security
- Security Apprehension Instigates Consumers’ Preference for Biometric
Authentication, but FIs Aren’t Worried
- Security Features and Potential Risks by Platform: Browser/WAP,
Downloadable Application, SMS/Text Message
- Consumers Perceive Bank-Provided Downloadable Application as Most Secure
- Interactive Financial Messaging™: Leveraging Real-time Capabilities
of Mobile Banking for Effective Fraud Mitigation
- Related Research
- Appendix
Table of Figures
- Figure 1: Mobile Banking Deemed as “Too Risky” by One-Third of
Consumers
- Figure 2: Nearly Half of Consumers Perceive Mobile Banking as Unsafe
- Figure 3: Consumer Adoption is a Function of Perceived Risks
- Figure 4: Identity Theft Dominates Consumers’ Mobile Banking Concerns
- Figure 5: Consumer Assessment of Threat Levels across Multiple Channels
- Figure 6: Vendors Can Facilitate Communication between FIs and Network
Operators
- Figure 7: Consumer Authentication Preferences for Mobile Banking
- Figure 8: Platform Security Overview
- Figure 9: Majority of Security-Concerned Consumers Prefer Application from
Bank
- Figure 10: Two-Way Communication Allows Customer Participation in Fraud
Prevention
- Figure 11: Two out of Five Consumers Will Select a Platform Based on
Security
- Figure 12: Fewer than One out of Ten Consumers Possesses a Smartphone
- Figure 13: Only 8% of Mobile Phone Users Have Mobile Anti-virus Software
- Figure 14: Consumers Prefer to Obtain Mobile Anti-virus Software from
their Carrier
- Figure 15: Three out of Ten Consumers Believe Mobile Account Access Is Safe
- Figure 16: Consumers Perceive Financial Transactions to be Less Safe
- Figure 17: Among all Channels, Mobile Banking Viewed to be the Least Safe
- Figure 18: Security Is Less of a Concern among Mobile Internet Users
- Figure 19: One out of Five Mobile Internet Users Has Anti-virus Software
Installed
- Figure 20: For One out of Four Consumers, Zero Liability Will Not Boost
Mobile Banking
- Figure 21: Nearly Half of Online Bankers Believe Mobile Banking is Unsafe
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