Removing the barriers to mobile banking adoption

August 18, 2016

Mobile banking is easy and convenient, but its adoption rate is still far from ideal. Only two-thirds of bank customers with a smartphone are enjoying the benefits of this banking and payment method. IDC surveyed 1,015 online bank users to understand why.

IDC’s survey included users from the United States and United Kingdom who owned a mobile phone capable of running applications. We present here some of the main findings. The short answer is: The greatest barrier to adoption is security.

Current level of adoption

According to IDC, nearly half of banking customers want to see mobile as a primary communication channel with banking institutions by the end of 2016. Two-thirds hope to see it by the end of 2018. However, just 25% of respondents say that mobile is their primary channel today, and 32% don’t think mobile may ever become their primary channel.

What’s worse, most current mobile banking users abstain from engaging in high-margin transactions via mobile. For example, only 17% are willing to open a new bank account using a mobile device, 45% use mobile payments to complete purchases at a store, and slightly more than 50% use mobile check deposit.

In other words, the full potential of mobile banking hasn’t been exploited so far.

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A key to expansion

What can banks do to boost adoption and usage rates? IDC’s study indicates that enhanced security is the key component. Fully 80% of customers wanted to see some evidence that banks are employing enhanced security measures with their mobile applications, and more than 90% want banks to advise them about security and disable high-risk transactions in the event of a security issue on their mobile device.

In other words, mobile banking users want banks to provide security measures right in the client software. Most of say they would use mobile banking more frequently if they felt security was strong enough.

Our solution

A couple of years ago, Kaspersky Lab launched the Kaspersky Fraud Prevention platform, a solution meant for financial institutions.

An integral part of this platform, Kaspersky Fraud Prevention for Mobile, enhances any banking application with a broad arsenal of protection mechanisms. By augmenting your banking software with those technologies, you will be able to supply your customers with the strong security measures they want. Learn more about Kaspersky Fraud Prevention here.

To get acquainted with complete results of the research, you can download IDC’s whitepaper, Proactive Fraud Prevention Key in Developing and Expanding Next-Generation Mobile Banking, kindly fill out the form below.