Aite Group Warns of Mobile Fraud Risks

A recent Aite Group report, “Mobile Fraud: The Next Frontier”, advises financial institutions (FIs) to prepare themselves to fight mobile fraud. The Aite report, based on a survey of 24 global risk executives, states that while fraud has yet to become common through mobile banking channels, cyber criminals likely have mobile banking and mobile payments on their radar, and many FIs lack fraud protection that equally covers both mobile and online banking programs.

“The most surprising thing in compiling this report was that two-thirds of the respondents said they did not have integrated fraud protection between mobile and online channels at their financial institutions,” said Julie Conroy McNelley, senior analyst and fraud expert with Aite Group.

FIs have not yet built multiple layers of fraud protection for their mobile banking programs, because so far they have not noticed a lot of breaches in that arena – but stiffer fraud measures may soon become essential, if history is any guide McNelley says.

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February 9, 2012 | Analysts, Research and Security-Fraud | 0 Comments

Mobile Banking Is More Secure Than Online Banking

Pete Daffern, Clairmail CEO

This week, Businessweek published a byline article by Clairmail CEO Pete Daffern on mobile banking security and how smartphone technology is reducing the risks. The following is a transcript:

Mobile banking is on the rise, and chances are you’re one of the 52 percent of consumers who have accessed some form of mobile banking in the past six months. Yet perceived security risks remain a hindrance to full adoption of the technology. In truth, accessing your account via your bank’s mobile website or using your bank’s mobile app is as secure, if not more secure, than banking online via PC. Why?

People always know where their phones are: Studies by Morgan Stanley have shown that the average American (91 percent of those surveyed) has his or her cell phone within arm’s reach 24 hours a day. Think about the last time you lost your wallet or credit card. How much time passed before you noticed? Your mobile phone is always on and available.

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February 8, 2012 | Biz Press, CM in the News, mobile banking security, Opinion and Security-Fraud | 0 Comments

Mobile Wallet Contenders (infographic)

Confused by the myriad players and alliances in the growing mobile wallet space? This infographic from Mashable.com may help clear things up:

 

Click here to view the full infographic.

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February 7, 2012 | Analysts, Biz Press, Industry, Payments and Research | 0 Comments

Mobile Banking Will Be the Dominant Customer Interaction Channel by 2015

A new report by PwC indicates that by 2015, mobile banking will overtake branch networks as the dominant channel of customers interaction for financial institutions (FIs), based on strong demand for digital banking products and consumers’ willingness to pay for them.

The PwC report, The new digital tipping point, suggests that banks are missing a vital new source of revenue growth as they have been too slow to respond to the digital innovations that have radically changed business models and redefined customer experience.  This is despite strong demand for digital banking products from consumers and the fact they are willing to pay for these.

PwC conducted research with over 3,000 banking customers across nine developed and emerging markets and found that most consumers are willing to pay up to $15 per month for mobile banking services that offer convenience and value.

The research reveals that there is customer demand for innovative mobile offerings such as social media notifications, an electronic wallet for loyalty cards and financial tools provided by banks, and that these are the products consumers are most willing to pay for.

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February 6, 2012 | Adoption, Analysts, mobile banking and Research | 0 Comments

Mobile Banking Adoption Growing, but Hampered by Security Concerns

A rising number of consumers are embracing mobile banking, though privacy and security concern are hampering even wider growth, according to results of KPMG’s Fifth Annual Consumers and Convergence survey.

KPMG’s survey revealed increasing acceptance of mobile banking and payments:

  • 33% of U.S. consumers conducted banking transactions on a mobile device last year, compared with 19% the previous year and only 9% in KPMG’s 2008 survey.
  • Among age groups, 41% of U.S. consumers age 16-34 conducted mobile banking, compared with 25% for older adults.
  • 23% of U.S. consumers are open to using their mobile phones as a wallet, with 30% of younger adults willing to do so.

Security and privacy concerns remain major obstacles, however:

  • 39% cited security and privacy concerns as blocking their adoption of mobile banking.
  • Respondents specifically cited the potential for credit card information to be intercepted, the threat of unauthorized parties accessing personally identifiable information and even receiving unsolicited promotional material. Read More »
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February 2, 2012 | Adoption, Analysts, mobile banking, mobile banking security, Research and security | 0 Comments

Banks Preferred by U.K. Consumers as Mobile Wallet Providers

A recent study by Lexis, entitled “Wallet Wars”, showed that when it comes to mobile banking, the majority (48%) of U.K. consumers would choose traditional financial institutions (FIs) to operate their mobile wallet services.

Along with being the most trusted provider of mobile payment services, consumers also highlighted FIs as their most influential opinion-formers when considering making a purchase via their mobile.

However, the research also showed that 31% would seriously consider, or even prefer, using an alternate service provider to their existing FI for mobile payment and banking transactions, if given the option. Read More »

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February 1, 2012 | Analysts, Europe, Payments and Research | 0 Comments
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