Mobile Banking Security: The Call for Technology Standards and Proactive Security Messaging

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