Consumers’ ongoing fears about security are dampening their interest in financial institutions’ mobile technology offerings, says a new report from the Deloitte Center for Financial Services.
A majority (61 percent) of the 2,193 consumers surveyed in January 2014 who do not regularly use mobile devices for financial services cited security issues as the main reason. That’s markedly higher than the next most common reason, a preference for doing such business in person or over the phone with a human being.
The survey, conducted by Andrews Research Associates on behalf of the Deloitte Center for Financial Services, shows that more than one-third of respondents were most insecure about transacting financial services business on mobile devices because they don’t trust the security of the Wi-Fi and mobile networks transmitting their data, while 28 percent were primarily concerned about their mobile device being lost or stolen.
For one in five respondents, the factor that most influenced their security concerns was a belief that the risk of identity theft was greater with mobile transactions.
“The financial services industry is entering a new phase in its digital evolution, with mobile technology reshaping customer engagement in a dramatic manner, and increasingly becoming the primary method of a consumer’s interaction with their financial services providers,” Jim Eckenrode, executive director of the Deloitte Center for Financial Services, said in a statement.
“To boost adoption and set the stage for more ambitious applications, companies will likely have to take tangible steps to reassure consumers about the security of their mobile financial transactions,” Eckenrode said.