A large number of consumers who have not yet adopted mobile banking cite security concerns as the primary obstacle. However, new data shows that many Americans fail to take the necessary steps to protect all of the information already stored in their smartphones.
An NQ Mobile study found that despite being aware of the potential for security breaches, nearly one in three consumers who have lost their smartphone in the past do not lock their phones or impose passcode security measures. As a result, any individual who found the device would have access to any information stored on the phone, ranging from emails, notes, text messages and potentially sensitive data.
"Consumers are entrusting their mobile devices with their most valuable information, and they seem aware of the problems that a loss or breach of security can cause," said Conrad Edwards, Chief Experience Officer of NQ Mobile. "Still, we're not seeing people taking the level of ACTION they should in order to protect themselves."
Banks and credit unions that rely on mobile banking strategies to drive customer satisfaction and acquisition should focus on campaigns that promote mobile security, both on the part of the financial institution and the consumer. For example, banks and credit unions can post information about the encryption and authentication methods they use to ensure that any financial data transmitted through mobile banking is secure. In addition, however, banks should also launch an awareness campaign that discusses the potential risk factors consumers face when they fail to implement passwords and locking mechanisms.