A recent report showed that less than 10 percent of U.S. consumers use their mobile phones for banking. The biggest factor: security concerns.

InformationWeek wrote about the report, one created by Javelin Strategy & Research. Entitled “2008 Mobile Banking Security Standards”, among the information gleaned from it was that 47 percent of nonparticipants did not sign up because of security concerns. 73 percent of consumers worried about hackers accessing their phones, as well as the safety of wireless transmissions of data.

More than half expressed concerns about what would happen if their mobile phones were stolen. In some ways, it’s actually heartening to see consumers being concerned about security. There are ways to work on the negative perceptions of mobile banking, with one means suggested was by guaranteeing reimbursement in the case of fraudulent use. More secure login methods such as authentication via means beyond usernames and passwords, as well as e-mail alerts for conditions such as large withdrawals.

It would be a shame for consumers to totally discount the possibility of mobile banking. As the report said, “With a well-designed security program in place, mobile has inherent safety advantages that make it one of the most protected channels for remote banking.” Visa and MasterCard are already piloting mobile programs, with views into entering the mobile applications space.

Both names are known for their zealous endeavors to promote security online for credit card transactions, helping to encourage more consumers to use their cards online. So it’s probably only a step away from making mobile banking palatable – create confidence and perhaps banking via mobile phones might become less daunting for the average Joe.

But making it as safe as possible for the average Joe isn’t necessarily easy. Trying to make something secure and yet effortless to do is a tall order. But if that happy medium of safety and convenience can be found, it just might save a lot of hapless ordinary folks long queue times at the bank.

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Entry was posted on Wednesday, December 31st, 2008 at 4:39 am under Cell phones, Security.

Read more entries by Erna Mahyuni.
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