Page 19 - Consumers and Mobile Financial Services 2014

March 2014 11

Figure 4. What are the main reasons you have decided not to use mobile banking? (Among those who do not use
mobile banking)

My banking needs are being met 89%
I don't see any reason to use mobile banking 75%
I'm concerned about the security of mobile banking 69%
The mobile phone screen is too small 44%
I don't have a smartphone 44%
I don't trust the technology 35%
It's too difcult to use mobile banking 17%
I don't do the banking in my household 12%
Bank charges for mobile banking 7%
I don't have a bank account 4%

timing of their adoption of mobile banking was addressed, their responses largely mirrored those of
driven by their bank starting to offer the service. current users. Checking financial account balances or
recent transactions was the most commonly cited
Among those consumers with mobile phones who do (39 percent), followed by receiving text message alerts
not currently use mobile banking, several reasons for from their bank (29 percent), transferring money
not using the service predominate—namely, they between accounts (27 percent), depositing checks
believe that their banking needs are being met with- electronically (26 percent), and making bill payments
out mobile banking (89 percent), they don’t see any (25 percent). However, 51 percent of those who do
reason to use mobile banking (75 percent), and they not use mobile banking indicated that they had abso-
are concerned about security (69 percent) (figure 4). lutely no interest in performing any mobile banking
The small size of the mobile phone screen and lack of activities.
a smartphone are each cited by 44 percent of con-
sumers as reasons they do not use mobile banking.
Less commonly cited reasons include a lack of trust Mobile Payments
in the technology to process transactions properly
(35 percent) and the difficulty associated with using The Federal Reserve survey defined mobile payments
mobile banking (17 percent). as “purchases, bill payments, charitable donations,
payments to another person, or any other payments
Consumers who expressed concerns about the secu- made using a mobile phone. You can do this either
rity of mobile banking were asked to specify what by accessing a web page through the web browser on
aspect was of greatest concern. Some reported fears your mobile device, by sending a text message (SMS),
of data interception (25 percent), phone “hacking” or by using a downloadable app on your mobile
(12 percent), and lost or stolen phones (8 percent). device. The amount of the payment may be applied
Other consumers’ areas of greatest concern were to your phone bill (for example, Red Cross text mes-
someone using their phone without permission to sage donation), charged to your credit card, deducted
access their account (5 percent), companies misusing from a prepaid account, or withdrawn directly from
personal information (3 percent), and malware or your bank account.”
viruses being installed on their phone (2 percent).
However, the most common response was that they The use of mobile payments continues to be less
were concerned with all of those security risks occur- common than the use of mobile banking. Based on
ring (45 percent). the responses to the broad definition of mobile pay-
ments listed above, only 17 percent of mobile phone
When consumers who don’t use mobile banking were users report that they made a mobile payment in the
asked what mobile banking activities they would be past 12 months, up slightly from 15 percent in 2012,
interested in performing if their concerns were and 12 percent in 2011. However, rates of mobile