May 21, 2014 -
The survey found that 72 percent of respondents would welcome the use of biometric identification, such as fingerprints or eye scans, to enable a mobile device, such as a tablet or smartphone, for financial transactions.
For banking security, over half of survey respondents endorsed “pre-clearance” of a limited number of people who could receive a limited dollar amount of funds vis-a-vis mobile payment. Two-thirds of respondents also supported leveraging a mobile device’s GPS for real-time, location-based fraud sensing and prevention.
Anaylsts at Deloitte who authored a report based on the survey findings concluded: “Implementing such concrete security measures, then calling attention to such efforts in advertising and social media campaigns designed specifically to address such concerns, could perhaps help overcome lingering consumer hesitations about accessing personal financial information or transacting financial business over smartphones and tablets.”
Despite consumer concern over mobile device security in the financial sector, the survey found that 63 percent of smartphone users had interacted with their bank through a mobile app.
While more respondents have used apps for banking, less than half of that percentage have used apps for insurance and investment management. Among insurance customers, approximately three-quarters of survey respondents stated they did not use mobile devices to display an insurance card or file a claim. Indeed, the survey found that 65 percent of respondents with a life insurance policy were not sure whether their carrier offered a mobile app. Sixty-three percent of those with homeowner’s or renter’s insurance, as well as 57 percent of auto insurance consumers were also not aware of mobile app options.
For investment management and brokerage customers, more than half did not check their balances or positions on mobile devices, while 80 percent revealed that they did not trade securities through mobile apps. Nearly half of survey respondents were also not sure whether their mutual fund, retirement account, or investment account providers offered mobile apps.
In terms of value, 39 percent of those surveyed characterized the ability to deal with their bank on a mobile device as extremely or very important, versus only 23 percent for investment-related activities and just 19 percent for insurance.
Based on these findings, Deloitte analysts conclude that: “Financial services companies should look for ways to use the increasing ubiquity of mobile technologies to cultivate deeper customer engagement and boost brand loyalty.”