June 15, 2015 -
Telstra Global released a new report that reveals the majority of US consumers using mobile banking applications prefer their mobile devices feature biometric authentication instead of passwords and usernames.
Titled “Mobile Identity – The Fusion of Financial Services, Mobile and Identity“, the report states how smartphones have become the primary channel used by Gen X and Gen Y to access and manage their finances, which has shifted the expectations of how financial institutions ought to manage mobile identity.
For the past six months, Telstra Global surveyed consumers and banks all over the world in an effort to understand how consumer interactions with smartphones are impacting financial institutions.
The report found that two-thirds of US consumers feel that biometric authentication would be more secure and help decrease the risks of fraud.
One in four US consumers stated that they would even consider sharing their DNA with their financial institution in exchange for a more simplified authentication process and securing their financial and personal information.
The study also found that more than half of US consumers cite the security of their finances and personal information, along with their institution’s reputation for security as the most important criteria when selecting a financial institution, replacing the previous top factors of interest rates and ease of accessing funds.
Meanwhile, the research found that less than half of US consumers were ‘very satisfied’ with their institutions’ authentication methods, with one-third of respondents stating that they would be willing to pay an additional USD$17 per year for more advanced mobile security measures.
“Our research shows consumers are using their mobile banking applications in some really cutting edge ways, so they’re expecting much more than ever before from their financial services providers in terms of security, innovation and functionality,” said Rocky Scopelliti, global industry executive for banking, finance and Insurance at Telstra. “In fact, Gen X and Gen Y have become so dependent on their smartphones to access their financial services, that it’s led to a behavioral state we are calling ‘no-finapp-phobia’ – the fear of being without financial applications.”
The report also found that in the US, USAA customers are the most satisfied with the identity and authentication methods offered and are therefore the most likely to recommend them.