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BizReport : Mobile Marketing : August 18, 2014

Security at the heart of U.K. mobile banking fears

Is mobile set to revolutionize banking in the UK as much as the the industry itself purports? Not according to new statistics from security and credential management specialists Intercede.

by Helen Leggatt

It was only last month that the British Banking Association reported that a 'revolution' in banking was taking place in the UK.

Citing statistics such as download rates of banking apps hitting 15,000 per day and nearly £1 billion a day (US$1.7 billion) being transacted via mobile and Internet banking in the UK, it sure sounded like the British are whole-heartedly embracing new banking technology.

But new research from Intercede - 'The Rise of the Identity Centric Economy' - seems to paint a very different picture. Their survey of 2,000 UK consumers found that half (53%) said they would never consider using a mobile banking service. In fact, many said they avoid using any mobile financial services at all.

Half said they avoid mobile money transfers while a quarter (24%) would not feel safe shopping via a mobile device.

According to Richard Parris, CEO of Intercede, recent news of hacking and major security attacks are challenging consumers' trust in mobile security.

"This is throttling the mobile economy," says Parris. "But with the mobile device boom set to continue, it's clear that security needs a radical revamp."

Maybe it's an age thing? Apparently not. In fact, it was those aged between 18 and 24 that were the most distrustful of smartphone-based banking and financial services with 62% saying they would never use mobile banking.

Image via Shutterstock

Tags: banking, mobile, security, U.K.

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