Consumers find mobile banking convenient, but they still prefer safety over ease of use

The key stat: Seventy-four percent of European banking consumers said they feel secure using their bank’s mobile app, according to a survey conducted by Entersekt. But many still worry about fraud while using the apps.

The survey polled 5,000 banking consumers in the UK, Norway, Hungary, and Germany to learn how they use their bank’s mobile app and their thoughts on banking security and data privacy.

Security over convenience: Mobile banking is quickly becoming one of the primary methods by which consumers interact with their bank. But mobile banking apps and other digital banking mechanisms make transactions more susceptible to fraud and consumers more likely to fall for scams. Consumers believe it’s up to banks to prevent this.

• 72% of respondents said they use their mobile banking app several times a week.
• Half of those surveyed said they would switch banks if they felt their account wasn’t secure, and 51% said they’d hold their bank responsible for any fraud or cybercrime related to their account.
• 71% of respondents said they prefer knowing the transactions they conduct on their mobile phone are secure over having a good user experience.
• 90% of those polled said they want to confirm a transaction on their mobile phone before it’s executed. They indicated the various authentication methods their banks use to verify transactions: 25% use a fingerprint scan; 21% use a one-time password or code received via text; 19% use facial recognition; and 12% verify with a message in their banking app.

Fraud is a concern: Consumers’ desire to confirm transactions and implement various authentication methods is validated by increasing risks.

• In just the first half of 2022, fraud cost UK financial institutions (FIs) over £305.2 million ($359 million). That’s up more than 4% from H1 2021.
• And even though 33% of survey respondents said they aren’t concerned about mobile banking fraud, 38% said they are worried using their mobile banking app could lead to a fraud incident.

What do consumers want? Our Banking Digital Trust Benchmark identifies which digital security features consumers most value from their FI and can make or break their trust.

• Real-time alerts: Consumers are more likely to trust an FI that alerts them when a sensitive or large-sum transaction occurs. This allows customers to flag any activity that they didn’t authorize.
• Stolen information monitoring: Keeping tabs on a customer’s information to ensure it wasn’t stolen or made public as a result of an online transaction will earn trust and loyalty, especially as more consumers make purchases on their mobile devices.
• Fraud reimbursement: Many consumers are likely to blame their bank for a fraud incident and highly value being reimbursed when fraud occurs.

This article originally appeared in Insider Intelligence’s Banking Innovation Briefing—a daily recap of top stories reshaping the banking industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.

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