U.S. consumers believe mobile banking is important but do no not
want to pay for it and also are wary of using their mobile devices such
as cell phones, smartphones, and personal digital assistants (PDAs) for
financial transactions and online banking, according to results of a
survey conducted by KPMG LLP, the audit, tax and advisory firm.
KPMG's third annual Global Consumers and Convergence survey of more
than 4,000 people in 19 countries worldwide, which examines trends in
the use of mobile technology, revealed that 85 percent of U.S.
respondents believe mobile banking is important but they do not want to
pay for it. The overwhelming majority of U.S. respondents said they had
never tried banking through a mobile device (91 percent).
Of those respondents who have not conducted banking through a mobile
device, 48 percent cited security and privacy as the primary reason.
Some 68 percent of U.S. respondents also said that their current
bank does not offer banking through a mobile device and only nine
percent said they had tried mobile banking.
"Mobile banking is another vehicle banks can utilize to make banking
more accessible to customers," said Carl Carande, a principal in KPMG
LLP's Advisory and Banking and Finance practices. "Consumers value
banking services that make their lives simpler and more manageable and
mobile banking affords this convenience, so banks that address concerns
over security, privacy, and costs may be better able to retain existing
customers and attract new ones."
"The fact that the majority of U.S. consumers are not aware that
their current banks offer mobile banking is clearly more perception
than reality," added Carande. "Banks will need to work harder to
increase customer awareness of the availability of mobile banking and
clearly articulate the value proposition of the service before
consumers are willing to pay for it -- especially in this economic
Despite the pricing, privacy, and security concerns, 19 percent of
U.S. respondents said they are at least "somewhat likely" to use their
mobile device for online banking in the next 12 months. In addition,
seven percent said they are willing to pay at least a nominal fee to
access online banking services from their mobile device.
Mobile Payments and Financial Transactions Findings
According to the survey, the majority of U.S. consumers also are not
comfortable with using their mobile device for financial transactions
With regards to payments, 95 percent of U.S. respondents said they
never made a purchase from a vending machine using their mobile device
and 95 percent said they never made a purchase using a mobile device
through a retailer's mobile Web site, further suggesting an
unfamiliarity or lack of comfort in using a mobile device for
transactions and payments.
"U.S. consumers -- as well as worldwide -- need to be convinced that
new payment methods and banking vehicles are safe and secure for them
to succeed," said Mitch Siegel, director of payment advisory services
in KPMG LLP's Financial Services practice. "Once these concerns are
addressed, consumer confidence can grow and adoption could potentially
"With high mobile device penetration rates, U.S. consumers are
accustomed to using the mobile channel to access data," added Siegel.
"And it may only be a matter of time before they grow comfortable with
using -- and potentially paying a premium to use -- the mobile device
for browser-based and point-of-sale, 'contactless' financial
"Banks that include the mobile channel as a component of their
payment strategy -- including a roadmap of products and a tactical plan
-- will position themselves well for the future," concluded Siegel. "As
part of this effort, banks will need to address complex arrangements
for account ownership and revenue sharing between device manufacturers,
carriers, merchants and application/network providers. The navigation
of these complex arrangements may help drive consumers' eventual
adoption of the mobile device as a 'virtual wallet' and the culmination
of a channel that could represent the ultimate convergence of payment