Are consumers ready for m-banking?

Security and privacy concerns are the only things standing between banking and mobile domination, according to audit, tax and advisory firm KPMG. The results of its recent global survey indicate that the overwhelming majority, or 91%, of U.S. consumers have not tried banking through a mobile device, but 85% would like to if it were free.

Of the respondents that haven't tried mobile banking, 48% cited security and privacy concerns as the reason why. And while nearly 20% expected to break down and give it a try within the next year, 66% found financial transactions on mobile devices to be more daunting of a proposition.

Most of these consumers just 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 for KPMG's financial services practice. He said that consumers already are accustomed to using wireless to access data, so it's only a matter of time before they get comfortable with using, and potentially even paying to use, the mobile phone for browser-based financial transactions.

While consumers overcome their inhibitions, financial institutions, handset-makers and carriers appear ready to get on board with mobile banking. In March, Nokia acquired Obopay to stake its claim in this burgeoning market in developing regions - a shared focus of the GSM Association and several third-party vendors, including Fiserv, Mobile Money Ventures and Qualcomm's Firethorn. Still, in the U.S., where most of the population is banked, 68% of KPMG's respondents said their current bank does not offer transactions through a mobile device - or if it did, they haven't been made aware of it.

MOBILE BANKING

Transactional users 2011 forecast (%)

• North America
• South America
• Western Europe
• Eastern Europe
• Far East & China
• Indian subcontinent
• Rest of Asia-Pacfic
• Africa & Middle East

Source: Juniper Research