With the introduction of any new channel or technology such as the use of mobile devices for banking activity, financial institutions (FIs) must ensure that the perceptions and the realities surrounding security are successfully managed, both to ensure adoption and protect customers and the institution from emerging threats. The key emphasis of this study focuses on the approach that FIs should take toward consumer security education, as well as the need for strong collaboration among vendors, banks and carriers for effective implementation. This report provides a comprehensive analysis of the key security aspects surrounding mobile banking: the security perceptions, preferences and behaviors of consumers; actions that financial institutions are taking to secure the mobile channel; and an assessment of potential threats. Javelin also delves into the mobile security issues of FIs and insights of vendors, extracting valuable insight from in depth interviews with leading US banks and platform suppliers.

• What are consumers’ security perceptions around mobile banking, and how should FIs address potential obstacles to adoption based on these perceptions?
• What real security issues do FIs face, and how are they securing the mobile channel?
• How serious are these threats and where are they going?
• What are the security advantages/fallbacks of each of the three mobile banking platforms: (browser-based, SMS and downloadable application)?