Product Type: Market Research Report
Published by: Javelin Strategy & Research
Published: December 2008
Product Code: R3424-76Description Security concerns are the single biggest factor inhibiting consumer acceptance of mobile banking. These concerns are as much a matter of consumer perception as they are of reality - so getting both right will be key. The volume of attacks on mobile banking systems is negligible in the still-nascent and fragmented market that exists today, but will rise as adoption builds, and in particular, as operating system consolidation and platform standardization increases. With a well-designed security program in place, mobile has inherent safety advantages that make it one of the most protected channels for remote banking. It can be used to improve overall (cross-channel) security via the inherent speed-and-notification advantages of always-on, always -present mobile access. For now, build on the diversity of platforms to maintain confidence that malware isn’t likely to infect consumer devices, but be aware that emergence of standard platforms will erase today’s advantage in the future. Included in this report is a review of the security of mobile banking vendors: ClairMail, CPNI, Firethorn, Fronde, Harland, Jack Henry, mFoundry, M-Com (marketed by Fiserv in the US), Mobile Money Ventures (MMV), Monitise Americas (marketed by Metavante in the U.S.), MShift, Tyfone, and Yodlee.
Primary Questions
- How will security affect mobile banking consumer uptake?
- What are consumers' perceptions around mobile banking security, and how should FIs address them?
- Compared to other customer interaction channels, how safe is mobile banking?
- What real security issues does mobile banking face, how are they being addressed now, and what still needs to be done?
- How do the three key mobile banking enabling technologies (mobile web, dedicated applications, and SMS text banking) - and the various mobile banking platform vendors - compare in terms of security?
Table of Contents - Overview
- Primary Questions
- Findings & Analysis
- Methodology
- Executive Summary
- Recommendations
- Three-Part Strategy for Mobile Banking
- Consumer Awareness Programs
- Business Controls
- Technical Controls
- Consumer Perceptions of Mobile Banking
- Security Concerns are the Biggest Barrier to Mobile Banking Adoption
- How Many Consumers Judge Mobile Banking to be Safe or Unsafe?
- What Are Consumers’ Top Mobile Security Concerns?
- Which Mobile Banking Platform Is Rated as Most Secure by Consumers?
- What Do Consumers Prefer for Authentication?
- Consumers Want to Be Actively Engaged in Security
- Fraud Loss Guarantees Increase Consumer Perceptions of Security
- Mobile Banking Security-Current Reality
- The Mobile Banking Security Landscape
- Security Comparison of Mobile With Other Electronic Banking Delivery Channels
- Mobile Malware - A Tempest in a Teacup?
- Authentication
- Mobile Banking Enabling Technologies Compared
- SMS Text Banking
- Mobile Web
- Dedicated Mobile Applications
- Cross-Technology Platforms
- The Mobile Banking Platform Vendors
- Vendor Security Analysis
- Session Authentication
- Securing the Client Application
- Client-Server Communications
- Appendix
- Related Research
- Glossary
- Companies Mentioned
- Table of Figures
- Figure 1: Javelin’s Three-Part Strategy for Mobile Banking Security
- Figure 2: Three-Part Strategy for Mobile Banking Security -- Detailed
- Figure 3: Mobile Banking Consumer Education Examples
- Figure 4: Worries Holding U.S. Consumers Back From Banking with their Handsets
- Figure 5: Consumers’ Safety Ratings of Mobile Banking
- Figure 6: Consumers’ Top Concerns About Mobile Security
- Figure 7: Consumers’ Opinions on the Most Secure Platform for Mobile Banking (By Age)
- Figure 8: Consumers’ Preferred Methods of Mobile Authentication
- Figure 9: Two-Way Interactive Alerts Allow Customer Participation in Fraud Prevention
- Figure 10: Consumers’ Rating of Effectiveness of “UDLAP”s and Mobile Alerts to Prevent Fraud
- Figure 11: Forecast of Consumers Receiving SMS Alerts 2009 to 2013
- Figure 12: Consumer Preference for Additional Methods to Increase Security
- Figure 13: Mobile Banking Security
- Figure 14: Security Comparison of Mobile With Other Electronic Banking Delivery Channels
- Figure 15: Security Best Practices and Key Vulnerabilities
- Figure 16: Vendors and Their Mobile Banking Offerings Surveyed
- Figure 17: Vendor Comparison - Session Authentication
- Figure 18: Vendor Comparison - Platform Mobile Banking Client Applications
- Figure 19: Vendor Comparison - Client-Server Communications
- Figure 20: Javelin’s Prevention, Detection and Resolution™ Model
- Figure 21: Why Consumers Don’t Try Mobile Banking (by Age)
- Figure 22: Consumer Perceptions of the Security of each Enabling Technology (by Mode)
- Figure 23: Consumers’ Experience Downloading Content to Mobile Phone (by Age)
- Figure 24: How Consumers are Accessing Mobile Banking (Browser, Text or Application)
- Figure 25: Mobile Web (Browser-based) Banking Security by Vendor
- Figure 26: SMS Text Banking Security
- Figure 27: Dedicated Mobile Application Security by Vendor
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