Most consumers don't trust mobile payments. There's a way to fix that
While convenience, time savings, and innovation are important, customers also need to feel the information they share is secure.
Only about half of millennials believe their bank’s mobile app is secure. While less than half of baby boomers have faith in mobile banking security, the majority are still “app-rehensive’” to begin using mobile banking, payment and financial services platforms. By taking steps to improve the security of their apps, and informing consumers about how these measures protect confidential data from cybercriminals, companies can inspire consumers to become loyal customers who use their apps more frequently.
There are several effective steps which can better protect personal customer data shared in mobile apps, and foster a greater degree of trust from customers. Key recommendations include:
Implement a robust document interface for monthly statements shared online and in mobile channels, in order to reduce the risk of stolen or lost emails with statement links.
Offer customized security alerts which notify customers of important developments, such as username/password changes and if a sum of money beyond user-defined amounts is involved in a payment. Financial institutions can also automatically sign customers up to receive these security alerts.
Add multi-factor authentication, whereby users can log in using biometrics or one-time passwords, to provide another layer of security.
Use end-to-end encryption to prevent data from being read or security-modified.
Allow users to register their mobile devices in order to ensure their accounts cannot be accessed by unrecognized devices.
For banks and other financial institutions to survive and thrive in the age of mobile payments and e-commerce, they need to continue to enhance their mobile apps with more innovations, tighter security features, and more time-saving capabilities. Every bit of progress in these areas is key for fostering greater brand loyalty among customers in an industry which is under even more pressure to compete in today’s digital age.