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The mobile phone is practically universal, with more than 3.3 billion subscribers worldwide, yet 71% of all consumers surveyed in 14 countries will not consider using a mobile device to bank or shop online, according to a study released by Unisys Corporation.

The research, conducted with the latest instalment of the Unisys Security Index, also reveals that more than half of all respondents (59%) do not trust their mobile devices to provide a secure transaction. Moreover, only 9% currently use these devices to conduct transactions involving credit card payments, money transfers and deposits.

Unisys surveyed 13,296 consumers worldwide in March 2008 about their mobile-device habits and how secure they feel when conducting online transactions. The results indicate a widespread apprehension about the security of mobile devices and their ability to protect pertinent information relayed in a financial transaction. A key finding is that consumers most reluctant to use a mobile device to bank or shop online include: France (86%); UK (79%); Australia (78%); Belgium and Italy (both at 77%); and US (71%).

Twenty one per cent of German respondents currently use a mobile phone or personal organiser to conduct financial transactions, representing the highest percentage of any country or region included in the survey. UK respondents have the lowest percentage of consumers using mobile devices to bank or shop (1%).

At least half of all respondents in each country or region — with the exception of New Zealand (45%) and Malaysia (49%) — do not trust their mobile devices to provide a secure transaction.

Most consumers generally perceive banks as having the best security for mobile transactions when compared to telecom providers and online retailers. However, trust of banks varies greatly from country to country; for example, Italian respondents are twice as likely (72%) to trust a bank to secure an online transaction via a mobile device as respondents in Malaysia (38%).

“Despite unprecedented growth in the number of mobile phone users and the advancement of mobile technologies, telecom providers, online retailers and financial institutions seem unable to convince consumers worldwide that a secure platform exists for conducting online mobile transactions,” said Tim Kelleher, vice-president of enterprise security at Unisys.

A collaborative approach

The Unisys research shows that consumers deem certain service providers better equipped to secure mobile transactions. In fact, in more than half of the 14 countries included in the study, fewer than 10% of consumers trust a telecom provider or an online retailer over a bank to provide a secure transaction. Across the world, consumers overwhelmingly favour banks to provide adequate security for mobile transactions.

“The fact that consumers trust banks more than others to secure mobile transactions bodes well for the financial-services industry,” Kelleher added. “But banks must still find ways to work alongside telecom providers and retailers to leverage their innovation while educating consumers on the realities of mobile banking and payment security. Collectively, they must prove that conducting a financial transaction via a mobile device is as secure as doing so on a desktop computer or in front of a bank teller at a local branch.”

Adelaide-based Oasis Systems demonstrated a video banking solution for mobile devices on Dialogic’s multimedia platform using its 3G Video gateway and video and voice media server at CommunicAsia in Singapore last month. The application has been enthusiastically reviewed by potential customers as it is easier to use than the usual phone banking solutions that use the old interactive voice response systems (IVR). Oasis is currently talking to a number of interested service providers that will provide the service.

This application and similar mobile video banking solutions could be the catalyst to break down users' uneasiness in trusting mobile banking services.

Vodafone, Cisco and Research in Motion (RIM) have combined for the first time in the world to deliver an integrated business communications solution for small business. This will be marketed as Vodafone Business One. It combines all telecommunication services, fixed and mobile, voice and data, services and equipment. As it is a business-grade solution it comes with the security to enable the necessary financial transactions. It is currently being trialled by four customers including retailers that use the service for financial transactions.

Greg Wade, regional VP RIM, says, “Security has been one of the key tenets of the Blackberry platform since day one of the company. In fact, this is one of its key differentiators.

“More and more enterprises are running mission-critical apps on a mobile platform so they must have security as there is no control because mobile workers are not confined by bricks and mortar."

 

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