Fed Studies Reasons for Mobile Banking Resistance - Products News


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Fed Studies Reasons for Mobile Banking Resistance

The content is accurate at the time of publication and is subject to change.

Although the trend toward online and mobile banking is strong, plenty of people are still wary. A recent report from the Federal Reserve Bank of New York showed that this reluctance was due to everything from security issues to not having a smart phone. But one of the top reasons provided? No need, according to the survey takers.

According to The Federal Reserve Consumers and Mobile Financial Services Report 2013 these are the reasons respondents cited for not going mobile:

  • My banking needs are being met – 54%
  • I’m concerned about the security of mobile banking – 49%
  • I don’t see a reason to use mobile banking – 47%
  • I don’t have a smartphone for mobile banking – 40%
  • I don’t trust the technology – 14%
  • Cost of data access is too high – 11%
  • It’s too difficult to see on phone’s screen – 10%
  • I don’t have a bank account – 6%
  • It’s difficult or time consuming to set up – 5%
  • I don’t do the banking in my household – 5%
  • Bank charges for mobile banking – 1%

Survey results were drawn from a sample of 2,600 people over 18 in November 2012. The report was published in March 2013.

On the rise, but still a small percentage

Although its popularity is growing rapidly, mobile banking has still been embraced by a relatively small percentage of the population. According to the Mercator Advisory Group only 17% of respondents reported checking their balances via mobile device, 11 used it to transfer funds between accounts and 8% set up alerts.

As Androids and iPhones continue to rise in popularity and technology develops, access will open up and concerns will fade.  Some holdouts though won’t want to give up their old familiar way of banking. For those people, nothing can replace going to the teller window and doing business face-to-face.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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