Since 2009, Easy Solutions has conducted a broad survey of consumers across the Latin American region to better understand adoption trends of online and mobile banking. We recently released our 2015 edition of the Views of Latin-American Consumers on Electronic Fraud study which, among other findings, shows that users are adopting mobile banking in higher numbers than ever before across Latin America, with Central America and Mexico showing the fastest growing rates of adoption. However, the report also highlights that fears of fraud persist in general and continue to represent a major obstacle for consumers to fully embrace mobile banking.
The objective of the study is to establish and benchmark the level of awareness, opinions and attitudes towards the electronic threats consumers face when using payment channels such as online and mobile Banking. In addition, the study aims at determining what actions financial service providers are taking --or should be taking -- to ensure the integrity of their customer’s transactions.
Some of the key findings from the study include:
- Despite fears of fraud, mobile banking is on the rise across Latin America. Online banking users keep decreasing the use of traditional channels such as offices and branch locations, with less than 30% of customers employing their bank’s ATMs and IVR systems.
- The majority of mobile banking users are utilizing their bank’s native app to perform their regular banking functions. Yet, around one third of users still access the bank’s portal through a web browser, which means that banks must offer more education about why using an app is a safer and more convenient option.
- The survey indicated that one third of users prefer a mobile device over a computer to perform banking operations. While the convenience of mobile banking is more than enough to convince users to adopt the channel, a majority of them are waiting for improvements in security before diving in.
- Users increased the password recycling for different websites. This increases the risk of unauthorized access, since credentials stolen in an attack can be used successfully in another portal.
- One third of users have installed some sort of security protection on their computers aside from antivirus software, demonstrating a greater willingness to employ security tools to protect their transactions. However many users didn't get these programs from a reliable source, which presents a high security risk.
Mobile banking holds a lot of promise, both for its convenience and cost-effectiveness, as well as for its ability to provide a more secure banking channel and experience for end-users. Banks in Latin America (and globally) are likely to find a good return-on-investment by educating their users to both the security advantages and precautions they should take in adopting this channel.
The complete report is available in English, Spanish and Portuguese and can be downloaded at http://www.easysol.net/research-report or you can view a two-page summary and infographic below.