Mobile banking initiatives plagued by security concerns

Smartphone marketing strategies have been adopted by a range of industries, from retail to restaurants, in an effort to improve customer experience management.

Smartphone marketing strategies have been adopted by a range of industries, from retail to restaurants, in an effort to improve customer experience management.

However, the financial services sector has run into some challenges in their quest to roll out mobile banking to a wider audience of consumers. A recent survey from audit, tax and advisory firm KPMG found that only 33 percent of respondents have used their mobile devices to complete a banking transaction.

One of the biggest factors blocking further adoption of mobile banking is consumer worries about security. Thirty-nine percent of respondents said security and privacy concerns were preventing them from going mobile.

"Mobile commerce is evolving, and telcos, media companies, retailers, financial institutions and other service providers cannot assume that their previous reputation is enough to gain the consumer's trust when handling financial and personal data," said Mitch Siegel, a principal in KMPG's financial services practice. "There will be new winners and new losers, but the winners will be those who get the trust element right."

With more than 90 million Americans using smartphones, according to a recent report from comScore, it will be more important than ever for financial institutions to adopt measures that will keep customers' digital interactions secure.