Smartphones primary channel for Gen X/ Y to access and manage their finances
Has led to a behavioural state Telstra is calling ‘no-finapp-phobia’
THE majority of Singaporean consumers using mobile banking applications want their mobile devices to instantly recognise them via biometrics such as fingerprint and voiceprint, instead of having to prove who they are with passwords and usernames.
Indeed, one in four is also willing to share DNA [information] with their bank to secure financial and personal information, Telstra said in a statement, citing a new report it released.
According to Telstra’s Mobile Identity – The Fusion of Financial Services, Mobile and Identity report, with smartphones now the primary channel used by Gen X and Gen Y to access and manage their finances, expectations around how financial institutions manage mobile identity are being transformed.
“For the last six months, we’ve spoken to consumers and banks all over the world, in an effort to understand how our relationship with our smartphone is affecting our relationship with our financial institutions,” said Rocky Scopelliti, global industry executive for Banking, Finance & Insurance at Telstra.
“What we uncovered is that when it comes to mobile banking applications, consumers no longer believe in just the safety of passwords and usernames.
“Instead, two-thirds of Singaporean consumers think that using biometrics – such as voice, fingerprint, iris and facial recognition – would be more secure and help reduce the risks of fraud.
“In fact, one in four Singaporean consumers would even consider sharing their DNA with their financial institution, if it meant it would make authentication easier and their financial and personal information more secure,” he said.
According to the research, while factors such as interest rates and ease of accessing funds used to be the most important considerations when selecting a financial institution, today, more than half of Singaporean consumers cite the security of their finances and personal information as their top priority, together with their institutions’ reputation for security.
Despite this, the report found that less than a third of Singaporean consumers were ‘very satisfied’ with their institutions’ authentication methods, with one third willing to pay an extra S$11 (US$8.19) per annum for more sophisticated mobile security measures.
“Our research shows consumers are using their mobile banking applications in some really cutting-edge ways, so they’re expecting much more than ever before from their financial services providers in terms of security, innovation and functionality,” said Scopelliti.
“In fact, Gen X and Gen Y have become so dependent on their smartphones to access their financial services that it’s led to a behavioural state we are calling ‘no-finapp-phobia’ – the fear of being without financial applications,” he said.
In Singapore, OCBC customers are the most satisfied with the identity and authentication methods offered and are accordingly, the most likely to recommend them.
“With our consumption of financial services intrinsically linked with the mobile device, our mobile identity is the key to unlock trust with our service provider.
“For ‘no-finapp-phobic’ Gen X and Gen Y consumers, it’s time to create mobile identity solutions that instantly recognise them for who they are,” Scopelliti said.
For more information on Telstra’s Mobile Identity – The Fusion of Financial Services, Mobile and Identity whitepaper, click here. Click on the infographic below to enlarge.
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