US customers using mobile banking applications want their mobile devices to instantly recognize them through biometrics including fingerprint and voiceprint, instead of passwords and usernames, according to a recent report by Telstra.
The report has revealed that the points of concerns of customers have shifted from interest rates and ease of accessing funds to the security of their finances and personal information.
The report also said that less than half of US consumers were very satisfied with the authentication methods being offered by their financial institutions and around one third were willing to pay an extra $17 annually to get more sophisticated mobile security measures such as voice, fingerprint, iris and facial recognition.
Telstra global industry executive for banking, finance and insurance Rocky Scopelliti said: "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.
"Two-thirds of US 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 US 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."
The report also claims that the current generation has become so dependent on their apps for financial transactions that it has resulted into a behavioral state that the company has titled ‘no-finapp-phobia’, the fear of being without financial applications.
"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," added Scopelliti.
Image: Customers using smartphone apps are ready to pay extra to strengthen the security of transactions through apps. Photo: courtesy of Stuart Miles/freedigitalphotos.net.