Security Fears Over Online Banking

Security fears are holding back six million people in Britain from banking online, according to a major study by MORI. The research, commissioned by RSA Security, shows 28% of British people see security as the number one barrier to banking online. But mobile phones could be the key to unlocking the market.

"There is a trade-off between security and convenience: many people neither feel safe making online transactions nor do they like the current password system for e-banking," said MORI Director Alnoor Samji.

However, when MORI tested a new mobile telephone security solution for e-banking the results were enormously strong. Instead of having to remember passwords, the software enables an e-banking customer to use their mobile phone as a secure authentication device, helping to ensure that individuals are positively identified before they can access sensitive account information and banking services.

"Whilst people are reassured by a brand they are familiar with, this feeling of reassurance is based on the assumption that leading suppliers already offer the most sophisticated security available," said Samji. "This mobile banking solution is already in use in Swiss banks and our research shows that it would be a major boost to customer confidence if used in online banking in the UK."

Immediate reactions to e-banking security solutions using mobile phones were overwhelmingly positive, particularly around the ease-of-use of the service compared to traditional passwords. The solution was seen as a significant improvement in transaction security by focus groups. In nationwide research, 67% of e-bankers, and 64% of those that say they would consider e-banking, are reassured by the mobile security solution.

The introduction of mobile security solutions for e-bankers could have significant repercussions on the market. Over a quarter of e-bankers say they would think poorly of their bank if it did not offer a comparable level of security. One in 10 (12%) e-bankers would consider changing banks for the service, and 17% of e-bankers say it would encourage them to use the service more.

In terms of driving new e-banking customers, 23% of non-online bankers say they would be encouraged to become e-bankers with the mobile security solution as reassurance, if offered by an established bank.

Technical details

The independent MORI research included quantitative surveys and qualitative focus groups to test specific security solutions. Questions were placed on MORI's weekly Omnibus, the regular MORI survey among the general public. A nationally representative quota sample of 1,972 adults was interviewed in-home throughout Great Britain by MORI. Interviews were conducted across 192 different sampling points between 20-24 March 2003. Two focus groups were held in central London with 25-40 year olds, ABC1 social grade and those who use a mobile phone. Group 1 was made up of online bankers, some of whom had shopped online. Group 2 comprised non-online bankers who use the Internet.