Risky transactions on mobile devices are showing an increase of 138% since 2017, iovation survey of 802 consumers from the United Kingdom and 802 consumers from the United States reveals.
“Our research determined three key market drivers that will shape the financial services industry in 2020,” said Melissa Gaddis, iovation’s senior director of customer success. “Consumer trust is a competitive difference, fraud is going mobile mirroring consumer behavior and customer satisfaction is driven by the mobile platform.”
Consumers go mobile
- Mobile device usage as a percentage of all online transactions has increased from 28% in 2014 to 61% so far in 2019.
- Mobile app usage grew at twice the rate of mobile web usage, from 15% in 2014 to 39% in 2019. Mobile web transactions went from 14% in 2014 to 22% in 2019.
- 62% of mobile consumers used iPhones, 34% Android devices, and just 4% iPads between September 2018 and September 2019.
Fraudsters go mobile too
- Since 2017, the percentage of suspected fraudulent transactions from mobile devices increased 138%. This far outpaced the growth in overall mobile transactions which only grew in the same time by 30%.
- So far in 2019, 50% of suspected fraudulent transactions were from mobile devices. In 2018 that statistic was 41% and in 2017 it was 21%.
Trust and security influence which financial institutions consumers use
- 3 out of 4 consumers (72%) say account security and privacy are primary factors in deciding which institution they bank with/have a credit card with.
- 2 out of 3 consumers (64%) would switch financial services companies for one that has more advanced security protocols in place.
- 2 out of 5 consumers (39%) have already closed an account with an online financial services company due to security and fraud concerns.