A new Javelin Strategy & Research report reveals layers of paradox involving mobile banking. The first is that what consumers most fear most should not concern them: security. Turns out that mobile banking is not widespread enough to attract the attention of serious fraudsters. The second is that the industry, since it does not yet face a serious threat is not preparing for what is sure to come. They are not gaining the real-world experience necessary for the time when mobile transactions burst into the mainstream. "It's going to happen at the point where it's not just tech geeks like me" using mobile banking, says Tom Wills, a senior analyst with Javelin Strategy & Research. "When my aunts, uncles and grandparents use it, that's when the crooks go after the money."

In its banking safety scorecard compiled in November, Javelin found that just a fraction of the 30 million potential mobile banking customers have signed up for the service, with 47 percent of non-participants holding back because of security concerns - nearly twice the number who demure due to fees or other costs.

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