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Online banking taking hold in US and UK, but security still a concern

Consumers in the U.S. and the UK are increasingly adopting mobile and online banking, according to a 2014 survey by cognitive biometrics firm BioCatch.

In both countries, the survey reveals that more users are performing banking transactions over the web and through a mobile device, at 36 per cent and 29 per cent respectively, which shows an over take from traditional means such as telephone and branch banking.

“We’ve seen an uptick in online and mobile adoption rates among banking customers over the past few years and expect this trend to continue at a rapid pace as banks continue to improve their functionality,” BioCatch VP of Products Oren Kedem said.

But while this is a positive development in the online banking space, the study also shows that a number of consumers who have not yet delved into online banking are experiencing a number of pain points in using such services. 46 per cent cited limited functionality and 36 per cent listed inconvenient login and authentication processes.

A lack of security is also an issue and is considered as one of the greatest obstacles to adoption: 61 per cent indicated that fear of hacking was their main reason for avoiding online banking.

But as banks add more functionality for their users, these adoption rates will continue to grow, the study states.

“The main thing that banks need to contend with when adding functionality is the increased chance for security breaches that comes along with it,” Kedem adds.

BioCatch conducted the survey with 600 banking customers from the top five banks in both the U.S. and the UK.

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