MOBILE BANKING: YOU DID WHAT… WHERE?!

Ken Bui
Ken Bui

Latest posts by Ken Bui (see all)

Nearly one-half (46 percent) of smartphone bankers are banking in the bedroom, according to a new Harris Poll from Feedzai. And that’s not the only strange place – nearly one-third (30 percent) bank while in the bathroom and 13 percent admitted to doing so while driving.

Slice and dice this data for the millennial population, and these statistics increase: sixty percent of millennials are banking from their bedrooms, while one-fifth (20 percent) are making a mobile banking transaction at a bar or while driving.

The “2015 Consumer Banking and Shopping Behaviors: Sentiment on Personal Data” study reveals these and other burgeoning behaviors, highlighting shifts in consumer attitudes and actions in light of recent data breaches and the rise of smartphone usage.

Feedzai_Mobile_Banking_Infographic

As we look at this brave new world of digital payments, fraud prevention, and big data, it’s important to track the trends that are happening. As a company that does behavioral profiling and monitoring for our customers, surveys like this help us to redefine what to expect moving forward. As consumers begin to shift their behavior, even subtlety, we are right there as it happens to ensure that their financial information is being protected from payment fraud and identity theft.

Year-Over-Year Insights

Although data breaches have been prevalent over the last year, the study shows that they haven’t changed American consumers’ shopping behavior. Over half of consumers indicated data breaches are to be expected as part of the experience of shopping with credit/debit cards (56 percent). Last year, 51 percent of consumers said the same.

While cash was once king and Americans believe it’s the safest way to make a purchase, fewer are using cash in 2015. Over half of Americans believe cash is the safest way to purchase something (55 percent) while only one in five (22 percent) believe paying with credit cards is safest. Only 36 percent of consumers said they are using cash for more of their purchases in light of data breaches.

Transparency

The data also shows that consumers are willing to give a financial institution access to their personal data in exchange for protection. Men, specifically, are more willing than women to share their mobile data (34 percent versus 28 percent), online activity (32 percent versus 26 percent) and social networks (26 percent versus 20 percent) in exchange for this sort of protection. Overall, in all three categories, 27 percent of males would be willing to give up their data versus 19 percent of women.

In general, we can look at this data and say that women are more risk averse than men. In the context of Feedzai’s fraud prevention work, there’s a trade or a bargain – providing more data for our machine learning algorithm in return for being safer. This is the point that the industry is currently teetering on. The industry needs to demonstrate that knowing more about you will help us protect your money. We’re starting to see this functionality in various apps – like banking apps asking for location. Five years ago that wouldn’t have happened or mattered, but now it’s a real, meaningful source of data.

Last week, PYMNTS’ Karen Webster interviewed Nuno Sebastiao on how Feedzai takes a micro view of a very macro problem – fraud prevention – by using intelligence and insight to address the issue on a personal level.

“I would say that a lot of the solutions out there, they’re working along one angle: that being, ‘I’ll get some sort of data at the social level and whatnot, and then I’ll try to use it to understand whether or not it’s fraudulent.’

We come at it from a completely different angle. Ours is a purely technological approach that is based on particular clients’ data — social data, for example — used to understand what behaviors are indicative of payments fraud. While there is a lot of singularity among players — merchants, for instance — the fact is that each one has a specific set of data. We focus more on the technological engine rather than having a ton of data to then share with everyone.”