Calls for greater mobile banking security grow louder

The report found that many Australians would rather be identified by fingerprint, voiceprint or facial analysis, instead of having to enter in a username and password.

According to the report, consumers no longer believe in the safety of passwords, instead trusting options such as biometrics and second-factor authentication far more.

Under 50 per cent of consumers surveyed said they were “very satisfied” with their institution’s authentication methods, while four in five said they would feel more secure with biometric standards, believing it would result in less threat of fraud.

“As consumers become more sophisticated users of mobile financial applications, acquiring products and services, it means they expect more sophisticated security – of which a third of those surveyed would be willing to pay for on average at $17 per annum,” Telstra global industry executive for banking, finance and insurance, Rocky Scopelliti said.

Mr Scopelliti noted that financial institutions need to rethink their levels of security for mobile banking, with biometrics now the preferred method of being identified.

“As financial institutions are more trusted than other organisation types, the fusion of financial services, mobility and identity offers the industry an opportunity to lead the creation of the interest of trust – assuring consumers and businesses that their finances and personal information are safe and secure,” he said.

“These benefits, however, can only be realised through new models of collaboration within the broader digital mobile ecosystem.”

The Telstra report revealed ING Direct and BankWest customers are the most satisfied with the identity and authentication methods offered and are the most likely to recommend them.