Users Trust Their Banks More than their Telecoms, Says Unisys

logo_Unisys_Logo.jpgThe cell phone is practically universal, with more than 3.3 billion
subscribers worldwide, yet 71 percent of all consumers surveyed
in 14 countries will not consider using a mobile device to bank or shop
online, according to a study released today by Unisys Corporation.

The research, conducted with the latest installment of the Unisys Security Inces, also reveals that more than half of all respondents
(59 percent) do not trust their mobile devices to provide a secure
transaction. Moreover, only 9 percent currently use these devices to
conduct transactions involving credit-card payments, money transfers and
deposits.

Unisys surveyed 13,296 consumers worldwide in March 2008 about their
mobile-device habits and how secure they feel when conducting online
transactions. The results indicate a widespread apprehension about the
security of mobile devices and their ability to protect pertinent
information relayed in a financial transaction.

Other key findings:

  • Consumers most reluctant to use a mobile device to bank or shop online
    include: France (86 percent); U.K. (79 percent); Australia (78
    percent); Belgium and Italy (both at 77 percent); and U.S. (71
    percent).
  • 21 percent of German respondents currently use a mobile phone or
    personal organizer to conduct financial transactions, representing the
    highest percentage of any country or region included in the survey.
    U.K. respondents have the lowest percentage of consumers using mobile
    devices to bank or shop (1 percent).
  • At least half of all respondents in each country or region -
    with the exception of New Zealand (45 percent) and Malaysia (49
    percent) - do not trust their mobile devices
    to provide a secure transaction.

  • Most consumers generally perceive banks as having the best security
    for mobile transactions
    when compared to telecom providers and online
    retailers. However, trust of banks vary greatly from country to
    country; for example, Italian respondents are twice as likely (72
    percent) to trust a bank to secure an online transaction via a mobile
    device as respondents in Malaysia (38 percent).

"Despite unprecedented growth in the number of
cell phone users and the advancement of mobile technologies, telecom
providers, online retailers, and financial institutions seem unable to
convince consumers worldwide that a secure platform exists for
conducting online mobile transactions," said
Tim Kelleher, vice president of enterprise security at Unisys. "There
is a great deal of money to be made in mobile payments, but only when
consumers believe that the security of the transaction meets or exceeds
the freedom of using mobile devices."

A Collaborative Approach

The Unisys research shows that consumers deem certain service providers
better equipped to secure mobile transactions. In fact, in more than
half of the 14 countries included in the study, under 10 percent of
consumers trust a telecom provider or an online retailer over a bank to
provide a secure transaction. Across the world, consumers overwhelmingly
favor banks to provide adequate security for mobile transactions.

"The fact that consumers trust banks more
than others to secure mobile transactions bodes well for the
financial-services industry," Kelleher added. "But
banks must still find ways to work alongside telecom providers and
retailers to leverage their innovation while educating consumers on the
realities of mobile banking and payment security. Collectively, they
must prove that conducting a financial transaction via a mobile device
is as secure as doing so on a desktop computer or in front of a bank
teller at a local branch."

About the Unisys Security Index

The Unisys Security Index is an ongoing study that provides insights
into the attitudes of global consumers on a wide range of security
related issues. International Communications Research (ICR) conducted
the survey in the U.S. and Europe; Newspoll conducted the research in
Asia-Pacific. The Unisys Security Index surveyed 13,296 people in 14
countries. The study measures consumer perceptions on a scale of zero to
300, with 300 representing the highest level of perceived anxiety. The
Unisys Security Index includes consumers'
opinions from Australia, Belgium, Brazil, France, Germany, Holland, Hong
Kong, Italy, New Zealand, Malaysia, Singapore, Spain, the United Kingdom
and United States. For more information about the Unisys Security Index,
see www.unisyssecurityindex.com.