NEW DATA: Banks Fail To Meet Consumer Desire To Drive Mobile Banking Authentication

Consumers have come to expect specific services and features from their banks. New research conducted by PYMNTS, however, reveals that banks and other financial institutions (FIs) appear to be lagging in terms of meeting these expectations. Specifically, banks are failing to enable the authentication controls that consumers want in their mobile banking apps.

PYMNTS’ research indicates that nine out of 10 U.S. consumers want to be able to set their own authentication requirements when they access their bank accounts using digital channels. Only five out of 10 consumers have access to banking apps that provide this option, though. In other words, consumers want greater control over their financial apps’ authentication requirements, and they aren’t getting it.

To examine how FIs can bridge this gap, PYMNTS surveyed 2,835 U.S. consumers on their mobile banking app usage patterns. The findings presented in the Consumer-Centric Authentication Playbook: In Search Of Authentication Controls edition, a collaboration with Entersekt, offer actionable insights on providing the right mix of authentication controls that are key to attracting new banking customers, retaining existing ones and boosting satisfaction overall.

The Playbook highlights an interesting finding for FIs to consider: Providing greater authentication controls will not necessarily placate the consumers who want them. In fact, 80.8 percent of frequent users with full authentication controls, and 79.9 percent of those without full control, want to add authentication checks for more transactions, such as mobile check deposits. The Playbook also includes a Deep Dive that explores how attitudes on mobile app authentication controls vary by different generational groups.

Among the key findings presented in the Playbook:

  • 89.1 percent of respondents who use banking apps want to be able to set additional login requirements
  • 65.5 percent of respondents said they want to be able to authenticate account-to-account transfers
  • 70.2 percent of respondents want authentication controls for added security
  • Only 39.9 percent of respondents use apps that enable them to utilize authentication requirements for specific transaction types

For the latest insights on consumers’ mobile banking app authentication demands, and the steps FIs can take, download the Playbook.

About The Playbook 

The new Consumer-Centric Authentication Playbook: In Search Of Authentication Controls, a collaboration between PYMNTS and Entersekt, is based on a survey of 2,835 U.S. consumers regarding their mobile banking app usage and expectations. The Playbook includes over 300 data points that highlight what consumers want from their mobile banking app experiences, including authentication for specific transactions and heightened security features.


New PYMNTS Report: The CFO’s Guide To Digitizing B2B Payments – August 2020 

The CFO’s Guide To Digitizing B2B Payments, a PYMNTS and Comdata collaboration, examines how companies are updating their AP approaches to protect their cash flows, support their vendors and enable their financial departments to operate remotely.