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Consumers want more personalization, security from mobile payments

Aug 08, 2013 Dave King

Consumers want more personalization, security from mobile payments

In popularizing mobile devices as an efficient and user-friendly mode of alternative credit, financial institutions are facing a challenge in serving consumers through their mobile banking applications.

According to new research from Cognizant and Monitise, the challenge for banks will be to offer experiences based on specific consumer habits as well as develop advanced digital wallet capabilities, which include new security measures, spending records and bill tracking.

In fact, 41 percent of survey respondents desire interfaces designed for tablets. This is especially important, as 60 percent of tablet owners indicated preferring to use the device over smartphones for mobile banking. Additionally, consumers want more personalization - more than 75 percent said that tailored features, such as the ability to rearrange tabs and functions, are important.

"Providing innovative and personalized mobile services based on consumer segmentation will enable banks to not only run better by maximizing their investments, but also run differently by strengthening customer engagement and driving greater adoption of mobile banking for competitive differentiation," said Vin Malhotra, consulting partner for banking and financial services with Cognizant Business Consulting (CBC).

Financial institutions can also expand their engagement with consumers and adoption of mobile payment systems through the use of social media. The study indicates a desire on behalf of consumers for their banks to provide better shopping and social media experiences. This service can be delivered through partnerships with retailers to deliver coupons, which can ultimately boost mobile wallet use.

However, not all consumers are ready to embrace mobile payments. Questions regarding the channel's level of security continue to linger in the brains of many shoppers, which Retail Week noted will be an ongoing challenge for both financial institutions and stores.