Fed Says 21% of Mobile Phone Users Did Banking With the Devices

The Federal Reserve said 21 percent of U.S. consumers with mobile phones used the devices to access a bank account, credit card or other financial account during the 12 months that ended in January.

“The use of mobile banking is poised to expand further over the next year, with usage possibly increasing to one out of three mobile users by 2013,” the Fed said in a release today in Washington. “However, the survey indicates that many consumers remain skeptical of the benefit of mobile banking and the level of security associated with the technology.”

The survey of 2,300 people was conducted between Dec. 22 and January 9 and showed that the use of mobile banking is especially common among younger consumers. Forty-four percent of people who access financial services on their phone are between the ages of 18 and 29, the survey said.

“The majority of consumers who have a mobile phone but do not use mobile banking said they either had no need for these services or expressed security concerns,” the Fed said.

When asked about security, people who didn’t use mobile banking said “they believed it was unsecure or that they simply didn’t know how secure the technology was,” the Fed said.

To contact the reporter on this story: Joshua Zumbrun in Washington at jzumbrun@bloomberg.net

To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net

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