Mobile Banking is Booming

Despite online security concerns, the number of Americans who use mobile devices to access their financial services is growing fast, according to new data from comScore. In the fourth quarter of 2010, almost 30 million Americans accessed their bank, credit card or brokerage accounts from a cell phone or tablet, up 54% from the same quarter a year earlier. Here's how that growth breaks down for the three primary mobile banking channels (note that some people use more than one): -Smartphone/tablet app: 10.8 million users, 120% increase -Mobile web browser: 18.6 million users, 58% increase -SMS text messaging: 8.1 million users, 35% increase Nearly half of those surveyed say they primarily access financial services online via a desktop or laptop computer; but 26% said they primarily use mobile services for banking. Only 10% of respondents primarily do their banking in person at a branch, and only 4% primarily handle their banking via voice calls. The biggest obstacle to using mobile financial services is simple habit or preference: 53% of smartphone owners and 45% of feature phone owners reported, "I prefer to conduct my transactions online from a fixed device." There are new services that are helping people avoid trips to the bank or ATM and may help boost the popularity of mobile financial apps. For instance, many major banks now offer smartphone apps that allow you to make a deposit by taking a picture of the front and back of the check. Regardless of how you decide to bank, always protect your password and make sure your security settings are continually updated.