Just 20 per cent of UK smartphone users have embraced mobile banking services, with fears over the security of personal data chief among the barriers to adoptions, according to a recent survey conducted by YouGov. The survey, initiated by outsourcing firm Firstsource Solutions, also suggested a resistance to mobile wallet services in the UK, with almost 60 per cent of respondents ‘unlikely’ to use such a service.

NFC technology, closely associated with the mobile wallet concept is not trusted, with 67 per cent of respondents voicing fears that their personal bank details might not be secure. On a more pragmatic level, 22 per cent of respondents said they didn’t expect the technology to work.

Perhaps predictably, these concepts were more appealing to the younger demographic. Among 18 – 24 year old smartphone owners, 42 per cent indicated willingness to use contactless technology in the handset to pay for goods and services. But even in this demographic, 52 per cent still felt they were unlikely to use mobile wallet services, with the majority of these respondents again citing security concerns.

“It seems that there are still challenges to the widespread adoption of mobile banking,” said Iain Regan, head of sales and marketing at First Source. “Customers still have a lack of trust in mobile banking security which banks need to overcome by providing reassurance of security while at the same time making security procedures intuitive and easy to use.”

The UK’s mobile operators – with the exception of Hutchison’s 3UK – have established a joint venture, Oscar, to deliver mobile wallet services including coupons and marketing in conjunction with banks. But this project is currently being investigated by the European Commission for a possible breach of merger regulations. O2 has launched its own mobile wallet in the meantime.