Consumers using mobile banking apps want to know their personal information and other data are safe. But according to a recent survey, not all lenders provide such assurances.
Auto lenders, alongside other financial services providers, should notify customers when suspicious activity appears on a credit profile. Allowing customers to confirm transactions also goes a long way toward assuring them their credit profile is secure.
Iovation, a TransUnion company, found that 80 percent of mobile banking customers would use an app that would notify them of unusual account activity, from a survey of 1,604 consumers in the U.S. and U.K.
But banks largely aren't providing these tools. Forty-two percent of online banking consumers receive a push notification every time they make a transaction, while just 37 percent receive notification of unusual activity.
Auto lenders should be particularly cautious in safeguarding customer data that moves through mobile apps. Thirty-nine percent of consumers have closed a financial services account out of security and fraud concerns, but auto loans are much trickier.
"Their ability to close the account would not be the same as a retail banking account," Molly Hetz, Iovation's product marketing manager, said of consumer auto loans.
Customers can't cancel an auto loan like they can a credit card if they're concerned their data isn't secure. Auto lenders need to ensure, especially as they roll out mobile apps, that customer data is protected, and that customers know that.