A new survey has found that almost half of Canadian smartphone users (49%) expect to do banking from their mobile device in the next 12 - 24 months.

The survey of 700 online Canadians, paid for by ING Direct, found that about one in three (35%) of Canadian smartphone users have done banking on their mobile devices in the last 12 months.

Among younger adults aged 18-34, almost two out of three (64%) said they expect to bank from the smartphone in the next year or two. Currently just over half of adults 18-34 (53%) says they have banked from their smartphone in the last year.

Despite the promising uptake of mobile banking in the last year, the survey found that nearly two-thirds of Canadian smartphone users (65%) still aren't banking through their device. When asked why, a majority (56%) said online banking suited them just fine while one in five Canadians (21%) said they prefer other methods of banking (in person, ABM, telephone, etc.) A large number of respondents, 40%, said they had security concerns about using their mobile phones to do banking. Of all respondents, 64% said security is their biggest concern about mobile banking.

"It's not surprising that security is one of the biggest concerns," said ING Direct CIO Charaka Kithulegoda who says mobile banking employs the same security measures as online banking websites.

For smartphone users who have used mobile banking in the last 12 months, the most common mobile banking functionalities used include: checking account balances (63%), paying a bill (19%), transferring funds (15%), emailing money (2%) and buying and selling mutual funds (1%).

Another drawback of mobile banking at this point is the inability to carry out many basic financial transactions such as the ability to add a payee and make mobile payments.

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