Security concerns are apparently holding back mobile bankingadoption, which appears to have plateaued, according to a newreport.

Based on interviews with 13,000 consumers in three surveys takenover the past 16 months, Javelin Strategy & Research said thatwhile smartphone ownership jumped as much as 40%, mobile bankingadoption growth has flattened.

“With the explosive growth of smartphone ownership … andconstant buzz about such hot new technologies as mobile wallets forpayments, financial institutions expected that mobile bankinggrowth would continue to skyrocket as well,” the San Francisco firmsaid. “Tech-savvy consumers are increasing their use of smartphonesto do almost everything these days–everything, that is, exceptmobile banking and purchasing.”

Aggressive promotion apparently hasn't overcome security fears.Javelin said that between 2009 and 2010 the number of consumers who rated mobile banking as “unsafe” or“very unsafe” increased by more than half, from about 25% to 40%.That was before the major data breaches of this year.

“These data breaches make consumers feel even more uneasy aboutusing mobile channels,” the think firm said in its new report,“Smartphone Banking Security: Mobile Banking Utilization Stalls onConsumer Fears.”

“This study is a wake-up call to FIs to look into what consumersreally want,” said Philip Blank, Javelin's managing director forsecurity, risk and fraud. “First and foremost, FIs need to addressconsumers' needs around security and communicate to consumers theircommitment to creating a safe and trusted channel for mobilebanking.”

Javelin's report was based on surveys taken in July 2010, March2010 and March 2011.