Mobile Solutions for Banks and Financial Services

 

Mobile payments and transactions are a means to transact with customers or person to person no matter where they are geographically and without the limitations of fixed technology infrastructure. The most powerful benefit of mobile financial technologies is the ability to allow for banking, payments and other transactions outside of the traditional services offered - which could not have otherwise been done before.

 

Each role player, in the mobile business transaction, benefits in a unique way. At high level these benefits are deemed to be as follows:

 

Mobile banking and payments is getting considerable attention in markets around the world. It is clearly central to the strategic plans of the top banks and other financial institutions in all markets.

 

Mobile banking and payments is a clear example of the ‘convergence’ of compelling business and communications capabilities and propositions. This market sector has been through its evolutionary cycle and has reached a state of maturity that lends itself to the mainstream uptake of these services. In essence the key drivers can be summarised as:

  • The continued growth and adoption of mobile technologies
  • The clearly demonstrated user acceptance of services beyond voice; such as sms,
  • The powerful convergence opportunities between financial services and the mobile industry
  • The market demand for banks and other financial institutions to improve service and further leverage the benefits of self-service channels
  • The market need for banks and other financial institutions to provide services to new market sectors such as the youth market, un-banked and under-banked communities and the focus of the growth strategies of the financial services industry.

 

The strategic reasons for mobile banking and payments are compelling, clearly identified and very relevant and presents real opportunities for banks and other financial institutions:

  • For banks it has to be viewed as the next electronic channel, the logical next step in an electronic channel and self-service banking strategy, in order to provide banking services to:
    • Markets/populations with limited access to other electronic channels
    • Markets/segments who expect to be served through this channel such as the youth market
    • Markets/segments who demand the convenience of access to all the various channels – such as sophisticated mature markets who need an ‘on-the-go’ channel
  • A revenue diversification opportunity; opening a wide spectrum of new revenue opportunities comprising services such as airtime top-up and bill payments
  • A significant cost containment opportunity. To maximise existing infrastructure investments and to minimise the further investment in expensive infrastructure such as branches and the ATM network. Many cost/benefit models find huge opportunity in this area.
  • A powerful mechanism for improving the customer’s banking experience whilst forging a closer relationship
  • Extending affordable services to areas which would be very difficult to cover through traditional banking infrastructure


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