The document summarizes topics from the M-Commerce WorldSummit 2011 conference including:
- Mobile banking and payments have become mainstream with hundreds of banks offering mobile apps and services.
- Mobile payments are expected to exceed $600 billion globally by 2013 across various models like SMS, NFC, and mobile wallets.
- Questions are raised about what truly constitutes "mobile money" and banking the unbanked.
- NFC technologies are being trialed in many countries but are they ready for widespread adoption?
- The mobile phone is bringing changes like app stores challenging traditional telecom operators and banks.
3. Mobile Banking and Payments are Mainstream Mobile Banking Approximately 700-800 banks with mobile banking applications live in the marketplace right now. Popular channels include: SMS, USSD, SIM Toolkit, Mobile Web/WAP, Apps, IVR, IVR call-back Mobile Payments Payment @ Distance Models: SMS, USSD, SIM Toolkit, direct mobile billing/PSP billing, direct operator billing, Mobile Web/WAP, Apps, Credit Card, online wallet systems, IVR, IVR call-back Payment @ Proximity Models: (all of the above, plus…) NFC, RFID, Bluetooth, Zigbee, Wifi, IrDA, UWB, TransferJet, etc. Combined market for all types of mobile payments is expected to reach more than $600B globally by 2013 (double of the current figure. Mobile payment market for goods and services, excluding contactless NFC transactions and money transfers, is expected to exceed $300B globally by 2013. Mobile Money Dozens of GSM operators world-wide providing money transfer, payments and prepaid services. Mobile Banking is growing in popularity in all markets
4. Rabobank Mobielbankieren : Usage in 2010 HUGE growth in mobilebankieren with the launch of “Apps” in place of WAP-based mobilebankieren 2006-2009 level
5. But what are we talking about? IVR Banking & Payments SMS Account Activity Alerts Multi-ChannelBalance-Checking Full-Service Mobile Banking Remote Payments & Electronic Wallets Mobile Contactless / Proximity Payments “Mobile Money” Mobile Remittances ??? = banks deploy = public transportation-led models = bank-led models = cooperative models = mobile operators deploy = third-parties deploy = mobile operator-led models
22. Limited transaction account capability, so barrier to scale on transactions, if billed; however, customers expect MB for free, so no charging likely possible
23. Functionality of MB is extensive, but can never enable everything a bank would want to deliver= especially for developing markets
24. Why do it? Churn reduction? Money transfer revenues? Lack of infrastructure? (power, connectivity, computers) Because our competitors were doing it? Convenience? … Banking the Unbanked? Hmm. Not everyone is a sustainable banked customer (banks do have a bottom line) You probably do, but let’s look at why do you need a bank account … Is “Mobile Money” banking the unbanked? Is the “consumer marketing” predilection and ATL marketing messages we are so quick to champion as “changing the rules for access to finance” actually doing us good in the long run? SUGGESTIONS FOR THE CONFERENCE: 1.) Let’s explore our real motivations & associated benefits. 2.) Let’s look at the real revenue potential for MFS in our markets.
26. Some NFC Trials & Products: Ready for Prime Time? = proposed for, or existing commercial roll-outs Italy France USA Netherlands Czech Republic Slovenia France Canada United Kingdom Georgia South Korea Japan Netherlands Netherlands France Poland Switzerland Spain Guatemala Spain Turkey Taiwan Thailand Singapore Indonesia Australia Japan Taiwan Italy Romania Malaysia Norway
39. combining loyalty and special offers at POS moment (e.g. receiving a coupon based on profile, purchase)
40.
41. Sea Change Traditional Sea Changes (old school) Fixed line telecommunications mobile Usage of bank branches as cash in/out points ATMs and electronic funds transfer (EFT) A new sea change? The “intelligence” in mobile phones first generation mobile phones, address books, SIM card vs. handset – who owns the data? Nokia or SingTel? App stores vs. operators? Will your bank issue your credit card in the future, or will T-Mobile or will the Apple Appstore? NFC and the “secure element” – GSMA is pushing for SWP and the UICC as the SE choice, but with appstore dynamics and these consumer electronics manufacturers able to securely provision card personalisation information to NFC phones directly and world-wide, will the local MNOs be able to play a role? History says no, they will be always marginalised? However, what of banks? How are national banking regulators going to deal with this? SEA CHANGE http://en.wikipedia.org/wiki/Sea_change_(transformation)
42. The Challenge: How to generate successful formulas? Inexpensive, Standardised Savings Products Currently has / uses another financial product Redistribution Zone Too poor Target / Addressable Market Excluded by design Does not have access to the product Agents, Branchless Banking, Mobile Development Zone Excluded by default Does not have / use a financial product Awareness & Usability Campaign Does not want the product Has access to the product, but does not use it Enablement Zone Potential users Based on: http://www.bankablefrontier.com/assets/pdfs/access-frontier-as-tool.pdf
43. Have a great two days! Dan Armstrong Takashi Mobile | Financial Services Rapenburgerplein 81 1011 VJ Amsterdam The Netherlands www.takashimobile.com dan.armstrong@takashimobile.com +31 652 085 071
Notas del editor
KPIs are notoriously hard to come by, save for some isolated reports and anecdotal evidence. (I suggest that in this conference we share quantities and qualitative results where possible.) This will change, with the maturity of this marketplace, and – as with all branches of industry – things will continually develop and grow, major influences and drivers of the market and its products will shift, and we (banks, mobile operators, IT services suppliers, consumer electronics manufacturers, regulators) will have to change with them.
Sea-change or seachange is a poetic or informal term meaning a gradual transformation in which the form is retained but the substance is replaced, in this case with a marvellous petrification. It was originally a song of comfort to the bereaved Ferdinand over his father's death by drowning. The expression is Shakespeare's, taken from the song in The Tempest, when Ariel sings,"Full fathom five thy father lies,Of his bones are coral made,Those are pearls that were his eyes,Nothing of him that doth fade,But doth suffer a sea-change,into something rich and strange,Sea-nymphs hourly ring his knell,Ding-dong.Hark! now I hear them, ding-dong, bell.“The term sea-change is often used in a manner similar to Shakespeare's original context. For example, a character from literature may transform over time into a better person after undergoing various trials or tragedies, i.e. "There is a sea change in Scrooge's personality towards the end of the play." Likewise, a community might undergo a sea-change when faced with exposure of their petty jealousies or prejudices. Like the term Potemkin village, sea-change has also been used in business culture. In the United States, sea-change is often used as a corporate buzzword. In this context, it need not refer to a substantial or significant transformation, but can indicate a far less impressive change.[1]