Showing posts with label mobile banking. Show all posts
Showing posts with label mobile banking. Show all posts

Friday, January 20, 2012

Positioning and game players of Mobile banking

Before the outbreak of the value chain, which will no doubt encourage greater competition and the arrival of third actors in the market, banks and telecom operators will be required to define their strategy and their positioning. One of the key points is the estimated return on investment, for which the measure should take into account the direct gains but also all the effects of training related to the increase of banking. Indeed, the issue of such offers goes beyond the technological factor or fad to be a real growth opportunity for the nation as a whole.

In this context, it is not impossible to witness the creation of package deals, exported from one country to another. In any case, the path followed by etransact, located in Ghana, Nigeria, Zimbabwe, and whose development is expected in Uganda, Sierra Leone and Côte d'Ivoire. Note also that, regardless of whether the diversity of services offered mobile banking from one country to another, users mainly use the functions of transfers and payments for goods and services. The development of package deals may still run into the organization and regulation of national payment systems, from one country to another.

Moreover, central banks are closely monitoring the various initiatives in order to avoid seeing the development of virtual systems outside of the financial system in place. Aspects of compliance, money laundering and the fight against terrorist financing are elements in the center of concern in the context of these new offerings.

Tuesday, January 10, 2012

Key Factors For Mobile Banking Development

      The challenge lies primarily in the provision of services with high added value for the consumer, may cause the adhesion of many banking services. And the future service will include offering a simple purchase option, services tailored to the application and a relatively low cost of access. However, the launch of a range of m-banking is subject to several key success factors. The business model is at the heart of these concerns, with the crucial question of the relationship between banks and mobile operators.

     Each player must assess, based on its strategic objectives, the risk he is willing to incur and also the regulatory framework imposed, he intends to occupy the position on the various links in the value chain of the m-payment (marketing, distribution, order processing, invoicing ...). It can also pass through the entry of third-party entities, which are the link between the banking and telecom players. The issue of interbank arises also at the heart of the debate. Again, several options should be examined, such as the establishment of a proprietary or a partnership with an international network. At the heart of this problem: the cost of fees charged and the conditions of access to clearing systems. The risk to develop several communities’ compartmentalized payments (by bank or operator) can not be excluded and would greatly reduce the potential scope of m-banking offerings.  Finally, the question of the customer experience will again be crucial, both in terms of value added services offered, pricing grid, but also simplicity of the customer experience.

Monday, January 9, 2012

The Mobile Banking Revolution

In most emerging countries, the development of retail banking is often hampered by low levels of banking structurally observed with individual customers. Indeed, few developing countries where the banking exceeds 20%, in contrast to developed countries where this indicator is generally above 85%. The growth potential for retail banking is not negligible, especially on the activities of "everyday banking" (account management, payments, and additional services). A take-off rate would not only allow banking institutions to expand their revenue sources by increasing the volume of commissions, but also to address a broader customer base to other types of offers (consumer credit, micro credit or home loans ...).

This is due to several structural factors. Can be particularly observed that most of these economies are predominantly rural, which results in a concentration agencies around major cities. Accumulated in a heterogeneous networking transport, this makes it difficult to access agencies for the majority of the population. In addition, cash payments are not well developed due to the high cost of access to financial services and strong tradition of cash payments.

However, such a finding should not be seen as inevitable. In some emerging countries, the high penetration of mobile (80%), combined with the introduction of innovative services, has advanced strong, playing as a true catalyst for banking services. Senegal, Ghana, India, is examples of countries where commercial offers mobile payment grew at a brisk pace (remittances from person to person through SMS, balance inquiries, payment for goods and services ...). In the Philippines, for example, Globe Telecom has launched its service in 2004 GCash in partnership with a network of banks. This allows customers to send and receive funds to repay their deadlines automatically microcredit, pay bills in small businesses, via a managed e-wallet from the mobile. Thus, the bank is now in the pocket of the customer : the operations normally performed at a desk are now through the mobile.