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M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
M-Commerce World Summit 2011 - Introduction
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M-Commerce World Summit 2011 - Introduction


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Slides accompanying the introduction to the M-Commerce World Summit 2011, 06-07 April 2011, Singapore

Slides accompanying the introduction to the M-Commerce World Summit 2011, 06-07 April 2011, Singapore

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  • 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]
  • Transcript

    • 1. M-Commerce WorldSummit 2011
      06-07 April, Singapore
    • 2. Mobile Banking and Payments are Mainstream
    • 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
      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
    • 6. There are plenty of possibilities and combinations.
    • 7. How do we characterise these guys?
    • 8. How do we characterise these guys?
    • 9. and of course, full-service mobile banking …
    • 10. How do we characterise these guys?
    • 11. Mobile Banking and Payments SWOT
      • Low internet penetration & high mobile penetration make great MB opportunity
      • 12. Other direct banks may not be highly active currently in MB
      • 13. MB applicable to almost all segments, and certainly the high-growth areas (current, checking, savings, under-banked, other regions)
      • 14. Bundled packages (e.g. incl. debit card) can be sold / distributed independent of branch locations
      • Low-cost development
      • 15. High scalability
      • 16. Revenues and cost-savings possible
      • 17. Innovative, cost-effective tool for bank customers
      • 18. Bank “on the go” reinforces virtualisation (alternate channels) strategies
      • 19. Great way to increase customer #s substantially
      • 20. MB works well as bundled addition to almost all account types
      • Time-to-market critical, to maintain differentiation vs. other banks
      • 21. Unilateral initiatives may be popular if pushed strongly. Banks must stay ahead/in-line with (e.g.) bill payment partners
      • Bank / mobile operator product portfolio somewhat limited, thus limitations possible in MB functionality
      • 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?
      … 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?
      1.) Let’s explore our real motivations & associated benefits.
      2.) Let’s look at the real revenue potential for MFS in our markets.
    • 25. How do we characterise these guys?
    • 26. Some NFC Trials & Products: Ready for Prime Time?
      = proposed for, or existing commercial roll-outs
      Czech Republic
      United Kingdom
      South Korea
    • 27. Some NFC applications categories
      1. Card Emulation Applications
      replacing contact cards, magstripe, contact-chip cards, bar code products
      • payment cards
      • 28. loyalty, discount and membership cards
      • 29. access control (e.g. schools, office buildings, etc.)
      • 30. public transportation cards
      2. Elimination of Other Physical Goods
      in lieu of paper tickets, coupons, etc.
      • coupons, in-store formulas and tours, bonuses, recommendations, “recycling receipts”, etc.
      • 31. redemptions of other received mobile coupons or loyalty points
      • 32. linked NFC applications between stores, locations and in time (“I was there and gathered points.”)
      • 33. event ticketing, flight ticketing
      • 34. tourist info., maps and recommendations
      3. New Business Models
      enabling new end-user tools by providing NFC-aware applications and intelligence in the mobile phone
      • smart-posters delivering information, coupons or links to end-users at specific locations
      • 35. in-store shopping formulas (shopping lists, allergy warnings, recommendations for alt. products)
      • 36. asset management applications, logistics apps
      • 37. Location-based games using NFC
      • 38. NFC P2P applications
      4. Combinations w/Connectivity
      1, 2 or 3 combined with a mobile application or online connectivity to all more value than a card transaction
      • triggers that provide value-added info. (e.g. membership levels, spending overview, etc.)
      • 39. combining loyalty and special offers at POS moment (e.g. receiving a coupon based on profile, purchase)
      • 40. combinations with other connected application features (shopping list + payment + loyalty)
    • How do we characterise these guys?
    • 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?
    • 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:
    • 43. Have a great two days!
      Dan Armstrong
      Takashi Mobile | Financial Services
      Rapenburgerplein 81
      1011 VJ Amsterdam
      The Netherlands
      +31 652 085 071