Luup Presentation on Mobile Finance trends

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Presentation by Thomas Bostrøm Jørgensen of Norwegian mobile financial solutions provider Luup on the latest key trends in mobile finance, payments and banking.

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Luup Presentation on Mobile Finance trends

  1. 1. Mobile Payments: The Battle for the Future Presented by Thomas Bostrøm Jørgensen From mobile payments solutions provider Luup 26 November 2009 Financial Services Club, London Mobile Payment Solutions © 2009 Luup 1
  2. 2. Speech focus • Which contrasting mobile payments business models compete for supremacy? • Can bank-led models succeed in equal measure in developing and developed countries? • Which differentiating drivers, challenges and opportunities define mobile payments markets? • Why is this business worth fighting for? • What does a blueprint for future bank-led mobile payments roll-outs look like? © 2009 Luup 2
  3. 3. Luup’s credentials • Mobile payments solutions developer and operator since 2002 • First company to hold a full European e-money license • Worldwide growth business with high profile backers • Partnerships with FIs at the heart • Full service set for retail banks, corporate banks and money transfer organisations © 2009 Luup 3
  4. 4. P2P Money transfer demonstration © 2009 Luup 4
  5. 5. Battleground and protagonists • Bank-led models mainly in developed countries offer banking service extensions • MNOs-led models mainly in developing countries with airtime and stored value accounts for new market segments • Partnership models are emerging • Current demarcations show MNOs are capturing opportunities and revenue ahead of banks © 2009 Luup 5
  6. 6. A business worth fighting for CGAP statistics: • Mobile payments market worth as much as £365 billion by 2013 • 110 million users in Europe alone by 2014 • 364 million unbanked customers to be reached by agent-networked mobile banking Luup & Evaluserve new statistics: • 15 million migrant workers in Kuwait, Saudi Arabia and the UAE - 80% without bank account! • Migrants remit 50% of salary home, totaling €2.373 billion a month © 2009 Luup 6
  7. 7. MNO-led models leverage agent networks © 2009 Luup 7
  8. 8. Regulators stirring over MNOs-led models • MNOs weaknesses: from restricted user access to lacking banking knowledge • Regulators’ concern: from security and impact on financial systems to agent network management • M-Pesa led to introduction of Bill to tackle ‘disaster waiting to happen’ • Banks can ride to the rescue, yet time is of essence © 2009 Luup 8
  9. 9. Bank-led models • Cost-efficient extension of banking services Banks taking the lead • Moving beyond mobile banking to lucrative mobile payments “Our partnership with Luup will enable Deutsche Bank to shape the • Opportunities for Banks push ahead without future direction of the mobile MNOs payments space.” Harold Young, Global Head of Payment Products, Deutsche Bank GTB • From global transactions to corporate mobile payments and authorisation • Beware MNOs muscling in and the impact of the PSD © 2009 Luup 9
  10. 10. The partnership models • Entire industry seeks to declare a truce and work together • Banks tie up with solutions vendors to enter negotiations with stronger assets • Country specific approaches and focus on partners’ core competencies • Wide range of contentious issues still to be resolved • Commitment to ‘first time right’ is needed © 2009 Luup 10 10
  11. 11. Blueprint for bank-led models • Different countries, different approaches • 2 phones per person and unbanked population in UAE opened opportunities for NBAD • Arrow launched; includes first person-to-person money transfer service of its kind • Challenging, bespoke innovations dominated the implementation © 2009 Luup 11
  12. 12. My questions & Your questions Thank you Thomas Bostrøm Jørgensen From mobile payments solutions provider Luup 26 November 2009 Financial Services Club, London Mobile Payment Solutions © 2009 Luup 12

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