Mobile Banking and Payments


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Mobile Banking and Payments

  1. 1. Mobile Banking and PaymentsReport Details:Published:September 2012No. of Pages: 95Price: Single User License – US$3800Synopsis•This report addresses the following key points:•The mobile banking phenomenon explained•Trends among emerging and developed markets•Mobile banking and mobile payments defined•Importance of mobile as a marketing tool and as a customer retention strategy•Mobile banking case studiesAt the beginning of 2011, 30% of mobile phone users in developed markets used a mobile bankingservice on their mobile phones at least once. By 2015 however, a number of forecasts expect atleast 50% of US mobile users to be conducting transactions from their mobile devices, doublingthe 25% utilization rate in 2011. Despite the success of mobile banking apps, the future of mobilebanking is likely to be dominated by browser-based solutions, due to the convergence of PC-based and mobile internet. The mobile financial service adoption by consumers will growsignificantly during the next few years, exceeding the use of online banking by 2015. By offeringmobile financial services, banks can reasonably expect to increase their sales by as much as60%, while research has shown that implementation of such technology can reduce the cost ofacquiring a new customer by 20% due to the increased effectiveness of mobile-related customeracquisition marketing.Scope This report will allow you to:•Analyze the growth of the overall mobile industry•Understand the role of technological development in the growth of mobile banking•Gain insight into the technology and infrastructure supporting electronic payments•Understand how banks are using mobile banking to beat the competition•Examine the key features of mobile financial servicesKey highlights•Banks in developed markets should sharpen their marketing so that customers have a better understanding of the added value of mobile banking services.•Mobile banking needs to be part of a multi-channel strategy able to increase customer acquisition and loyalty rates.
  2. 2. •There are potential channel savings to be made, but above all there is an opportunity for banks to increase sales through new value-added services.•Younger generations seem to be fascinated by modern data and telecommunication services and have a good perception of institutions that offer mobile financial services.Reasons to buy•Assess the prospects for mobile banking and payments•Find out how additional revenue can be raised through value added services•Review the strategic and operational issues in the mobile banking sector•Study the profiles of leading banks within the mobile banking arenaGet your copy of this report @ points covered in Table of Contents of this report includeTable of Contents1 EXECUTIVE SUMMARY2 MOBILE INDUSTRY GROWTH IS SHAPING NEW SCENARIOS FOR MOBILE BANKINGAND PAYMENTS2.1. The new frontier for mobile banking services2.2. The global penetration of mobile phone subscriptions has doubled since 20002.3. Mobile network operators: the new entrants into mobile financial services2.4. Mobile evolution expected to increase internet penetration: 3G networks in 159 countries in20112.5. Mobile handset manufacturers: What is their role in mobile financial services?2.5.1. Handset producers and banks: The Nokia Money case2.5.2. Mobile operating systems and mobile payments: The Google Checkout case2.6. Mobile growth and the technological revolution: opportunities for mobile banking andpayments2.6.1. Developed economies2.6.2. Emerging economies2.6.3. Anytime and anywhere: The convenience of mobile financial services for consumers2.7. What are the key features of mobile financial services?2.7.1. Ubiquity2.7.2. Immediacy2.7.3. Localization2.7.4. Instant connectivity2.7.5. Proactive functionality2.7.6. High security2.8. What are the advantages of mobile financial services?2.8.1. Context-specific services2.8.2. Spontaneous decisions
  3. 3. 3 THE EVOLUTION OF MOBILE BANKING3.1. Mobile banking on the rise: 185 million active users in 2011 and 550 million projected in 20163.2. Mobile banking: The 24-hour bank3.2.1. Mobile accounting:3.2.2. Mobile brokerage3.2.3. Mobile financial information3.3. The quest for supremacy: Technological platforms for mobile banking3.3.1. Message-based banking (SMS)3.3.2. Browser-based banking (WAP)3.3.3. Application-based banking (APP)3.4. What are the future platforms for mobile banking?3.4.1. Key findings4 MOBILE BANKING IN DEVELOPING COUNTRIES4.1. Mobile banking: unlocking the door to basic financial services4.2. The mobile money opportunity: 2 billion unbanked mobile subscribers in 20124.3. Money in the bank: the savings that arise from mobile money for banks and consumers4.4. How do the unbanked use mobile money?4.5. Case studies in South Africa4.5.1. A successful bank-led model: The Wizzit Bank case4.5.2. Transact account launched to target unbanked: ABSA Bank4.5.3. A successful mobile operator-led model: M-Pesa4.6. Mobile expected to stimulate P2P payments in Latin America4.6.1. DineroMail and MercadoPago4.6.2. Person to Person (P2P)4.6.3. Email billing4.6.4. Online bill payments4.6.5. Mobile transfers4.6.6. Key Latin American P2P service launches4.7. Driving market opportunities: remittances, savings and payments4.8. The international and domestic remittances market opportunity4.9. Savings and payment opportunities4.9.1. Savings and loans repayments4.9.2. Bill payments4.9.3. Government and commercial payments4.10. Key regulatory factors affecting the mobile banking opportunity4.10.1. Cash in/cash out4.10.2. Know Your Customer (KYC)4.10.3. E-banking4.11. How to conquer emerging markets: strategic considerations5 MOBILE BANKING IN DEVELOPED COUNTRIES5.1. Channel extension and value-added services expected to improve customer satisfaction5.2. The cost structure of mobile banking
  4. 4. 5.3. Whats in it for me? The value of mobile banking to the banks5.3.1. Pricing mobile banking5.4. Training your sights: Identifying the target segment for mobile financial services5.5. The choice of a new generation: how to target Generation Y5.5.1. Preference management5.5.2. Security and usability5.5.3. Personal financial management (PFM)5.5.4. A successful targeting strategy for Generation Y: the Sun National Bank case5.6. How to implement a successful mobile banking strategy5.6.1. Integration5.6.2. A triple-play solution5.6.3. Adaptable and extended functionality5.6.4. Bank-centric5.6.5. Proven for premium services5.6.6. Flexible enrolment5.7. A well implemented mobile banking strategy: Unicredit and La Caixa5.8. Mobile Banking Case Studies: TowerGroup5.8.1. Middle East and Africa Region5.8.2. Western and European Region6 SECURITY OF MOBILE BANKING AND PAYMENTS6.1. Security issues in mobile payments6.2. Security - Barrier to mobile banking growth6.3. European banks focus on fraud prevention measures6.3.1. Anti-fraud data sharing system - Hunter6.4. Voice biometrics in mobile banking and payments6.4.1. National Australia Bank (NAB)6.4.2. Westpac (Australia)6.4.3. Bank Leumi (Israel)7 CHAPTER 6: THE FUTURE OF MOBILE PAYMENTS7.1. Mobile payments increasing:7.2. New trends and consumer habits in the payments industry7.3. Mobile payments: applications, business models and technologies7.4. NFC mobile payments7.5. P2P mobile payments: remote and proximity-based7.5.1. Mobile commerce platforms7.6. Mobile payments in developing countries: an overview7.7. Mobile payments in developed countries: an overview7.7.1. Europe7.7.2. US7.7.3. Japan7.8. A driving market opportunity: mobile content payments (micropayments)7.9. A successful platform for micropayments: the PayForIt case
  5. 5. 7.10. New landscapes for payment systems providers: social networks and gaming7.11. Market sizing of advance payment market and mobile paymentsList of TablesTable 1: Top mobile internet markets, Q4 2011Table 2: Worldwide mobile device sales and market shares, 2010-2011 (Millions)Table 3: Global mobile handset shipments and market shares, Q1 2012 (Millions)Table 4: Merchant fees for processing sales thorough Google CheckoutTable 5: Effects of mobile, internet and banking infrastructures in developed and emergingmarketsTable 6: BRIC countries: mobile connections, growth and penetration, 2011Table 7: Comparative estimates of mobile banking users in the USTable 8: Mobile accounting servicesTable 9: Mobile financial information services:Table 10: Wireless penetration rates in developing regionsTable 11: Percentage of banked households per geographical region, 2009Table 12: Comparison between branchless banks and traditional banking services in developingcountriesTable 13: The value proposition of mobile money solutions for banks and mobile operatorsTable 14: Factors determining country readiness for mobile banking servicesTable 15: Examples of banking groups offering mobile banking appsTable 16: Mobile payments users (Millions)Table 17: Business models for mobile paymentsTable 18: Mobile payment providers in IndiaTable 19: Examples of mobile payment initiatives for different services in EuropeList of FiguresFigure 1: Mobile banking reached the 100 million users threshold in 4 yearsFigure 2: Mobile subscriptions per 100 inhabitants (2006-2011E)Figure 3: Internet subscriptions per 100 inhabitants (2006-2011E)Figure 4: Mobile cellular subscriptions by geographical region (millions)Figure 5: Mobile operating systems forecast market shares, 2011-2015Figure 6: Opportunity areas for mobile banking and paymentsFigure 7: Brand Association Map for mobile banking in the USFigure 8: Mobile banking transactional users - regional estimates, 2011Figure 9: Penetration of mobile banking among US mobile users, 2008-2015 (% of total)Figure 10: The number of mobile banking customers in Hungary doubled between 2006 and 2010Figure 11: Value added of mobile money services for banks, MNOs and customersFigure 12: Examples of mobile money deploymentsFigure 13: Cost-to-serve savings of a mobile MFI or bankFigure 14: Cost savings for clients of a mobile MFI or bankFigure 15: Comparison between the pricing for branchless banking and traditional bankingservicesFigure 16: Average price for mobile banking services across developing economies
  6. 6. Figure 17: M-PESAs growth in revenuesFigure 18: Volume of remittances globally and categorized by region (2008-2011)Figure 19: Top 10 remittance recipients in 2011 (US$ billion)Figure 20: Average percentage fee on a US$200 remittance from G8 nations to developingcountriesFigure 21: Per-transaction cost by banking channel ($)Figure 22: Simulated ROI from cost reduction through mobile banking servicesFigure 23: Consumer perceptions of Asian banks offering mobile banking servicesFigure 24: The importance of social networks and web communities for bank relationshipsFigure 25: Sun National mBanking App interfaceFigure 26: Concern over security in mobile banking services 2010Figure 27: Annual credit card fraud rates in UK, 2006-2010Figure 28: Expected growth in number of NFC-enabled phonesFigure 29: Usage of mobile payments in JapanFigure 30: Growth of the micropayments industry in Europe (2010-2015)Figure 31: Percentage of consumers using micropayment providers in the US and EuropeFigure 32: Virtual goods market revenues in the US (US$ billion)Figure 33: Advance Payments: Global Market SizeFigure 34: Mobile payments: drivers of growthFigure 35: Issues significant for mobile paymentsFigure 36: Important features for mobile paymentsContact: for more information.