The Business Case for Mobile Banking


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The Business Case for Mobile Banking

  1. 1. The Business Case for Mobile BankingReport Details:Published:September 2012No. of Pages: 134Price: Single User License – US$3800Synopsis•Mobile banking is an emerging new trend for both bankers and consumers. It has changed the traditional methods of banking and its usage has been improved not only in developed countries but also developing countries•This report covers the usage of mobile banking in various countries across the globe•This report provides data on mobile banking service penetration globally•This report covers the technological advancements which enhance the mobile banking system•The report provides information on key developments in developing markets such as China and IndiaThe number of mobile phones in use around the world in 2011 reached six billion while thenumber of mobile banking users worldwide reached 300 million with adoption of the service indeveloped countries growing significantly. Mobile networks now cover between 85-90% of theworld’s population. Modern data and telecommunication services appeal to younger generations,meaning that they have a good perception of institutions that offer mobile financial services. Banksand mobile carriers are moving towards more sophisticated techniques of marketing as a result ofsecurity and user-friendly concerns. In order to enhance their marketing, banks and mobilecarriers are using IT technology for ensuring security and user friendliness. Mobile banking is notonly used for basic transactions of online banking, such as checking balances, viewing recenttransactions, paying bills and transferring funds but also for marketing of the various products andservices offered by banks.Scope This report will allow you:•To understand the future potential of mobile banking•To understand its usage both in well developed countries and developing countries•Gain insight into the key technology developments for electronic payments via mobile•To analyze the mobile advertising marketKey highlights•Mobile banking is replacing branch approach banking.•Mobile payments are replacing paper-based payments.•Advertising on mobiles is replacing traditional electronic marketing.
  2. 2. •Use of mobiles has grown faster than broadband connections.Reasons to buy•Provides detailed analysis of mobile banking services globally•Special emphasis on the opportunities available in emerging markets•The report also focuses on various mobile payment technologies emerging in the global market•Provides in-depth analysis of the challenges faced by the mobile banking systemGet your copy of this report @ points covered in Table of Contents of this report includeTable of Contents1 Executive Summary2 Introduction2.1 Mobile Banking Defined2.2 The Development of Mobile Banking2.3 The Relationship between Banks and Mobile Carriers2.4 Summary3 The Business Case: Mobile Industry Growth Shaping New Scenarios for Mobile Banking3.1 The New Frontier for Mobile Banking Services3.2 The Global Penetration of Mobile Phone Subscriptions Doubled since 20003.3 Mobile Network Operations: The Latest Passenger on the Mobile Financial Services Express3.4 Mobile Evolution to Amplify Internet Penetration: 3G Networks in 159 Countries3.5 Mobile Handset Manufacturers: What is their Role in Mobile Financial Services?3.6 Handset Producers and Banks: The Nokia Money Case3.7 Mobile Operative Systems and Mobile Payments: The Google Checkout Case3.8 Mobile Growth and the Technological Revolution: Opportunities for Mobile Banking andPayments3.8.1 Developed economies3.8.2 Emerging economies3.9 Anytime and Anywhere: The Convenience of Mobile Financial Services for Consumers3.1 What are the Key Features of Mobile Financial Services?3.10.1 Ubiquity3.10.2 Immediacy3.10.3 Localization3.10.4 Instant connectivity3.10.5 Pro-active functionality3.10.6 High security3.11 What are the Advantages of Mobile Financial Services?3.11.1 Context-specific services3.11.2 Spontaneous decisions3.12 Summary
  3. 3. 4 Generating Revenue Through Value-Added Services4.1 Leveraging the Unique Characteristics of the Mobile Channel4.2 Mobile Banking Products4.2.1 Basic transactions4.2.2 SMS alerts4.2.3 Mobile brokerage4.2.4 Transaction authentications4.2.5 Mobile remote cheque deposit4.2.6 Mobile payments4.2.7 Non-contactless mobile POS payments4.2.8 Mobile content payments4.2.9 Remittances4.2.10 Instant SMS loans4.2.11 Personal Financial Management4.3 Summary5 Enhancing Other Delivery Channels5.1 Online Channel5.2 ATM Channel5.3 Call Centre and IVR Channel5.4 Branch Channel5.5 Cards5.6 Summary6 Marketing via the Mobile Channel6.1 Advantages of Mobile Marketing6.2 The Mobile Marketing Industry6.3 Consumer Reaction to Mobile Marketing6.4 The Role of Customer Permission6.5 Regulatory Considerations6.6 OCBC Bank Singapore – Integrating CRM into the Mobile Channel6.7 Seven Mobile Marketing Campaigns6.7.1 Citi - Interactive mobile advertisements in USA Today6.7.2 HSBC UK - Bluetooth messages sent to people passing its branches6.7.3 HSBC US - Text interactions in street performances6.7.4 Barclays - SMS game for youth accounts6.7.5 BBVA - Offering mobile downloads in CSR campaign6.7.6 Banesto Bank – Mobile interactivity with in-branch digital signage6.7.7 JP Morgan Chase – Text-to-win US Open tickets6.8 Mobile Delivery of Merchant Coupons and Offers6.8.1 Alternative payments providers combining marketing with payments6.8.2 Banks linking promotions with mobile payments6.8.3 Tyfone and Bank of Oswego - An early trial6.8.4 Visa and Chase Bank mobile coupons
  4. 4. 6.8.5 Firethorn Holdings6.8.6 ClairMail’s Free Money6.9 Should Banks be Delivering Merchant Coupons and Offers?6.1 Summary7 Banking the Unbanked7.1 The Unbanked Market7.2 Mobile as a Distribution Channel7.3 Mobile as a Gateway Product7.4 Summary8 Choosing a Technology Platform8.1 Voice-Based Platforms8.1.1 Call centre / interactive voice response8.1.2 First Direct Video Banking8.2 Message-based Platforms8.2.1 SMS8.2.2 USSD8.2.3 MMS8.2.4 Mobile email8.2.5 Instant messaging8.3 Browser-based Platforms8.3.1 Yodlee8.3.2 Accessing regular online banking on the mobile phone8.4 Application-based Platforms8.4.1 WAP versus app8.4.2 Back-end integration8.4.3 Customer support functionality8.5 Summary9 Security Considerations9.1 User Authentication9.1.1 Finding the balance between security and usability9.1.2 Challenge questions9.1.3 Two-factor authentication9.1.4 Voice authentication9.2 Encryption9.3 Security of Device9.4 MoPho Phishing9.5 Viruses9.6 Summary10 Usability Considerations10.1 Summary11 Marketing Considerations11.1 Phased Rollout is Better
  5. 5. 11.2 Marketing for Brand Enhancement11.3 The Importance of Consumer Education11.4 Target Offerings to Specific Customer Segments11.5 Summary12 United States12.1 The Relationship Between Banks and Carriers12.2 Firethorn12.3 mFoundry12.4 ‘Carrier Agnostic’ Platforms12.4.1 ClairMail/Monitise12.4.2 MShift12.4.3 Bank of America12.5 Multiple Platforms12.5.1 Wells Fargo12.6 Future Developments12.7 Summary13 United Kingdom13.1 The Mobile Banking Market13.2 Monilink13.3 First Direct13.4 Barclays13.5 Future Developments13.6 Summary14 Germany14.1 The Mobile Banking Market14.2 Mobile Banking Offerings14.3 Deutsche Postbank14.4 Future Developments14.5 Summary15 South Africa15.1 The Mobile Banking Market15.2 First National Bank15.3 MTN Banking15.4 Wizzit Bank15.5 Future Developments15.6 Summary16 New Zealand16.1 The Mobile Banking Market16.2 National Bank of New Zealand16.3 KIWIBANK16.4 PSIS16.5 Future Developments
  6. 6. 16.6 Mobile Banking in Australia16.7 Summary17 Key Emerging Markets17.1 China17.2 India17.3 Indonesia17.4 Nigeria17.5 Brazil17.6 Summary18 Glossary19 Appendix19.1 Methodology19.2 Contact Us19.3 About Timetric19.4 DisclaimerList of TablesTable 1: Active Mobile Broadband Subscriptions by Region in 2010 and 2011Table 2: Worldwide Mobile Device Sales and Market Shares, 2010–2011Table 3: Global Mobile Handset Shipments and Market Shares, Q1 2012Table 4: Merchant Fees for Processing Sales Through Google CheckoutTable 5: Effects of Mobile, Internet and Banking Infrastructures in Developed and EmergingMarketsTable 6: BRIC Mobile Connections and Penetration, 2011Table 7: Business Models for Mobile PaymentsTable 8: Mobile Advertising Revenue by Region, Worldwide, 2010-2015 (Millions of Dollars)Table 9: Worldwide Mobile Device Sales to End Users by Vendor in Q4 2011 (Thousands of Units)Table 10: Mobile Subscribers in China by Operator (March 2012)Table 11: Telecom Subscribers in IndiaList of FiguresFigure 1: Screenshot of RaboMobiel Home PageFigure 2: Mobile Banking Reached 100 Million Users in Four YearsFigure 3: Mobile Subscriptions per 100 InhabitantsFigure 4: Internet Subscriptions per 100 InhabitantsFigure 5: Mobile Cellular Subscriptions by Geographical Region (Millions)Figure 6: Internet Subscriptions by Geographical Region (Millions)Figure 7: Mobile Operative Systems Forecast Market Shares, 2011-2015Figure 8: Opportunity Areas for Mobile Banking and PaymentsFigure 9: Brand Association Map for Mobile Banking in the USFigure 10: Most Common Online Banking Activities of US ConsumersFigure 11: Screenshot of E*TRADE Mobile Brokerage Home PageFigure 12: Screenshot of Mitek Systems’ Mobile Deposit Capture Home PageFigure 13: Expected Growth in Number of NFC-enabled Phones
  7. 7. Figure 14: Octopus, Suica and Oyster CardsFigure 15: Screenshot of Mobibucks Home PageFigure 16: Screenshot of PayMate Home PageFigure 17: Verrus Parking StickerFigure 18: Obopay Home PageFigure 19: M-Pesa Marketing PosterFigure 20: Screenshot of Smart Money Home PageFigure 21: Screenshot of GCASH Home PageFigure 22: Screenshot of ShopText Home PageFigure 23: Screenshot of Mobot Home PageFigure 24: Screenshot of Ferratum Home PageFigure 25: Monitise Home PageFigure 26: Blyk Home PageFigure 27: OCBC Mobile Banking Home PageFigure 28: Mocapay Home PageFigure 29: Mobile Banking Technological PlatformsFigure 30: Main Reasons for Not Using Mobile BankingFigure 31: Main Reasons for Not Using Mobile PaymentsFigure 32: The Growth of MalwareFigure 33: Mobile Threats Motivated by ProfitFigure 34: Mobile Threats by TypeFigure 35: Kiwibank Home PageFigure 36: Bank of America “Morris on Campus” CampaignFigure 37: mFoundry Home PageFigure 38: MShift Home PageFigure 39: Bank of America Online Mobile Banking DemoFigure 40: Wells Fargo Mobile Banking Home PageFigure 41: First Direct Mobile Banking Home PageFigure 42: Barclays Hello MoneyFigure 43: Deutsche Bank Mobile BankingFigure 44: FNB Mobile Banking Home pageFigure 45: MTN Banking Home PageFigure 46: Wizzit Bank Home PageFigure 47: New Zealand Mob SurveyFigure 48: National Bank Mobile Banking Home PageFigure 49: Kiwibank Mobile Banking Online DemoFigure 50: The Co-operative Bank Home PageFigure 51: FlashMeCash Home PageContact: for more information.