Mobile Financial Services - A Competitive and Fragmented Landscape

report december 2012

in collaboration with

report published in partnership with

mobile Financial ServiceS:A competitive(And frAgmented) lAndscApe

mobile Financial Service: a competitive (and fragmented) landscape

Published by Value Partners Management Consulting LtdKings Building, 7th Floor,16 Smith Square, London SW1P 3JJ, UK

In partnership withFiserv

In collaboration with Payments Card & Mobile

december 2012

Written and edited by: Francesco Burelli, Roger Clarke, Edward Clifford and Mark Weston

If you would like an electronic copy please write to: [email protected]

For more information on the issues raised in the report please contact:[email protected]@valuepartners.com

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report MoBILE FInAnCIAL SERVICES

Foreword 5

1 executive Summary 7

2 the mobile platForm’S role in the Financial ServiceS landScape 9 2.1 ThE MoBILE PLATFoRM’S CoMIng oF AgE In FInAnCIAL SERVICES 9 2.2 ThE CoMPETITIVE LAndSCAPE 12 2.3 ThE MARKET dRIVERS 13 2.3.1 MoBILE SERVICE PEnETRATIon 13 2.3.2 dEVICE And InFRASTRUCTURE EVoLUTIon 13 2.3.3 MoBILE FInAnCIAL SERVICE dEVELoPMEnT 17 2.4 ThE dEVELoPEd And dEVELoPIng WoRLd dIChoToMy 18

3 retail banking 21

3.1 SEgMEnT oVERVIEW 21

3.2 M-BAnKIng PRoPoSITIonS 21 3.3 M-PAyMEnTS PRoPoSITIonS – dEVELoPEd WoRLd 26

3.4 M-PAyMEnTS PRoPoSITIonS – dEVELoPIng WoRLd 31 3.5 IMPLICATIonS 33

4 private banking 35

4.1 SEgMEnT oVERVIEW 35 4.2 PRoPoSITIonS 35 4.3 IMPLICATIonS 38

5 corporate banking 39 5.1 SEgMEnT oVERVIEW 39 5.2 PRoPoSITIonS 39 5.3 IMPLICATIonS 42

6 innovation and FirSt-mover advantageS 43

7 concluSionS 44

ConTEnTS

4—5

mobile financial services have the potential to benefit consumers, corporates and financial institutions alike. when implemented effectively they promise to dramatically improve the efficiency of the financial services industry.


MoBILE FInAnCIAL SERVICES hAVE BEEn A TARgET oF dEVELoPMEnT And InVESTMEnT FoR ThE LAST FIFTEEn yEARS. AFTER A nUMBER oF – MoSTLy ShoRT-LIVEd – ATTEMPTS AT KICK-STARTIng ThIS nASCEnT ChAnnEL By VARIoUS PLAyERS In ThE FInAnCIAL SERVICES IndUSTRy, MoBILE BAnKIng And PAyMEnTS ARE noW ATTRACTIng REnEWEd InTEREST. ThIS hAS LEd To ThE ESTABLIShMEnT oF A nUMBER oF SUCCESSFUL BUSInESS ModELS And VALUE PRoPoSITIonS.

MoBILE FInAnCIAL SERVICES hAVE ThE PoTEnTIAL To BEnEFIT ConSUMERS, CoRPoRATES And FInAnCIAL InSTITUTIonS ALIKE. WhEn IMPLEMEnTEd EFFECTIVELy ThEy PRoMISE To dRAMATICALLy IMPRoVE ThE EFFICIEnCy oF ThE FInAnCIAL SERVICES IndUSTRy: ConSUMERS WILL no LongER hAVE To qUEUE AT BAnK BRAnChES To PERFoRM SIMPLE BAnKIng TRAnSACTIonS, CoRPoRATES MAy BE ABLE To do AWAy WITh CUMBERSoME PAyMEnT And TREASURy PRoCESSES, And InSTITUTIonS ThEMSELVES CAn dELIVER RIChER SERVICES In A MoRE CoST-EFFECTIVE MAnnER. ThE MoBILE ChAnnEL ThUS hAS ThE PoTEnTIAL To RAdICALLy TRAnSFoRM hoW MonEy IS MAnAgEd. hoWEVER FInAnCIAL InSTITUTIonS gEnERALLy hAVE BEEn SLoW To IMPLEMEnT ThIS nEW FoRM oF SERVICE dELIVERy, In ConTRAST To MAny TEChnoLogy And TELECoMMUnICATIonS CoMPAnIES. ThIS IS BECAUSE oF UnCERTAInTIES REgARdIng WhEThER A TAngIBLE RETURn on InVESTMEnT ExISTS, ThE LACK oF A CLEAR MoBILE STRATEgy AT BoARd LEVEL And A RISK-AVERSE ATTITUdE WhEn IT CoMES To TAKIng ThE LEAd In An EnTIRELy nEW And UnPRoVEn SECToR. ThIS hESITAnCE hAS LEFT A gAP ThAT non-BAnK PLAyERS hAVE ExPLoITEd, WITh PoTEnTIALLy dISRUPTIVE ConSEqUEnCES FoR ThE TRAdITIonAL BAnK-CUSToMER RELATIonShIP.

Foreword

6—7

ThE TIME oF MoBILE FInAnCIAL SERVICES SEEMS To hAVE FInALLy ARRIVEd. WIRELESS ConnECTIVITy ConTInUES To IMPRoVE WoRLdWIdE AS MoBILE BRoAdBAnd IS STARTIng To BECoME MAInSTREAM EVEn In dEVELoPIng EConoMIES. dEVICE CAPABILITIES ARE RAPIdLy IMPRoVIng, WITh ThE SMARTPhonE REVoLUTIonISIng ThE LEVEL oF SERVICES ThAT CUSToMERS CAn ExPECT To RECEIVE REMoTELy. ThE AVAILABLE SERVICES on oFFER ARE ALSo IMPRoVIng, AS nUMERoUS PLAyERS BECoME MoRE ExPERIEnCEd In FULFILLIng ConSUMERS’ REqUIREMEnTS, And ThoSE ConSUMERS BECoME MoRE CoMFoRTABLE WITh ThE ConCEPT oF MAnAgIng ThEIR FInAnCES ‘on ThE MoVE’. MoBILE FInAnCIAL SERVICES hAVE ThUS AdVAnCEd FRoM onE oF ThE MAny AREAS oF dEVELoPMEnT dURIng ThE “doTCoM BooM” oF ThE 90’S InTo A doMAIn ThAT IS noW BURSTIng WITh ACTIVITy. dESPITE ThE InCREASIng ATTEnTIon And InVESTMEnT ThAT MoBILE BAnKIng And PAyMEnTS ARE ATTRACTIng, ThEy hAVE yET To BE FULLy ExPLoITEd, WITh nUMERoUS ATTEMPTS BEIng MAdE By A WIdE VARIETy oF PLAyERS To CAPTURE A hUgELy FRAgMEnTEd MARKET. In ThIS RAPIdLy dEVELoPIng SECToR, ThIS REPoRT ExAMInES ThE dEVELoPMEnTS oF MoBILE BAnKIng And PAyMEnTS ACRoSS ThE RETAIL, PRIVATE And CoRPoRATE BAnKIng SECToRS. IT ThUS PRoVIdES A VALUABLE SnAP-ShoT oF ThE STATE oF An EMERgIng IndUSTRy And hIghLIghTS SoME oF ThE ISSUES And qUESTIonS To WhICh ‘TRAdITIonAL’ FInAnCIAL InSTITUTIonS MUST RESPond IF ThEy ARE To MAInTAIn ThEIR hISToRIC LEVEL oF ConTRoL oVER ThE BAnK-CUSToMER RELATIonShIP.

Serge Van damVP, Market Development,

Mobile Solutions Fiserv

Francesco BurelliPartner, Value Partners


In such a rapidly developing space, the need for a comprehensive overview of the competitive landscape is clear. In light of this, Value Partners has undertaken an analysis of the retail, corporate and private banking sectors, with a view to gaining insights regard-ing the propositions available and their implications.

Interoperability within the mass market will obviously be key to the develop-ment of this mobile technology, helping to promote network effects that facili-tate service expansion. This expansion becomes increasingly likely if financial service providers are able to leverage pre-existing assets such as a large cus-tomer base and/or brand power.

Financial institutions are finally begin-ning to realise the potential of the mo-bile platform as a means to offer their services, with mobile payment transac-tions in 2011 estimated to have been worth $163 billion. however, up to this point, financial institutions have not led innovation in their area. Telecom opera-tors have already spotted the potential benefits of mobile financial services, with more recent interest coming from internet-based third-parties and tech-nology providers.

Broadly speaking, there have been three main drivers for the growth of mobile financial services. These are increased mobile service penetration (generally in excess of 100% in the developed world), device and infrastructure evolution (with the smartphone and tablet offering ground-breaking new service platforms) and the development of increasingly sophisticated and attractive mobile services. however, there still exists a dichotomy between the developed and developing worlds, with affordability being a key barrier to the rollout of many complex and high-end services in emerging markets.

ExECUTIVE SUMMARy1

8—9

It is in the mass market sector of retail banking that most propositions in the mobile financial services landscape are currently located, with the service prop-ositions grouped into two categories. M-payment propositions are concerned with the making of payments, whilst m-banking relates to the management of personal accounts. It is interesting to note that mobile payments have become particularly common in the developing world where underlying in-frastructure is not able to support other forms of cashless payment.

In comparison to retail m-banking, corporate banking solutions have been slow to develop yet still appear to have huge potential. The 24/7 nature of mobile applications, user-friendly oper-ating systems and inherent portability should make them very attractive in the fast-moving business world. Again, it is important that consideration is given to the interoperability between multiple financial service providers within a busi-ness if this proposition is to develop.

In the private banking sector, mobile solutions are gradually being deployed onto more advanced devices. This has included both the development of smartphone technology and the take-up of tablet devices which, with their greater screen size and enhanced graphics, have the potential to improve the high-end customer experience. With this ongoing technological development and the adoption of these new tech-nologies, it is likely that private m-banking solutions will become the norm in the future. For early-movers in the financial services industry, the incor-poration of these services may prove to be a key differentiating factor between competing institutions.

however, a direct return on invest-ment is difficult to quantify, since most m-banking services are offered free of charge. In order to be successful within the competitive landscape, it is important that players entering the mobile finan-cial services market position themselves correctly. It is important they under-stand their clients’ needs, and seek to develop an appropriate business case that makes the most of the opportuni-ties afforded by this fluid and emergent sector. Ensuring a strong presence in this area will be essential for the long-term growth of financial service providers and may represent an area in which new market entrants could gain a foothold.


ThE MoBILE PLATFoRM’S RoLE In ThE FInAnCIAL SERVICES LAndSCAPE

2

1 Source: datamonitor – Mobile Payments.

2.1 The mobile platform’s coming of age in financial services

over the last two decades, the mobile phone has morphed from a high end, niche product to a ubiquitous proposi-tion. This has enabled the widespread growth of new mobile products, with location-based services and increased connectivity, which were previously un-imaginable. however, until recently, the success of many mobile-financial services has been limited:

• Asearlyas1997,Barclayswereoffer-ing customers access to their Bar-claycard and Barclays bank accounts on the move through a partnership with Cellnet. despite high initial expectations, uptake was low and the initiative was soon scrapped

• In1999,MeritaNordbankingGrouplaunched the world’s first WAP banking service in Finland. It enabled customers to monitor account and credit card transactions, perform account-to-account transfers and pay bills. however the low maturity of the underlying technologies with regards to data transfer speeds and screen sizes limited the initiative’s success

• In2000,adomesticm-paymentscheme was launched in Spain with participation from all mobile op-erators and the majority of financial institutions. Unfortunately, Mobipay saw very limited uptake and low growth despite a successful pilot in 2002 and by 2008 the scheme was processing only 2000 transactions a day. It was finally ended in 2009

• In2000,Payboxwaslaunchedasanm-transfer and m-payment solu-tion, backed by deutsche Bank and a number of strategic partners (e.g. oracle, Lufthansa Systems, IBM, Mobilkom Austria). Initial results were promising but it failed to gain traction and by 2002 the consumer facing m-payment solutions division was closed

despite the limited success of these services, early market forecasts were bullish, repeatedly stating that mobile financial services were on the cusp of spectacular growth. There were some firms that supported this idea, such as nTT docomo in the Japanese market, which had acquired 7 million users of its WAP m-banking services by 2000. however, examples like this were still the exception and the predictions of an m-payment market of €30 billion by 2002 failed to materialise. This predic-tion was subsequently re-adjusted to €30 billion by 20051, though even this greatly overestimated the actual market size.

Growth in value ($bn) and volume (bn) of m-payments and m-banking transactions

mBanking transactions and user numbers

10—11

Note: (1) Transactions defined as informational messages (e.g. balance enquiries) and transaction requests (e.g. fund transfers & bill payments). Source: Informa, Value Partners analysis.

Remote mPayments

Local (NFC) mPayments

Domestic Money Transfer

International Money Transfer

1,186.6

global mpayments transactions value ($bn)

global mpayments transactions number (bn)

90%

63%

97%

137%

247%

40%

100%

129%143%69%

1,898.9

359.2

2014

862.4

181.0

2013

473.5

110.9

2012

155.1

74.2

2011

162.9

+61%

+39%

53.1

2010

104.5

39.8

2009

70.9

29.8

2008

6,442.6

2015 CAGR08-15

mBanking number of users

Access / operation

Year-on-year growth

average number of access / operations per user

global mbanking number of transactions1 and user number (m)

1,000

1,400

1,200

800

600

400

200

150,000

250,000

200,000

100,000

50,000

40

20

60

80

100

120

140

167,62

126.9

2015

138,37

117.7

2014

105,20

107.7

2013

71,900

97.6

2012

43,300

88.9

2011

23,200

83.2

2010

11,500

80.6

2009

7%

5,400

80.6

2008


By 2009 however, with the improve-ments in mobile technologies, m-payments had begun to deliver the growth that had been forecast in the early 2000s with $45 billion of trans-acted revenues and strong year on year growth rates. By 2011, m-payments had become a strong revenue stream with estimated revenues of $1.6 billion in 2011 across the mobile money industry globally.

Two solutions in particular are behind the segment’s growth:

1. Remittance payments (i.e. international m-transfers)

2. Proximity m-payments (e.g. payments relying on near Field

Communication technology)

Both of these have compound growth rates of over 120% (2008-12), as shown below.

Global m-transaction value ($bn)

Source: Informa, Press clippings, Value Partners Analysis.

Source: Press clippings, Value Partners Analysis.

100%

Global revenue for mobile moneyindustry ($bn)

Growth of m-transactions by service (CAGR 2008-2012)

36%48%

124%

146%

Remittance Proximity m-payment M-banking Remote m-payment

growth driven by immigrant’s remittances to developing countries

growth mainly driven by developed countries

highly dependent on the uptake of nFChandsets

2008 2009 2010 2011

163,4

97,9

45,229,0

78%

2008 2009 2010 2011

1,6

0.8

0,50,2

12—13

2.2. The competitive landscape

despite its long history of development, the mobile money industry still shows characteristics typical of a nascent industry. It is highly fragmented, both globally and regionally, and even now remains largely unregulated. however, it is still possible to distinguish three forms of service provider from the vari-ous market players:

• Banks: financial service providers expanding channels for service de-livery through the addition of mobile as a stand-alone or complementary channel in addition to their existing distribution channels

• Mobilenetworkoperators(MNO): mobile telecom providers enter-ing the financial services space by providing a payment or deposit functionality

• 3rdpartyproviders(e.g.Google,Amazon, PayPal): internet services, e-commerce and internet wallet pro-viders entering the financial services space on the basis of an web-based value proposition

Both Mnos and banks have also ap-proached the market jointly in the form of a Mno or bank-led consortium.

Example of mobile financial services propositions

Bank

In 2007, Bank of Ameri-ca introduced a browser based service allowing customers to access account information, transfer funds, pay bills, etc; subsequently the offering was extended with SMS banking and smartphone apps

MNO

In 2007, the five UK Mnos launched Payforit as a joint venture, based on the Vodafone m-pay system. The scheme enables customers to pay for digital content and services below £10, via mobile phone, with the cost added to their phone bill or deducted from their credit

Third party providers

In 2005, PayPal intro-duced PayPal Mobile allowing customers to transfer funds and pay for goods purchased via eBay, relying on either a proprietary app or SMS based transactions


2.3 The market drivers

2.3.1 Mobile service penetrationglobally, mobile services have become ubiquitous across developed and developing countries. It is not unusual to achieve nationwide mobile penetrations well above 100%, where consumers have on average more than one mobile phone per person.

2.3.2 Device and infrastructure evolutionSince the first “brick” mobile phones of twenty years ago, devices and their sup-porting infrastructure have developed radically. These developments have enabled huge amounts of processing power to be incorporated within mobile devices and groundbreaking steps to be made with regards to the user interface, such as touch-screen and colour tech-nologies.

Source: World Cellular Information Service, Value Partners Analysis.

Mobile service penetration (% population)

northern america latin america

200

0

200

0

200

2

200

2

200

4

200

4

200

6

200

6

200

8

200

8

2010

2010

150% 150%

100% 100%

50% 50%

0% 0%

asia pacific africa

200

0

200

0

200

2

200

2

200

4

200

4

200

6

200

6

200

8

200

8

2010

2010

150% 150%

100% 100%

50% 50%

0% 0%

western europe eastern europe

200

0

200

0

200

2

200

2

200

4

200

4

200

6

200

6

200

8

200

8

2010

2010

150% 150%

100% 100%

50% 50%

0% 0%

14—1414—15

Illustration of smartphone technology

north America

39%

Western Europe

34%

Eastern Europe

13%

Latin America

9%

Asia Pacific

6%

Africa

3%

Source: World Cellular Information Service, Informa, Value Partners analysis.

Smartphone penetration (%), 2011Smart-phone penetration differs widely in the region, e.g.•Korea45%•Japan24%•China6%•India2%

SmS A simple way to communicate payment instructions over the mobile phone network, this channel is available in places with only basic mobile infrastructure

voice channel data can be modulated onto audio frequencies and sent down a mobile phone’s voice channel to a payment processing centre

touch screen Authentication made easier by customers signing the screen with their fingertips

high-resolution screen This technology allows pay-ment system to relay high-fidelity visual information, such as bar codes, to a reader

Sim card Can be used to store the “secure element” (SE) of a payment system. The SE is a digital Id of the payer which is stored in such a way that it cannot be com-promised, and can also include account data from several different banks, transport providers or loyalty cards. Some phones have separate slots for two SIM cards: one serving the normal require-ment to identify the phone to the network, the other provid-ing mobile wallet functionality. The SE can alternatively be stored on an Sd card

enhanced 3g connectivity The increase in usage of smartphones, and the spread of 3g networks, make mobile phones a further channel through which consumers can access the internet, and their banking facilities. Banks provide their own mobile banking apps

camera high-resolution camera ena-bling the initiation of transac-tions through imaging instead of PoS transaction capture (e.g. of a credit card)

embedded nFc near-field communication technology built-in to a phone allows the transfer of pay-ment data between a phone and a reader, or between two phones

external nFcPhones which aren’t made with nFC technology built-in can still take advantage of the feature by inserting a device into the microSd port

external hardwareUsing its input ports, a smart-phone can be converted into a payment card processor at a fraction of the cost of pur-chasing a conventional card terminal


In particular, however, the development of radio and network technologies has greatly improved mobile bandwidth and the available download speeds. The first m-banking services in Europe were deployed over the slower 2g network (i.e. 9.6 Kbit/s)2, whereas the latest 3g networks are competitive with fixed-line networks with speeds of up to 52Mb/s (e.g. on hSPA+)3.

The launch of the iPhone in 2007 began to show the potential of new technolo-gies using these networks and launched an entirely new mobile segment, the smartphone. This new type of device has proved extremely popular, with over 900 million users estimated worldwide at the end of 20114, resulting in a highly diversified market with the entrance of other handset manufacturers. These new devices’ capabilities have enabled new features such as ‘apps’, which allow smartphones to become gam-ing devices, organisers, media players, cameras and location based-services.

Perhaps the most beneficial capabil-ity of smartphones, however, is the improved mobile web browsing experi-ence available which has kept consum-ers permanently “connected”, thus intensifying their online behaviour.

Smartphone users now expect and re-ceive instant access to information and services, which has further enhanced the mobile’s role as a key customer interface and driven an increasing number of activities to be available. Financial service providers, along with a wide variety of other industries, have taken advantage of these develop-ments to broaden the range of services provided, driving greater growth in the mobile money market.

They have been supported in this ex-pansion of channels by service platform providers such as Broadridge5, who provide support for emerging channels such as phones and tablets an integral part of their customer communications package.

It is important to note that the uptake of smartphones has not been homo-geneous across different regions, with developed countries leading the way. This has been driven both by the phones’ affordability, or lack thereof, and the telecommunications infrastruc-ture requirements of a smartphone. Smartphone penetration therefore varies from 39% in north America and 34% in Western Europe to below 10% in Latin America and Asia, and drops to 3% in Africa. This pattern should be kept in mind for the later discussion with respect to the provision of mobile financial services in developing coun-tries.

It is forecast that the smartphone’s gradual reduction in price, together with economic and infrastructure develop-ment, will deliver higher penetration across all regions in the future (e.g. estimated penetration in Latin America is 40% by 2016)6. This should allow a much larger user base to access more advanced, content-rich, round-the-clock services and offer ever increasing op-portunities to mobile payment providers.

2 Press clippings; Value Partners Analysis.3 deutsche Telekom.4 IdC 2011.5 Broadridge 2012. 6 Informa; Value Partners Analysis.

16—17

Virtuous driver cycle

• Strong mobile penetration of over 100% in mature markets, with less developed markets rapidly catching up

• Short product cycles, with each new launch introducing new features and functionalities

• Smartphone, proving a leap forward in mobile phones’ capabilities

• network speed dramatically improved from 9.6 kbit/s (2g) to 7.2Mb/s (3g)

• Solution evolution from simple account checking using WAP, to smartphone app allowing trading, ATM search, etc.

• Key technology advancements enabling mobile financials solutions development and deployment

mobile servicepenetration

device and infrastructure

evolution

mobile financial services’

development

customer trust and awareness

Source: Value Partners analysis.


however, smartphones are not the only form of mobile technology presenting opportunities in the mobile payment space. Since the launch of the iPad, tablet based technologies have de-veloped rapidly by combining typical smartphone features (e.g. portability and touch screens) with those of laptops and PCs (e.g. larger screen and more advanced multimedia capabilities). The format has proved popular with con-sumers and over 60 million devices were sold in 2011 by a variety of manufactur-ers7, with bullish forecasts predicting sales to reach over 300 million by 20158. This is likely to close the gap between traditional PC and tablet sales and will result in a more diversified use of tech-nology by users in the future. Smart-phones are still predicted to continue to grow strongly though, with one study forecasting sales of 982 million in 20159.

Tablets represent a great opportunity for mobile banking, particularly with re-spect to account management. Service providers are able to either extend their existing smartphone app into a wider screen format or develop new bespoke applications (e.g. tablet banking apps), which take advantage of an increased screen size and the ability to render richer media content. These opportuni-ties have been leveraged in particular within the private and corporate bank-ing industries and as an enabler in some branch redesign initiatives.

2.3.3 Mobile financial service developmentThe first two drivers of mobile financial services – mobile service penetration and device and infrastructure evolu-tion – are fundamental, but would not work in isolation. They are part of a virtuous circle which includes, as the third component, the availability and quality of mobile financial services themselves. Users’ experience and con-sumers’ adoption play a significant role in driving or hindering uptake, as was particularly evident in the early stages of development in mobile banking serv-ices. Consumer trust and awareness, as well as the value of the available solu-tions, are interrelated factors integral to the sophistication of mobile financial services.

These three drivers have been covered individually in the previous section of the report but to understand the recent rapid development of mobile finan-cial services, especially in developed economies, these have to be taken into account within a mutually reinforcing relationship. At the core of this reinforc-ing cycle is the increased functionality of handsets and enhanced customer fa-miliarity with, and propensity to adopt, mobile financial services.

7 IdC 2011.8 gartner.9 IdC2011.

2010 2011 2012 2013 2014 2015

100

200

300

400

500

600

0

Forecast tablet sales (million devices)

Pcs

Tablets

Source: Gartner 2011.

18—19

2.4 The developed and developing world dichotomy

The scarcity of appealing financial products to populations with smaller incomes has led to a large proportion of the population of developing countries to be unbanked or underbanked10. As previously illustrated, the developing world is also lagging behind developed economies in the uptake of newer mo-bile devices (e.g. smartphones and tab-lets), with the consequence that mobile financial services in these geographies are in most cases delivered using older technologies such as SMS and WAP.

This is due to very different socio-eco-nomic circumstances from the devel-oped world, with the vast majority of the population living on small incomes and the cost of the latest generation of mobile devices often unaffordable. In the developing world, for example, although mobile platforms have been suggested as an alternative to PoS terminals, many merchants have no demand for such services given that the clients they serve do not have access to cards or online payments.

Connectivity issues and the lack of a reliable electricity supply are also challenges to be taken into account within the context of a developing world where populations are often dispersed in rural areas.

These issues, however, have not been a barrier to the development of mobile payment value propositions. The lack of penetration and limited reach of banking infrastructure has driven the uptake of mobile financial services and payment alternatives, often offered not by banks but instead by telecoms operators.

10 “half the World is Unbanked” Financial Access Initiative october 2009.

the potential cost savings of a transition to a ‘cash lite’ economy are significant, with a recent world bank report finding that governments in developing economies could cut up to 75% of transaction costs through electronic payment programmes.


11 World Bank, April 2012, Measuring Financial Inclusion: The global Findex database.12 Better Than Cash Alliance, 2012, ‘The Journey Towards Cash Lite’.

The penetration of “candy-bar” mobile handsets together with a network of telecom shops and small retailers (who are recruited as a point of deposit and disbursement) has enabled the develop-ment of mobile payment success stories such as M-Pesa. In developing countries mobile financial services have helped to fill the space left by insufficient banking infrastructure for low income popula-tions.

In doing so, they have supported bottom-up economic growth by offer-ing the ability to pay electronically at a distance11. The potential cost savings of a transition to a ‘cash lite’ economy12 are significant, with a recent World Bank Report finding that governments in de-veloping economies could cut up to 75% of transaction costs through electronic payment programmes.

The issues discussed above have led to two different development paths for developed and developing economies with regards to retail mobile financial services, with the models emerging in the developed world not replicable in the developing world and vice-versa. It should be noted that this difference is not applicable to mobile financial services within the context of corporate and private banking, since large cor-porations and wealthy individuals have similar access to banking infrastructure and services regardless of their nation-ality or operations.

Source: World Bank 2011, Ericsson 2012, Value Partners Analysis.

The banked vs unbanked

1.1 bnmore developed

5.1 bnless developed

rea

ch

of

ba

nk

s (4

4%

)

rea

ch

of

mo

bil

e (

85

%)

0.7 bnleast developed

20—21

Consumer survey, 2011: “Which of the following do you trust for handling mobile payments?”

Sources: 2011 Consumer Trends Survey, Fiserv, Inc., August 2011.

40%

35%33%

23%

15%

9%

8%7%

3%

8%

My Bank or Credit Union


RETAIL BAnKIng 3

13 Source: TnS.

3.1 Segment overview

Mobile financial services have been developing for nearly 20 years, but re-cently the speed of development seems to have increased significantly. Unlike private and corporate banking, where the application of mobile is the same regardless of geographical location and depends instead on the sophistication of the services and channels of the sup-plying bank, within the context of retail banking it is important to distinguish between developed and developing economies. The former already have a high level of financial service penetra-tion and advanced mobile devices, whilst devices in the latter are usually more basic and may act as a low-cost substitute for financial services with limited reach.

The mobile retail banking landscape may also be divided according to the type of service offered, whether it al-lows the management of one’s entire portfolio of financial services, as in the case of m-banking, or whether it simply enables one-off payments, as in the case of m-payments. The latter of these is more prevalent in the developing world.

3.2 M-banking propositions

M-banking was one of the first finan-cial services offered on mobiles (e.g. Barclays’ and Cellnet’s collaboration in 1997) but it did not prove revolutionary for either customers or banks. however, over the last few years the use of m-banking has increased dramati-cally.

The number of consumers using m-banking has increased significantly in recent years and in some countries has more than doubled between 2010 and 2011: from 10% to 20% in the UK; 8% to 20% in Sweden; and 11% to 22% in the US13.

The rise of the smartphone and the increased availability of m-banking solu-tions have been key drivers sustaining this growth. What is actually avail-able to customers, however, will vary by country and by bank. M-banking services have generally fallen into two categories: information services and transaction services.

Information services were the first to be implemented, since they rely on easily accessible data (e.g. ATM network data using ISo8583) and pose little security risk. The services’ breadth continued to expand and now typically includes:

22—2222—23

iPhone app iPad app

Banking

Insurance

Investments

Information/Advice

ATM Locator

deposit@Mobile

deposit@home

get account balances

Loan Calculator

Pay bills

Transfer funds

View account history

Accident Checklist

get an auto insurance Id card

Rental Car Locator

Roadside Assistance

Pay your premium

Review coverage and discounts

View past statements

View policy details

View real-time stock quotes

View market activity

Place a trade

Relevant articles

Informative videos

The USAA iPhone and iPad offering differentiation


• Accountstatements• Accountactivityalerts(including

suspected fraud)• T&C’s(creditcard,loanorinsurance

policy statements)• Statusofchequeclearing• ATMandbranchlocation

Transaction services followed later because of their more complex nature, and a typical offering can include:

• Mobileprepaidaccountrecharging• Micropaymenthandling(forremote

and proximity payments)• NFCcredit,debitandprepaidcard

payment processing• Paymentinitiation(e.g.credittrans-

fer)

A number of different technologies can be used for delivering these services, ranging from text based technologies (i.e. SMS and USSd - Unstructured Supplementary Service data) com-patible with all gSM phones, to Java applications for low end phones and browser-based services and apps for smartphones.

Services are mostly launched through collaborations between partners but there are exceptions to this model that forgo the mobile operator or the finan-cial institution, such as:

• MobilkomAustriaacquiringabank-ing licence

• RabobankandBankinterlaunchingMVno services

The potential convergence between the mobile telecom and financial services industries is not a new theme. Recently, however, technological developments such as the enablers mentioned in sec-tion 2.3 of this report, cloud computing, the growth of a number of new internet financial service entrants, regulation (e.g. the ‘Payment Services directive in Europe’) and the uptake of mobile as a financial service channel, have com-bined to trigger actual convergence.

Tablets, on the other hand, are a much more recent development within the telecoms industry. In addition to us-ing the tablet as an additional access device for internet banking, m-banking has started to leverage the tablet by de-veloping device-specific apps. however, there has so far been little differentia-tion between tablet and smartphone in terms of m-payment and m-transfer solutions.

Informationservices

Payments & Transfers

the potential convergence between the mobile telecom and financial services industries is not a new theme.

La Caixa’s first foray into m-banking occurred in 2001 with the launch of their mobile banking portal. Since then, La Caixa has continued to develop the mobile channel, which received a boost following the introduction of the smartphone. At the end of 2009, it launched its own app store to serve all available mobile platforms, and to date offers over 50 apps covering an extremely broad range of banking and value added services (e.g. banking, investments, m-payments, ticketing). The bank’s ambition is to cater to the differing needs of their customer base (e.g. students, pensioners, investors, migrant workers).

Moreover, increasing the number of apps not only extends the offering without cluttering the key m-banking services, but also allows customers to pick and choose according to their needs, therefore customising their own m-banking app portfolio and experience. The apps making up the portfolio can be aggregated under a single umbrella through the “la Caixa” app or downloaded individually.

Example of available apps:

24—25

Case Study: CAIXA

banking apps

cuentas Account statement, transactions and transfers

tarjetas Credit card state-ments and transac-tions

ingreso de cheques Remote cheque depositing

caixagirosCross-border remittance

alerta particularesSMS transaction alerts

investment & pension

mis valoresView stock’s portfolio valuation

bolsa abiertaStock market informa-tion and acquisition

Fondo de inversion View investment funds portfolio per-formance

planes de pensiones View pension fund and make contribu-tions

payments

recarga targetaPrepaid credit card top up

recarga de moviles Mobile phone credit top up

transfiMobile to mobile m-transfer

pago de matriculas Payment of university tuition fees

pago de recibos Bill payment

other services

localizador de oficinas ATM & Branch locator

Servicaixa Mobile ticketing

icaixaForum Info on Barcellona and Madrid cultural events

blog de caixa Caixa’s corporate blog

estudio y analisis economico View Caixa’s economic research

la caixa Caixa app bundling


For example, at the start of 2011 the United Services Automobile Association (USAA), released a native m-banking tablet app offering a different set of functionalities from the smartphone apps. Moreover it was designed to take advantage of the tablet’s extra features, in particular its video capabilities, and to match different tablet-specific usage patterns. Whilst the iPhone app exclu-sively offered more mobile-orientated services such as an ATM locater and Roadside Assistance application, the iPad provided more detailed content such as statements and the viewing of complex insurance documents. USAA also introduced an information section in its iPad application that features arti-cles, stories, and interviews with USAA financial planners, covering a wide variety of topics including investing, insurance and buying a house.

The most innovative banks have moved beyond simply transposing online bank-ing onto mobile and have developed a distinct mobile channel. For example, BBVA in Spain recently launched a series of native apps (i.e. developed specifically for the ioS, Android and BlackBerry environments), which allow mobile customers to access a broad range of banking functionalities. The established information and transac-tion services have been complemented with value added services (e.g. an ATM finder) which aim to strengthen the bank-customer relationship. These include “Tu cuentas”, its mobile personal finance tool, aiming to assist custom-ers in better managing their personal finances.

Based on the consumer’s profile and use of m-banking, “Tu cuentas” offers a selection of personalised suggestions; for example, practical financial tips, a shortlist of the most liked products and information on financial products and services potentially of interest.

Another notable example is La Caixa, Spain’s first retail bank, which has become one of the leading m-banking providers worldwide through their in-novative adoption of m-banking14:

• 2millionm-bankingcustomers,equivalent to 20% of their customer base

• Over5%ofcustomersusingmobileas their primary banking channel

• Over40millionm-bankingtransac-tions conducted in 2010

14 Source: La Caixa.

26—27

3.3 M-payments propositions – Developed World

Mobile handsets are versatile devices offering a number of features that are being leveraged across a number of variations of business model (e.g. bank-centric, mobile-centric, 3rd party-centric, bank-led partnership, etc), leading to vast range of different value propositions.

Some of these are based on different ways to capture, authenticate and settle a transaction. Such mobile payments are expected to become the most im-portant retail channel by 2020 – in the form of mobile PoSs in-store, contact-less capabilities and location-based technologies – with 44% of UK retailers expected to offer contactless payment technologies by next year alone15.

15 MasterCard 2012.

Example of business model variations

Financial institution centric

Financial institution acquires a mobile operator licence or becomes a MVno in order to offer the service autonomou-sly from an Mno

3rd party provider centric

• Business is led by third party payments service provider (PSP)

• decouples operators and banks to allow for cross-operator and cross-bank service propositions

Mobile network operator led

• Mobile network operator acquires a banking licence, and stores all deposits itself

• Mno owns all the infrastructure necessary for operation, such as deposit-taking agencies and nFC terminals

Established players partne-ring (or acquiring) 3rd party providers to integrate the offering/ technology into their payment processing infrastructure

Established players partne-ring (or acquiring) 3rd party providers to integrate the offering/ technology into their payment processing infrastructure

A traditional bank uses the mobile phone as an extension of its conventio-nal branch based banking services

An Mno partners with a bank, and benefits from the bank’s credibility and expertise

Third party providers partnering with mobile operators or leveraging their infrastructure


The great variation of possible busi-ness models has led to a diversification of value propositions with consequent challenges in terms of critical mass and standardisation. This variation has also led to significant market fragmentation and a lack of interoperability.

To address these challenges, which could hinder the development of the m-payment space, industry associations and stakeholders are collaborating to set common standards. The European Payment Council (EPC) is working with key groups to establish the necessary standards and business rules to lever-age the full potential of the mobile channel for the initiation and receipt of SEPA payments in an interoperable environment.

To progress its work in this area, the EPC has established three formal rela-tionships with globalPlatform, gSMA, and Money Forum. In February 2012 it also published its second white paper on mobile payments for public consulta-tion16 and held a stakeholder review for mobile payment standards.

Furthermore, the European Commission has published a green Paper to launch a consultative process with stakehold-ers to improve integration in the card, internet and mobile payments market in Europe17.

The groupe Speciale Mobile Association (gSMA), meanwhile, has published a number of papers on this topic and has an internal group investigating mobile payment standards18.

In February 2012 at the gSMA World Mobile Conference, Visa announced two new partnerships with Intel and Voda-fone. The Intel partnership is a new mul-ti-device, multi-year partnership aimed at developing mobile commerce solu-tions for Intel Atom-based smartphones and tablets. Additionally, Intel’s Smart-phone Reference device solution will be certified for use with Visa payWave and integrated with nFC technology. This will enable turn-key implementation for original Equipment Manufacturers delivering nFC-enabled smartphones. The second partnership aims to develop a Vodafone branded proximity payment solution (based on nFC technology) enabling its customers to pay for goods and services using their mobile phones. The proposition would be based on a Visa prepaid account and offered to consumers in partnership with Visa Is-suers. The main challenge for any player aiming to take mobile financial services to the wider consumer audience is the significant number of different devices across different operating systems.

16 EPC, February 7th 2012, White Paper: Mobile Payments (2nd edition) (www.european-paymentscouncil.eu). 17 European Commission, January 2012, ‘Towards an integrated European market for card, internet and mobile payments (green Paper)’.18 gSMA, April 11th 2012, ‘gSMA Europe Response to the European Commission Public Consultation on the “green Paper – Towards an integrated European market for card, internet and mobile payments”.

28—29

MasterCard, meanwhile, was one of the first to sign up with Isis, the mobile pay-ment consortium backed and supported by three of the four biggest US mobile network operators. It has also partnered with google Wallet, an nFC android app that stores a virtual version of a physi-cal MasterCard card and can be used at any of the hundreds of thousands of PayPass (an nFC acceptance terminal rolled out by MasterCard) acceptance locations. The functionality of these terminals looks set to increase in the future with the release of PayPass SdK, a tool kit for developers to integrate Android and Blackberry applications with MasterCard-approved contactless terminals19.

It is not only Android applications that are able to make nFC transactions. The new nokia Lumia 610 nFC smartphone has an integrated nFC solution included, supported by InSIdE Secure, which runs on the Microsoft Windows Phone 7 platform.

This is one of the first nFC enabled de-vices that is compatible with the Micro-soft Windows Phone operating system, and shows how despite fragmentation in the mobile software market the de-mand for payment solutions, especially nFC, is allowing such integration issues to be overcome.

The development of applications or mobile web pages requires a sizeable level of ongoing investment. This is particularly the case in the retail market, more so than the private or corporate banking space, where the nature of the service and the size of the poten-tial audience offer the opportunity to leverage a one platform only approach, especially given the lower margins per customer.

In the current landscape there are proprietary applications that have been developed and are used on an exclusive basis by single players (e.g. M-Pesa) as well as multi-device platforms de-veloped by technology providers for financial services operators or telecom companies.

19 MasterCard 2012.

Possible approaches to manage the transaction

AuThORISe / AuTheNTICATe

offline PIn

online PIn

SMS

Token

Biometrics

Call

...

CAPTuRe

nFC

SMS

Web / WAP application

ATM

PoS

Call

...

SeTTle

Mobile Prepaid

Mobile Wallet

Post paid

Phone bill

Card linked

Current account linked

...


Within this context, the retail mobile banking and payment landscape in developed economies has a pace of development that is more in line with online start-ups than a speed typical of the financial services industry.

There is a continuous flow of announce-ments and product launches fuelled by the expectation and hope that mobile will provide the means of replacing cash or incumbent payment methods. For example, in 2012 alone, a series of new initiatives has been announced:

• “MonitiseandVisalaunchground-breaking new mobile payments platform in India”

• “VisaandSamsungRevealMobilePayments Application for the London 2012 olympic and Paralympic games”

• “BancaIntesaSanpaolotoconductmobile payment trials”

• “Sybase365andTelefonicaExpandMobile Financial Services With In-novative Mobile Wallet”

• “WorldPayoffersBOKUasamobilepayment method to its global mer-chant network”

• “Accumulatelaunchmobilemerchantapp”

• “Grouponannounceslaunchofgroupon Payments™, a mobile-based payments service backed by a guar-antee to be the lowest cost option for the company’s merchants to accept credit cards”

• “OracleaddsmobilePOStoretailerEFTPoS line”

• “Fiserv Launches SpotPay Mobile Payment Solution”

This highly competitive landscape, with little indication of the outcome, has led established payment proces-sors, such as Visa and MasterCard, to hedge their bets and to invest in a broad range of initiatives to ensure their long term presence in the segment. no established payment provider wishes to “do another PayPal”, whereby the traditional payment solution providers left a gap in the e-commerce market, allowing PayPal to find an innovative niche from which it has developed into a leading online payment provider, with a net total payment volume of $119 bil-lion in 2011.

30—31

• Fundamo – Visa acquired Fundamo, a specialist mobile financial services provider to network operators and financial institutions in developing economies, for $110 million

• PlaySpan – Visa acquired PlaySpan, a virtual goods monetization platform, for $190 million

• Monetise – Visa Europe invested £24.7 million in Monetise to acquire a 8.8% stake in 2011, following Visa’s lead who had acquired a 14.4% stake in 2009

• mFoundry – MasterCard co-invested with Intel Capital in mFoundry, joining existing investors Motorola and FIS

• Joint venture with Telefonica (50-50) in Latin America to develop mobile financial solutions in 12 Latin American countries, using Smart hub Inc. as its mobile payment processing solution

• MasterCard has partnered with Boku, an online payment processor, to allow it to make use of PayPass technology into which it has invested heavily

• Payfone – Amex, with Verizon Investment and Rogers Comms, participated in latest fund raising of $19 million

• Sometrics – Amex acquired virtual currency company Sometrics, allegedly for $30 million

• In late 2011 Amex announced a multi-year commerce initiative, with plans to invest $100 million in mobile payments suppliers

• Zetawire – In 2010 google acquired a small stealth startup focussing on mobile payments, which had been granted a patent for “mobile banking, advertising, identity management, credit card and mobile coupon transaction processing”

• TxVia – Acquisition of payment technology company that supports the manage-ment of more than 100 accounts to boost its google Wallet venture

• card.io – PayPal solidified pre-existing partnership in July 2012 through acquisition of card.io, a company that allows develops to capture payment card information using a smatphone’s built-in camera

• M-Com – In 2011 Fiserv acquired M-Com, with which it had been in partnership since 2008. The two companies jointly developed Mobile MoneyTM a customer care and transaction reporting service

• CashEdge – Fiserv paid $465 million for company specialising in P2P and small business payments

• Agreement with Intelligent Environments, a firm specialising in mobile and online banking software, which allows TSyS’ European customers to view their credit card transactions through their smartphones

• Partnership with Korea’s SK C&C, who offer contactless mobile services, now allows a set of turnkey mobile services to be used by US banks

• Agreement with CPnI Inc., an IMB Business Parter, states that Prosa will provide processing backbone for CPnI’s Phone Authorized TransferTM mobile payment solution

Recent investments made by established payment processors and other potential market players (selected examples, non-exhaustive)


3.4 M-payments propositions – Developing World

In the developing world, the deployment of mobile financial services is generally mobile operator-led (see for example, the recent launch of a mobile wallet in nigeria by Etisalat), and has mainly focused on m-transfer solutions, since demand for these is much greater than for bank account management capabili-ties. This demand arises mainly from internal economic migrants who have limited means to transfer funds because of a low penetration of banking services and have previously been forced to rely on unreliable informal channels.

Mobile financial services, with their near ubiquitous reach (i.e. mobile phone pen-etration coupled with an extensive top-up agent network), and reduced transfer costs, have enabled mobile operators to launch very successful m-transfer solu-tions such as M-Pesa.M-Pesa has seen extraordinary growth since its launch in March 2007: as of September 2011 it has been adopted by nearly 15 million customers (correspond-ing to 67% of Kenya’s adult population) with around 27,000 agents countrywide and processing transactions equivalent in value to 20% of Kenya’s gdP20. Moreo-ver, in 2011, M-Pesa generated $141 mil-lion in annual revenue (which accounts for 12.4% of Safaricom’s total revenue).

The agents’ network is a fundamental aspect of the developing world m-payments business model; an extensive countrywide network is required to enable the transfer of physical cash to and from electronic accounts. Its deploy-ment requires considerable investments, favouring incumbent mobile operators who not only have direct access to clients, but also have their “credit top up” agent network. however, this initial set-up hurdle can be mitigated by part-nering with an existing organisation (e.g. Western Union).

Although conditions may be ripe in developing countries, the success of m-transfer initiatives has been heavily influenced by the domestic regulator’s approach. Existing legislation is either not applicable or inappropriate, since it was designed for brick-and-mortar operations. Countries with little or no banking regulation on m-transfers have seen the initiatives flourish (e.g. Kenya and the Philippines), while in countries like India, m-transfers have been hin-dered by excessive regulations.

M-payments, with their improved ac-cess and low transfer costs in develop-ing countries, have the opportunity to create a new market of more frequent and lower denomination remittances, thereby growing the overall transfer market.

They also have implications for how emergency relief is distributed, which is of particular importance in the develop-ing world. MasterCard and the World Food Program (WFP) have recently partnered, for example, with plans to expand the WFP’s digital project so that in the near future 30% of food vouchers will be distributed to mobile phones or banks, regardless of access to formal fi-nancial services. This initiative has been launched in conjunction with an online donation mechanism located at check-outs, demonstrating how electronic payments have the potential to posi-tively influence the entire emergency relief value chain.

20 Source: Safaricom press release - September 2011.

32—33

Safaricom (a subsidiary of Vodafone in Kenya) launched a MMT service in 2007 called M-Pesa, an electronic payment and value storing system. The service allows M-Pesa customers to manage their accounts by exchanging cash for electronic value (and vice versa) at a network of retail stores (i.e. agents). Available funds can be transferred to other mobile phone users, even if they are not a registered M-Pesa customer, or used to pay bills and to purchase mobile airtime credit.

These stores are paid a fee by Safaricom each time they exchange these two forms of value on behalf of customers. once customers have money in their accounts, they can use their phones to transfer funds to other M-Pesa users and even to non-registered users, pay bills, and purchase mobile airtime credit. All transactions are authorised and recorded in real time using secure SMS and are capped at $500. only Safaricom subscribers can use the service to transfer money, but anyone who receives the SMS, regardless of whether they are a Safaricom subscriber or not, can cash in the SMS at M-Pesa agent outlets. Western Union has partnered with Safa-ricom to enable users in 45 countries to use Western Union outlets to send money directly to the mobile wallets of Safaricom’s M-Pesa subscribers in Kenya.

M-Pesa’s market uptake can be interpreted as the interplay of a number of fac-tors. First of all, Safaricom enjoys a market dominance of around 80%, which has permitted a rapid and widespread roll-out of M-Pesa enabling the payment system to quickly reach critical mass in the market. Secondly, the M-Pesa initiative was the recipient of a sizeable grant from the UK aid agency to trial mobile money services as a way to increase financial inclusion.

Finally, M-Pesa’s service design was very well executed to deliver rapid adoption and early capturing of the requisite network effects. These factors, combined with the typical driving forces behind the growth of all mobile financial services, helped M-Pesa reach a critical mass of customers rapidly, thereby avoiding the barriers to growth that can afflict new payment systems.

Case Study: M-Pesa


3.5 Implications

Mobile retail financial services is an industry characterised by a high and growing degree of fragmentation, both in terms of solutions and providers. Breaching the critical mass threshold is, therefore, the first obstacle to overcome for a potential major market player. This issue is compounded by the need for seamless interoperability in the elec-tronic payment space, especially where physical infrastructure is required (such as between nFC merchant terminals and consumer devices). Ensuring that platforms and solutions are interoper-able is the obvious way in which to address this challenge, however this is something that cannot be done until a degree of standardisation is established and a number of dominant business models emerge.

Competing m-payment solutions must reach a critical adoption mass to become mainstream payment meth-ods, either within geographical areas or a specific transaction environment; however as start-ups they remain in the vicious cycle of insufficient merchants and customers. Without critical mass it is difficult not only to gain market traction but also to have a sustainable business case.

There are many varieties of mobile handset and their operating systems change regularly (although in west-ern markets ioS and Android have a duopoly, with a 72% share of the US market between them). This makes it difficult to develop and maintain value propositions that can be made available to consumers regardless of their choice of handset type or age of device or mobile network.

Smaller players in particular should con-sider the opportunities offered through partnerships with large scale platform providers, who could make the invest-ments required to make their value propositions available on a multitude of handsets models and mobile platforms.

Within a highly fragmented market in which players of different segments of the value chain all wish to participate, it is imperative to select the right partners and collaboration mechanisms as well as to assume the correct positioning. In most segments, traditional financial operators already offer non-mobile services. Players pursuing mobile strategies will have to surpass incum-bents’ offering whilst appropriately managing end-user perceptions of the industry. This is often more difficult for long-standing players in the industry than new entrants. In particular, this requires smooth delivery and execution, a properly designed user interface and robustness and reliability in a mar-ket that, more so than corporate and private banking, is partially dictated by brand power and carries the commer-cial risks and opportunities inherent in social media and connected consumers.

Furthermore, while mobile financial services may already fall within the scope of existing retail regulations, these have been devised for a more traditional “brick and mortar” industry. They are therefore potentially inad-equate within the context of recent technology developments, internet growth and new telecom entrants.

34—35

philippineS

• M-transfer services were launched in the Philippines as early as 2000 by the two leading operators, globe Telecom (g-Cash) and Smart Communications (Smart Money)

• Smart Money, which was launched in 2000 in conjunction with Banco de oro (Bdo), started life as “over the air” prepaid charges and eventually evolved into Smart Money21. The service allowed unbanked customers to have a pseudo bank account held on their mobile phones, allowing P2P transfers as well as cash withdrawals and cashless purchases at accepting shops cambodia

• WIng is a Cambodian mobile payment company launched by Australia and new Zealand Banking group Limited (AnZ), which since 2008 has attracted over 350,000 customers to its P2P service; almost all Mobile operators and Microfinance Institutions are able to connect using any mobile handset type

• ACLEdA bank launched a similar service a year later, in 2009, although the ACLEdA Unity service allows only its own customers to carry out financial transactions; the number of active accounts is around 50,000

• Recently ACLEdA has launched a solution for the unbanked – ACLEdA Unity Wallet – that does not require a bank account, only a mobile phone aFrica

• MTn group launched similar m-transfer services throughout Africa in 2009. As of 2011, ‘MTn Money’ had 5.7 million registered users throughout 12 different African countries and had seen spectacular growth in countries with extremely low bank account penetration; MTn Uganda recently reported over $200 million in transactions per month

• Visa has moved to further strengthen its position in the mobile remittance market in emerging African economies through their acquisition of Fundamo, a provider of mobile money and banking solutions to developing markets

• other operators have also developed m-transfer services targeting developing countries. The French operator orange launched ‘orange Money’ across eight different African countries (Cote d’Ivoire, Senegal, Madagascar, Mali, niger, Kenya, Botswana and Cameroon) in 2008

• Wizzit, a division of the South African Bank of Athens, is a mobile payment and banking service launched in 2004 and as of 2011 served over 400,000 people india

• A number of different players in India, including handset manufacturers, banks and national institutions have moved to enter the MMT space. Policy makers from India visited Kenya to observe the uptake of Safaricom’s M-Pesa service in 2010, prompting a change in policies and a subsequent flurry of entrants into the market

• handset manufacturer nokia invested in the American mobile transfer service obopay in 2009 and along with Union Bank of India launched a P2P MMT service called Union Bank Money in March of 2011

• The Indian department of Posts (doP) and the state-owned Indian telecommunications company BSnL, launched a competing MMT service in 2011

Examples of M-Transfer offerings in the Developing World


PRIVATE BAnKIng4

21 World Bank – december 2006 –‘M-remittances, Case study of the Philippines’. 22 Money Management Executive, october 2011 (www.mmexecutive.com).23 PR Web, February 2012 (www.prweb.com).


Amongst all the sub-sectors of the financial services industry, private banking has remained one of the most hesitant in adopting mobile technolo-gies. Concerns about security and the general impression that private banking clients did not want a mobile-centric relationship with their bank are often cited as reasons for the industry’s slow adoption of mobile banking22. This is despite the fact that the affluent, the primary clients of the private banking sector, have led the adoption of next generation mobile and tablet devices23.

Smartphones and tablets represent two new client–bank interaction channels, as well as an opportunity for private banks to deploy services that offer high-qual-ity user experiences to a segment that is typically highly educated and techno-logically confident. Mobile is a particularly suitable chan-nel for the more wealthy segments of private banking since they often have access to the most up-to-date ICT hard-ware – but also provides a potentially useful channel to deploy and enrich self-service value propositions to the mass affluent. This is a segment that requires little servicing in order to be profitable to providers as the mobile device may, for example, provide the information and execution services that would otherwise be supplied by a dedicated financial advisor.

4.2 Propositions

Private banks are now beginning to provide their customers with smart-phone applications. In fact, the majority of private banks provide mobile access to internet banking via smartphone browsers – i.e. the smartphone is merely an extension of the internet banking platform – but most of these are not designed to take advantage of mobile-specific features, with less than a third having features which are not available on the bank’s website.

The current features of private banking smartphone applications include:

• Accountsnapshots• Accesstomarketinformation• Tradingcapabilities

Recently, Merrill Lynch Wealth Manage-ment introduced a mobile application available on Apple and BlackBerry devices for their clients. The app allows clients to: 1) view their portfolio hold-ings and account activity; 2) transfer money between linked Merrill Lynch brokerage and Bank of America bank accounts; and 3) trade stocks, mutual funds, exchange-traded funds and op-tions in approved accounts. Clients can also track market news and headlines, and gain access to the bank’s latest research reports.

36—37

Citi Private Bank offers its clients both an iPhone and iPad app for information and transactional services. The iPad version is a more interactive extension of the iPhone app. The apps allow users to check their account balances, view account groups and explore how assets and liabilities change over time. The value-added services available through the app include monthly global economic commentary from Citi Private Bank’s Chief Investment officer, access to global equity and fixed income research and video interviews and investment outlooks.

Since 2010, Finantix has offered a suite of iPad Wealth apps allowing banks to improve their face to face sales and customer relationship management approach.

Finantix has a suite of apps which support financial advisers with face-to-face client interactions, both in the retail banking and wealth management space. The apps allow financial advisers and salespeople to improve front-end processes and the customer experience by offering support to the following services:

•Wealth Management: investment advice and integrated financial planning for the high net worth and mass affluent segments

• Sales: integrated client view, client fact find and regulated Know your Customer, simplified financial planning and advice-driven sales processes for the emerging mass affluent and retail segments

• Branch Front-End: teller and banking transactions, client enrolment, product origina-tion, customer service and sales support integrated in a branch automation desktop

• Self-Service Front-End: multi-channel financial portal that includes online product catalogue, internet banking, smartphone banking and financial advice based on graphical calculators and interactive dialogues

• Lending: sales, origination and decision support for mortgages, and consumer and business loans

• CRM: integrated single client view, cross channel sales and marketing initiative management, customer management and client interactions, cross-selling, opportunity pipeline for sales activities and dialogues

Case Studies: Citi Private Bank and Finantix


The mobile nature of the target clients and, by extension, of their private bank-ers makes this sector an ideal market for tablet technology. There are currently two main approaches to deploying private banking tablet apps:

• Customerdeployedapp (i.e. down-loaded onto the customer’s device): M-banking solutions can leverage the tablet’s “exclusive” features not available on smartphones to deliver different functionalities. For example easy-to-read portfolio snapshots and provision of financial information in a rich media format (e.g. market expert video interviews, portfolio perform-ance tracking using rich and high resolution graphics), as deployed by Citi Private Bank

• Privatebanker’sapp (i.e. downloaded onto banker’s device and used during client meetings): The tablet can be exploited to enhance interaction and communication, and thereby also provide an opportunity to propose new products. Tablet functionalities may include real time access and sharing of information, interactive banker-client simulation or creation of new portfolios and “easy” illustra-tion of new products using rich media formats

The most widespread tablet device is Apple’s iPad due to its user interface, its easy integration into existing IT infra-structure, and its inbuilt security levels (applications on the iPad can be fully encrypted if sensitive data is a con-cern). Firms such as Finatix are advising financial institutions on how to make the most of the growing mobile and tablet channel, as such services are rapidly becoming mainstream across the bank-ing sector.

J.P. Morgan recently launched an iPad app for its high-net-worth and ultrahigh-net-worth U.S. clients (those whose assets are between $5 and $25 million). According to the bank, the adoption rate has been faster than that of their online platform when it was first rolled out. The J.P. Morgan app lets clients view their account balances, transactions and investment positions. They can transfer funds, send wire transfers and pay bills using the applica-tion, but they have to go through their client managers to give orders on their investment positions.

It is not only Apple devices, however, that have drawn the attention of wealth management specialists. E*Trade Securities, for example, have recently extended E*Mobile to the Windows Phone software platform, currently available primarily on nokia devices. This allows E*Trade Securities’ clients to trade stocks via mobile, with the usual news alerts and chart tools included as standard. Such efforts at interoper-ability occur frequently in the mobile financial service space, yet in such a rapidly evolving market it has thus far proved impossible for all players to offer all their offerings through all possible platforms.

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4.3 Implications

The choice between different private banking firms remains much more de-pendent on their financial performance than their use of the latest technologies. Compared to retail banking clients, private banking clients are far ‘stickier’, since they incur higher switching costs and face other unique barriers. In the context of mobile services, the lack of a state-of-the-art mobile solu-tion will not be a decisive factor for a client to switch banks, reducing private banks’ need to urgently roll out innova-tive mobile services. Private banks do, however, need to remain in line with wider financial industry mobile trends. Moreover, the mobile channel offers private banks the opportunity to reduce the client servicing costs by enabling self-servicing. This is particularly true for affluent cus-tomers for whom the complexity of the invested assets and individual require-ments are limited. Ultimately, as a younger generation of private banking customers comes of age, private banks will have to find ways to integrate devices and channels in the manner they expect. going forward, therefore, private banks will have to meet their clients’ new expectations and invest more resources into developing their smartphone and tablet offerings.

The business case and possible organi-sational impacts, however, vary signifi-cantly based on the type of services offered and the type of customer. They are thus hard to quantify at this stage. A number of key questions still need to be addressed including:

• Howwilltheclientsusethedevice?

• Will the private banker be partly bypassedbytheclient?Howwillincumbent private banking channels change or evolve following the

introductionofmobiletechnology?how will the evolution be different for the various wealth segments servedbytheindustry?

• Inthelongrunwillthebondbetweenthe private bank and the client be weakened?Howbestcanprivatebanksmitigatethispotentialrisk?

• Willtheclientbemoreinclined, with improved access to financial information, to purchase more complex financial products (with highermargins)?

• how do you provide a ‘premium’ experience over the internet and mobilephones?


CoRPoRATE BAnKIng5

24 global Finance Magazine, June 2011 (www.gfmag.com).


M-banking has yet to be developed to a great extent in the corporate bank-ing segment. To date, only a handful of banks offer corporate mobile and/or tablet solutions that differ from the retail offering i.e. are tailored to meet the requirements of corporate decision-makers (e.g. treasurers). yet there have been recent signs of accelerated adop-tion. however, given the high penetra-tion of mobile devices among corporate representatives, it seems a natural next step for banks to further develop their corporate m-banking solutions, in order to enhance the customer experience, improve products and possibly deploy new fee generating offerings. Moreover, these key corporate decision-makers are now showing a greater interest in accessing mobile corporate banking services24.

5.2 Propositions

Corporate m-banking solutions aim to assist corporate treasurers in performing their duties. They endeavour to do this by giving them easy access to key information in the most appropriate, and possibly customised, format, and by providing an alternative channel for initiating or authorising transactions.

Functionalities can include, for example:

• Cashpositionsnapshotsacrossac-counts, across countries, and poten-tially across different banks (implying a degree of cooperation or a third party solution)

• Approvalsoftransactions,e.g.invoice payments, foreign exchange (Fx) trading or wires, including those requiring multiple signatories to gain approval

• Checksonthestatusand/orout-come of major financial transactions (either reactively through a status-driven alert, or proactively through a customer-initiated inquiry)

• Triggeredand‘actionable’alertsthat enable decision-makers to make corporate decisions instantaneously (e.g. positive pay or liquidity man-agement issues)

• Advancedcashandliquidityman-agement

• Out-of-bandauthenticationtoaugment the security and safety of existing channels, such as online and over-the-phone interactions

key corporate decision-makers are now showing a greater interest in accessing mobile corporate banking services.

40—41

In 2011, Wells Fargo launched its CEo Mobile deposit service for corporate clients. The iPhone app is a rare example of a mobile corporate banking solution which offers a wider range of services than the online platform.

The CEo Mobile deposit is not only an extension of web portal services but also allows customers to capture cheque and money order images and deposit funds in their corporate bank accounts. The mobile app synchronises in real-time with the online CEo portal and even gives users the option to enter location information to make it easier to identify deposits.

In addition to these transaction services, the CEo Mobile deposit service enables users to receive alerts about critical transactions or items that need attention, review account balances and transactions, manage commercial card expense reporting, review and reset rates for expiring term loans, and administer and reset passwords.

Illustration of Wells Fargo iPhone app:

Case Study: Wells Fargo


Beyond the m-banking services pro-vided, security on a mobile device is a a key element that must be addressed to ensure the adoption of corporate m-banking solutions by corporate decision-makers25.

Additionally, since each corporate treasurer may operate differently ac-cording to their company’s policies and structure (e.g. treasury management by business unit vs. key currency), m-banking solutions will need to adapt to the clients’ specific requirements by offering a degree of customisation.

Financial service institutions will need a good knowledge of their clients’ proc-esses to best design and deploy mobile solutions. In the short term this could potentially favour the incumbent banks, which already have an understanding of their clients’ requirements. Those will-ing to target specific market segments – such as Silicon Valley Bank, which is offering fast-growing SMEs the ability to make payments on the go with its new mobile payments platform26 – may also be able to benefit from the advantages of differentiation.

one of the better-known corporate applications currently in use is that at Wells Fargo. This application provides traditional account and reporting information as well as allowing account actions, such as wire release, fund movement approvals and payment decisions.

hSBC also launched its mobile serv-ice – hSBCnet Mobile – for corporate treasurers in november 2011, a service that “has been used to authorise $500 million in transactions in 19 Asia Pacific countries in its first 19 weeks”27 and over $1.2 billion value of transactions glo-bally since its launch. hSBCnet mobile features include account balance and statement checking, priority payment authorisation including inter-account transfers, ACh credits/debits and cross-border payments, and alert services on three of the most used mobile platforms (ioS, Android and Blackberry).

Smaller banks are also attempting to differentiate themselves by offering corporate banking products. Pinnacle Bank, for example, has a presence in only eight American states; its Business Mobile Bank service sends alerts to your phone regarding account activity, and allows you to carry out actions such as the approval of fund transfers. Meanwhile Monetico Bank and Trust, with only nine bank branches, has a ‘Mobile Business Banker’ service that includes an integrated branch and ATM locator.’

25 Celent, december 2011, ‘Corporate Mobile Banking: Revolutionising Cash Management’ (www.celent.com). 26 Silicon Valley Bank 2012.27 Finextra, 29 March, 2012.

28 Source: Ait group Fundtech.

42—43

5.3 Implications

Ad hoc corporate banking solutions could prove a key competitive differ-entiating factor for corporate banks within the context of an industry in which time and the ability to make decisions on a 24/7 basis is critical and currently limited by location and con-nectivity constraints. As stated earlier, a solution’s ability to be tailored to the customer’s needs may well prove a key feature, in particular for larger and/or more complex organisations. Moreover, ongoing relationships could be lever-aged to customise the solution directly in collaboration with the client.

however, larger corporations invariably hold their funds in multiple accounts spread across numerous financial insti-tutions. Therefore, to be truly effective, a corporate mobile banking solution will have to offer a degree of interoper-ability between competing financial service providers. The first provider, whether financial institution or not, which gains a dominant position as an enterprise “treasury hub” may subse-quently be hard to displace.

Additionally, m-banking solutions, as a new offering, could allow corporate banks to introduce a new revenue stream through m-banking fees. Although most mobile services are generally offered free of charge, at least 50% of corporate treasurers would be willing to pay for them28.

however, within this space there are a number of key questions that still need to be addressed:

• Howwilltheclientsusethedevice?Will they ever wish to initiate complex transactions using a mobilesolution?

• Whatrolewillitplaywithintheexist-ingsetofproducts?

• WhatistheopportunitywithinthecontextofSMEbanking?


InnoVATIon And FIRST-MoVER AdVAnTAgES

629 www.simple.com.30 investorbee-px.rtrk.co.uk.31 www.saveup.com.32 global Savings Forum, november 2010, Expanding Customers’ Financial options Through Mobile Payment Systems: The Case of Kenya.

There are a huge number of mobile financial service solutions coming to market. These not only include the incumbent financial institutions and developing telecoms businesses men-tioned previously, but also new financial institutions that are taking advantage of this emerging channel. Simple Finance Technology Corporation29, for example, does not claim to be a bank but of-fers transparent financial management through its interface with pre-existing accounts; its mobile platform is a key feature of its solutions, allowing users to keep track of their finances in real time. In the future it is not unforeseeable that alternative financial service providers such as InvestorBee30 (an easy-to-use online investment platform) and Save-Up31 (a service that offers sponsored rewards to those who reduce their debt and increase their savings) could also develop their mobile offering into customised applications.

With such propositions appealing to the mass market it is important to pay close attention to how the average consumer feels towards these different providers. Although some “traditional” financial service institutions are trusted with m-payments by up to 40% of consum-ers, organisations such as PayPal are not far behind, having benefitted from first-mover advantages in the mobile payments landscape. This has placed it – in terms of consumer trust – above companies such as Visa and MasterCard who pride themselves on being experts in electronic payments.

This trend has also been replicated in the developing world, with M-Pesa now a dominant player in the financial serv-ices landscape – with its banking arm, M-Kesho, experiencing a faster initial uptake than M-Pesa itself32 – having rap-idly gained the trust of much of Kenya.

Such first-mover advantages for those offering attractive propositions hold both challenges and opportunities for incumbent financial service institutions. To remain dominant in the market, and to gain the trust of consumers, they must be seen to be visible and effective across a variety of platforms. Mobile, as the most portable, and increasingly the most ubiquitous, of platforms is a key area in which a strong financial manage-ment proposition is essential.First-mover advantages

for those offering attractive propositions hold both challenges and opportunities for incumbent financial service institutions.

44—45

ConCLUSIonS7

In the current economic climate – in which banks are limiting investment, focussing on cost-cutting exercises and retrenchments in their core business – there is a general lack of focus on inno-vation. Mobile financial services are one of the few exceptions to this, both be-cause of the drivers mentioned earlier in the report and because they represent an untapped opportunity waiting to be exploited either by telecom providers, internet companies or new entrants into the financial services industry. Financial service players are therefore looking to exploit this emerging new channel or to respond to potential competition with their own mobile offerings.

overall, mobile financial services are an attractive opportunity from the perspective of an incumbent, of a new entrant and of an institutional inves-tor. Although the industry started to emerge in the mid 1990s, it is still at an early stage of development. over recent years the industry has started to move at a speed that is more typical of an online start-up than the usual pace of financial services.

For any player looking at entering this market – either by targeting end users or through the provision of services to business players – there is no question about the size of potential opportunity. There are nonetheless a number of criti-cal points that need to be addressed in order to be successful:


33 google, for example, saw use of its mobile wallet application double after modifying the system to allow the addition of cards issued by anyone, even if they were not in a direct partnership with google.

• Thecompetitivelandscape: The business environment is develop-

ing rapidly with a significant number of players and forces. Potential opportunities are difficult to take advantage of without a good view of the market direction

• Positioning: defining which part of the financial service value chain to engage in and what type of user experience to provide is essential. Technological developments are triggering waves of disruptive innova-tion (e.g. cloud computing, real-time alerts) that will impact what services are delivered, how this takes place, on which platform and along which data pathway. Ensuring interoperabil-ity will be a key part of a successful positioning33

• Clientneedsandcharacteristicsonthe demand side: Ultimately the client is king, and the value proposition should be enriched and expanded into different directions to better integrate it with what the customer perceives as valuable to him/her

• Businesscase: Mobile financial service providers’ revenue drivers and pricing models can be different from those of an incumbent financial services institution. Implicit in the provision of these services are com-ponents (e.g. data) with an intrinsic value that could be monetised, keep-ing in mind the need to rely on realis-tic assumptions and develop various scenarios of potential user adoption. A key objective at the beginning of such a process should be the devel-opment of a critical mass to ensure a robust and sustainable business

46—47

FISERV VIEW oF ThE MARKET

A Compelling landscape for Financial Institutionsit is evident to Fiserv that mobile financial services have matured and become “mainstream” in the last few years. we know this because over 1,200 financial institutions have selected our mobiliti suite of products to power their mobile channel across five continents and there are now millions of end-users transacting with their bank or credit union through our platforms every day.

mobile channel matu-rity looks different across jurisdictions, financial institution types and lines of business. yet, we see common themes at play, including the shift to more transactional mobile banking, the emergence of mobile as a distinct channel and the potential cost savings and revenue opportunities that can be achieved by providing mobile banking service offerings.

From Foundational to Transformationalmany financial institutions already have what we term as “first generation” mobile solutions and func-tionality in place, includ-ing s; balances, transfers, branch locators and bill payment.

now that end-users and banks alike are comfort-able with these founda-tional services, it is time to expand mobile financial services offerings. beyond replacing existing services in a new channel, next generation mobile banking services are trans-forming how consumers manage their finances. mobile payments and services that augment the payments experience are central to this transforma-tion.

topical examples of how Fiserv is involved include; remote cheque deposits through the use of mobile device cameras, location-based merchant offers and real-time p2p payments using mobile phone num-bers as payee identifiers.

A Distinct Channelbankers now see mobile as a distinct channel. as recently as 2011, finan-cial institutions perceived mobile as an ‘extension of online banking’. this perception has changed. Fiserv believes this is because the industry is beginning to embrace the concept of “channel specialization”.

Fiserv uses the metaphor of “snacking, lunching and fine dining,” to describe how consumers use the mobile, online and branch channels. Fine dining ap-propriately describes the branch channel (and to some extent, the contact centre), which offers a full menu of services and is well-suited for activities where personal interaction is preferred, much like the experience offered at a fine restaurant. because the online channel is well-suited to detailed self-service activities, consumers use the channel for routine and structured banking activities such as managing budgets / finances and turning off paper statements.

this makes the way consumers use the online channel like sitting down to eat lunch.but, use of the mobile channel is different. the mobile channel is like “snacking” because it lends itself to spontaneous banking interactions that typically take less than 60 seconds to accomplish or have a sense of urgency, such as checking balances at a retail checkout or paying a bill at the last minute.


consumers rely on mobile banking “snacks” to satisfy an immediate need at any time, in any place. Financial institutions that can make the use of mo-bile banking more appetiz-ing to on-the-go end users stand to benefit.

More Than Technologyas the mobile channel matures, it is also clear to us that mobile is more than just technology. it is a distinct channel that is transforming the banking industry forever.

beyond technology, keeping pace with this transformation requires financial institutions to put in place formal channel management disciplines, proactive risk manage-ment procedures, change management programmes, consumer education, effective customer care processes, and end-to-end service design.

by viewing mobile banking as a positive disruptive force for the financial services industry, banks are likely to establish the institutional mindset required to successfully make the transition.

From end to end-to-endmany banks have already reported that there is a distinct trend toward the mobile channel becoming the dominant touch-point for their institutions. this makes unplanned outages, inconsistent de-vice / oS support, security vulnerabilities and the like unacceptable.

as such, the question be-ing asked by banking exec-utives is no longer “what does the front-end look like,” but rather, “how do we make sure our custom-ers have unfettered access to available services every second of every day?” to that end, financial institution executives in charge of mobile channel development are focusing their energies on making their mobile banking and payments end-to-end infrastructure banking-grade.

Fiserv views this as an im-portant step in the chan-nel’s maturation that will contribute to the sustained success of mobile banking.

Reduced Costs and More Profitable Customerslast but not least is the notion of return on invest-ment from the delivery of mobile financial services. the mobile channel is already profitable for many financial institu-tions. industry data tells us that users of the mobile channel are cheaper to serve, churn less often, increase their card spend-ing and are more likely have additional banking products than those who only use more traditional banking channels, includ-ing online banking users who have been among the most sticky and profitable banking customers. given how relatively new mobile banking is, response to the channel and benefits derived are astounding.

it is for these reasons that Fiserv encourages bank-ers from all corners of the world to read “mobile Financial Service: a com-petitive (and fragmented) landscape” and commit to investing in the mobile banking transformation. it will be worth it.

48—49

ABoUT FISERV

Fiserv (naSdaQ: FiSv) is a leading global provider of information manage-ment and electronic commerce systems for the financial services industry. Fiserv provides integrated technology and services that create value for our clients. Fiserv drives in-novation that transforms experiences for more than 16,000 clients worldwide including banks, credit unions and thrifts, billers, mortgage lenders and leasing companies, broker-age and investment firms and other business clients.

Fiserv mobile Solutions are recognized as the best go-to-market solutions for financial institutions that are looking to satisfy today’s needs for mobile banking while support-ing the evolution of their mobile channel particu-larly into payments. as the world’s most proven pro-

vider of digital and mobile payment solutions, Fiserv is uniquely positioned to help you deliver on all aspects of your emerging mobile payments ecosys-tem. mobilititm from Fiserv provides an all-in-one mo-bile banking, alerting and payments solution, perfect for financial institutions of all sizes. it is available in distinct versions, includ-ing mobiliti enterprisetm, mobiliti edgetm and mobiliti reachtm.

mobiliti enterprise is a highly configurable mobile banking, alerts and pay-ments solution that that enables tier-1 financial institutions across the globe to deliver the most comprehensive breadth of transactions services today its customers. it can be customized and extended to your specific requirements with pre-built options and innova-tions that increase your speed to market.

mobiliti edge delivers a comprehensive mobile financial services platform, which includes out-of-box mobile payments and en-terprise alert capabilities. it has flexible integration options that allow financial institutions in sophisticat-ed banking markets to add capabilities to align with their business strategies.

mobiliti reach enables banks in emerging econo-mies to deliver a complete and carrier-independent mobile banking and pay-ments solution. it is de-signed to meet the specific needs of the unbanked and underbanked segments.

when it comes to the mobile channel and digital channels in general, Fiserv delivers the organization-al, product and opera-tional confidence allowing financial institutions to get ahead of the curve. more than 1,200 financial insti-tutions in five continents have selected mobile solu-tions from Fiserv.

fiserv.com/mobile


ABoUT PAyMEnTS CARdS And MoBILE

in business since 1994, payments cards & mobile is an established and award-winning digital and physical publishing platform for payments companies globally. we work with recognised in-dustry experts to provide impartial, up-to-date and relevant information and analysis on every area of payments.

personal relationships have been the hallmark of our business. we remain committed to working closely with our many long-standing and new customers in produc-ing quality editorial and providing a variety of ways in which you can position your business and key personalities in this increasingly competitive industry.

publishing - payments cards & mobile is the leading payments publica-tion covering every aspect of the international card, mobile and contactless payments business. we mail 11,000 copies of the magazine to leaders and payment experts, and dis-tribute it at all the major global conferences and exhibitions.

mobile payments world covers the latest news, developments and key players in mobile pay-ments, mobile commerce, near-field communication (nFc) and mobile money transfer. mobile payments world is a bi-weekly news-letter for the busy profes-sional who wants to scan the latest happenings and trends on a more regular basis.

our other services:

research – payments cards and mobile re-search prepares reports on a variety of topics for our leading magazines. these are often available as more comprehensive reports on the research pages of our website. we also provide bespoke research projects on specialist subjects includ-ing fraud, country reports, Sepa, pSd, card networks, mobile payments, mobile money transfer and mobile contactless payments.

yearbooks: our yearbooks – european payment cards yearbook and russia and ciS payment cards year-book – are fully-updated every year with card indus-try figures, and include a wealth of information from central banks, interbank companies and associations and individual banks as well as all the latest card market and consumer finance de-velopments. each payment card yearbook is available as a complete volume, containing analysis and statistics, with charts, dia-gram’s and tables covering international cards issued, domestic card schemes, acquisition and acceptance.

marketing and communica-tions: payments cards and mobile’s partner, mag-nacarta pr ltd, provides you with a team of sea-soned communicators and marketers with decades of experience in pay-ments – cards, electronic, contactless, mobile and the ever-evolving ways to pay and be paid. we can help you with strategies to best reach your target markets, marketing pr, media rela-tions, issues management, business development, events, speechwriting, cus-tomer literature, social me-dia tactics and employee or change communications.

paymentscardsandmobile.com

ABoUT VALUE PARTnERS

value partners has an established financial institutions practice with a proven track record in cards, payments and transaction banking consultancy. over a quarter of our projects are now on behalf of financial institu-tions. we have completed projects with top banks, issuers, acquirers, processors and payments schemes.

value partners works across all sectors of the telecommunications and digital marketplace, as one of the largest tmt practices worldwide, with particular expertise in public and commercial broadcasting, satellite and pay tv, publishing, digital media, sports, fixed and mobile voice and broadband, license bids, network infrastructure and equipment.

over the last 19 years we have delivered real benefits for our clients, 60% of whom have been with us for over 8 years, building on our deep industry insights into key issues for these sectors.

value partners has played a primary role in the development of innovative solutions, especially those at the crossroads between industries. we have assisted 3 of the world’s top 5 banks, the leading european financial institutions and the main telecoms operators in europe, asia, middle east and latin america.

value partners works with the leading blue chip international media companies, including 30 of the leading pay-tv and free-to-air broadcasters in more than 20 markets. we serve the largest private equity firms with an interest in financial services in the telco and media industry.

value partners helps its clients adapt their busi-ness models in an increas-ingly complex business environment, to maximise impact and returns in the financial services, pay-ments, telco, technology and digital media spaces.

Founded in milan in 1993, value partners’ rapid growth testifies to the value it has created for clients over time.

today it draws on 25 partners and 280 professionals from 23 nations, working out of offices in milan, rome, london, istanbul, São paulo, buenos aires, beijing, Shanghai, hong kong and Singapore.

value partners has built a portfolio of more than 350 international clients – from the original 10 in 1993 – with a worldwide revenue mix.

valuepartners.com

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