Slowing down the m-banking future
“Slow down the future.”
This is how a former head of strategy for Vodafone Europe described to me what mobile operators try to do. Theirs is essentially a fixed-asset business, in which networks have been built and the aim is to maximize the return from customers. In that sense operators are not about innovation around new technologies, because they’re trying to recoup their investments in technologies they’ve already deployed.
Does this mean operators aren’t interested in mobile banking? So far, quite the opposite.
Mobile banking and payments are two potential revenue sources from existing customers. They may be particularly useful in increasing average revenue per user or ARPU of low-income customers who generate low revenue and low margins. Payment and banking products that are fee-based and reduce customer turnover might be just what’s needed to make these customers more profitable.
Where do handset makers like Nokia and Motorola come out on m-banking? They make money when they sell phones, so adding new features and functions is essential. Building new payment capabilities into phones is just the kind of differentiator that will make the next generation of models sell.
Will handset makers build in this capability even if there are few places where you can tap your phone and make a payment? Which standard will they use, if any? And how can combining the motivations of operators and handset makers increase mobile banking services for poor people? A few questions we’ll continue to explore.
