|
Telecom Insider Excerpt
Internet banking has grown dramatically over the past decade. In 2007, more than 30% of individuals in countries making up the Organization for Economic Co-operation and Development (OECD) used the Internet to access their bank accounts, make payments and manage their investments from home or work. In particular, more than 55% of Scandinavians and the Dutch decided the trip to their bank was not worth it and decided to log on to the Internet.
This behavior is not exclusive to the developed world. Countries in Latin America have also witnessed an explosive growth in Internet banking. For instance, according to the Chilean Superintendency of Banks and Financial Institutions, in 2002 Internet transactions in Chile represented only 5% of the sum of the transactions carried over ATMs, branches and the Internet. That number more than tripled, to 17%, in 2008. Also, between 2002 and 2008 the amount of money transferred electronically in Chile grew 100 times.
Over the past few years mobile financial services have grown both in the developing and the developed world by offering primarily two types of services: mobile banking and mobile payments and transfers. Mobile banking consists of the provision of banking services to those who already have access to the financial system. The services offered include money transfers directly from the bank account, balance inquiries and retail purchases and payments of services with the mobile phone, among others. Mobile payments and transfers tend to focus on the unbanked sections of the population with access to mobile phones. Usually the services offered in this case include money transfers using SMS and the mobile operator’s network of retail stores.
This report analyzes the opportunities that mobile banking will create for mobile operators and banks in Latin America. In particular, the growth of 3G+ and smartphones will enable banks and operators to offer their clients new services in the sphere of mobile banking. It also examines some business models under which mobile banking can develop: banks going it alone and hybrid models where banks and operators work side by side. This report also warns about the dangers of poor regulation for the future of mobile banking.
We expect that customers in Latin America will start exchanging their desktops and laptops for their handhelds, where they will not only be able to access their bank portals from any location but will also be able to enjoy other value-added services such as contactless retail payments, money transfers, payments and investments. This channel will be attractive to mobile subscribers in Latin America, and it will attract operators that will be able to offer new value-added services to their clients, reduce churn and increase revenues. It will also attract banks that will take the opportunity to increase the services they offer to existing clients at a reduced cost.
Published monthly for each of the world’s most dynamic regions, Telecom Insiders are packed with trend analysis, industry best practices, market sizing and forecasting, competitor analysis, and case studies, providing you information you can leverage to make better business decisions. For more information about Telecom Insiders, please contact us via email at info@pyr.com or telephone at (617) 871-1900
Author: David Noe
Publication Date: July 2010
|
