Posted by Mark Brousseau
The “underserved” market is considered one of the fastest growing segments in the United States and represents significant potential for banks willing to develop new products and services -- with the appropriate risk safeguards -- and channels to distribute them, according to a study from KPMG.
The KPMG study characterizes the underserved market -- the unbanked (consumers without a transaction account) and underbanked (those without access to incremental credit) -- as having grown significantly in the United States during the economic downturn. The market represents about 88 million individuals with nearly $1.3 trillion in income, according to the KPMG study. Based on forecasts, as many as six million people could be classified as "underserved" in the next two years.
"As banks transform their business models to address a new marketplace, they need to examine the potential of the underserved market as new revenue streams are necessary due to increasing compliance costs and various fees coming under pressure as a result of regulatory reform," said Carl Carande, national account leader of KPMG’s Banking and Finance practice. "In the current environment, we see heavy competition among banks chasing customers with high credit scores, with decreasing margins, leaving the underserved market for those willing to invest in it."
Carande also says that banks, before moving forward, need to ensure that appropriate risk-protections are built-in for the bank and customer. "Risk management is a key element of the early opportunity assessment phase, as banks review their current state and design a portfolio of business opportunities for both the near-term and short-term," said Carande. "From there, it is a matter of creating a target operating model before moving to the end game of deploying a multi-generational plan."
According to the KPMG study, banks can pursue a range of key target segments among the underserved, ranging from those who do not use a bank to young adults with little knowledge of financial products.
"Customer segmentation is critical to serving the underserved market and each target segment requires a disciplined and strategic approach," said Timothy Ramsey, managing director in KPMG LLP’s Performance and Technology Advisory group. "Those banks that carve out a niche that makes sense -- and can successfully market and brand themselves accordingly -- will distinguish themselves from the competition."
"When serving this market, banks also have an opportunity to establish customer loyalty by helping these customers more effectively manage their personal finances and develop better saving and investing habits through educational, financial literacy programs," said Ramsey.
What do you think?
Showing posts with label mobile banking. Show all posts
Showing posts with label mobile banking. Show all posts
Monday, June 13, 2011
Wednesday, May 25, 2011
Cost versus value – who wins?
By Laura Knox, inside sales team leader, DataSource Mobility
In today’s ever challenging economy it’s no surprise that we see technology customers focusing more and more on cost ... and while I am all about getting a bargain and finding the right solution at the right price for my clients, I often find myself explaining that cost does not always equal value.
Much more goes into the concept of value than the upfront purchase price of any solution. You have to think about potential downtime if the equipment breaks, repair costs, replacement if your workers refuse to use the machine because of poor performance, replacement cost if a device fails, upgraded warranty fees (most low cost solutions come with little or no warranty coverage) and the time any IT staff must spend to keep the devices working properly. So, if we are looking at overall value rather than upfront value the emphasis moves from simply finding something cheap to finding something that is high quality.
Now, most people with a healthy knowledge of IT matters already understand that inferior parts and inferior quality plus lack of service are what equal the attractively low price point of generic industry devices – and they are very anxious not to get stuck trying to support devices that will need constant attention and repair - but try explaining this to a person without IT experience who is tasked with finding a top quality solution at a “bargain bin” price and things get tricky.
So, for those of us who are not IT aficionados but need to make smart decisions for the companies we own or are employed by, the question becomes; how do I tell a high quality device from all the other options? Below is a list of questions that I strongly encourage these folks to ask before purchasing any equipment from a potential vendor.
$ vs. ROI vs. TCO
1) What is it made out of?
2) What type of service and support is included in the cost being quoted (and what will you have to pay extra for)?
3) What is the typical lifespan of the device?
4) Are parts and labor outsourced or does the manufacturer actually make the product?
5) Has it passed any level of rugged certification?
6) What is the typical failure rate for the device?
What do you think?
In today’s ever challenging economy it’s no surprise that we see technology customers focusing more and more on cost ... and while I am all about getting a bargain and finding the right solution at the right price for my clients, I often find myself explaining that cost does not always equal value.
Much more goes into the concept of value than the upfront purchase price of any solution. You have to think about potential downtime if the equipment breaks, repair costs, replacement if your workers refuse to use the machine because of poor performance, replacement cost if a device fails, upgraded warranty fees (most low cost solutions come with little or no warranty coverage) and the time any IT staff must spend to keep the devices working properly. So, if we are looking at overall value rather than upfront value the emphasis moves from simply finding something cheap to finding something that is high quality.
Now, most people with a healthy knowledge of IT matters already understand that inferior parts and inferior quality plus lack of service are what equal the attractively low price point of generic industry devices – and they are very anxious not to get stuck trying to support devices that will need constant attention and repair - but try explaining this to a person without IT experience who is tasked with finding a top quality solution at a “bargain bin” price and things get tricky.
So, for those of us who are not IT aficionados but need to make smart decisions for the companies we own or are employed by, the question becomes; how do I tell a high quality device from all the other options? Below is a list of questions that I strongly encourage these folks to ask before purchasing any equipment from a potential vendor.
$ vs. ROI vs. TCO
1) What is it made out of?
2) What type of service and support is included in the cost being quoted (and what will you have to pay extra for)?
3) What is the typical lifespan of the device?
4) Are parts and labor outsourced or does the manufacturer actually make the product?
5) Has it passed any level of rugged certification?
6) What is the typical failure rate for the device?
What do you think?
Friday, May 13, 2011
Bringing mobile banking to the masses
Posted by Mark Brousseau
The number of unbanked or underbanked mobile subscribers around the world is projected to reach ~2 billion by 2012, according to research from Oliver Wyman and PlaNet Finance Group. Today, only around 50 million subscribers use mobile money services. Most of these deployments have been focusing on first generation mobile money products such as remittances, airtime top-up, bill payments and loan repayment.
The transformational impact of mobile money is expected to come from second generation financial services such as micro-savings, micro-credit and micro-insurance, especially in countries with less than 10 percent retail banking penetration, according to Oliver Wyman. Both telcos and financial institutions should benefit from the take-up of these products, as they reap expertise from complementary skills and deliver more value to customers, the research firm says.
However, the formula for success is not straightforward.
Two distinct models are emerging:
... The distribution of microfinance through mobile money via existing microfinance banks
... The distribution of microfinance through a virtual microfinance bank, operating as a pure mobile player.
“The benefits of these models include a more than twofold increase in access to banking, 20-50 percent lower operational costs for the microfinance institution and revenue or market share benefits for the Mobile Network Operator,” says Arnaud Ventura, co-founder and vice president of PlaNet Finance Group.
In a report, PlaNet Finance Group and Oliver Wyman conclude:
... Mobile Microfinance can have a significant impact on increasing financial services access for unbanked subscribers by eliminating all the disadvantages of physical bank branches. The benefits of this service are both social and economic.
... It is a cost-effective way for banks and MFIs to reach the masses by capitalizing on the widespread penetration of telecom distribution networks. PlaNet Finance and Oliver Wyman also see a new breed of intermediaries emerging that allow partners on both sides to interact smoothly by playing the “interconnection” role, making money on transactions rather than the spread.
Greg Rung, partner at Oliver Wyman said “PlaNet Finance and Oliver Wyman are convinced that, agreeing on a long-term vision, all stakeholders, from banks to distributors to regulators, need to come together to design an adequate offer and build a win-win model that can address all challenges successfully.”
What do you think?
The number of unbanked or underbanked mobile subscribers around the world is projected to reach ~2 billion by 2012, according to research from Oliver Wyman and PlaNet Finance Group. Today, only around 50 million subscribers use mobile money services. Most of these deployments have been focusing on first generation mobile money products such as remittances, airtime top-up, bill payments and loan repayment.
The transformational impact of mobile money is expected to come from second generation financial services such as micro-savings, micro-credit and micro-insurance, especially in countries with less than 10 percent retail banking penetration, according to Oliver Wyman. Both telcos and financial institutions should benefit from the take-up of these products, as they reap expertise from complementary skills and deliver more value to customers, the research firm says.
However, the formula for success is not straightforward.
Two distinct models are emerging:
... The distribution of microfinance through mobile money via existing microfinance banks
... The distribution of microfinance through a virtual microfinance bank, operating as a pure mobile player.
“The benefits of these models include a more than twofold increase in access to banking, 20-50 percent lower operational costs for the microfinance institution and revenue or market share benefits for the Mobile Network Operator,” says Arnaud Ventura, co-founder and vice president of PlaNet Finance Group.
In a report, PlaNet Finance Group and Oliver Wyman conclude:
... Mobile Microfinance can have a significant impact on increasing financial services access for unbanked subscribers by eliminating all the disadvantages of physical bank branches. The benefits of this service are both social and economic.
... It is a cost-effective way for banks and MFIs to reach the masses by capitalizing on the widespread penetration of telecom distribution networks. PlaNet Finance and Oliver Wyman also see a new breed of intermediaries emerging that allow partners on both sides to interact smoothly by playing the “interconnection” role, making money on transactions rather than the spread.
Greg Rung, partner at Oliver Wyman said “PlaNet Finance and Oliver Wyman are convinced that, agreeing on a long-term vision, all stakeholders, from banks to distributors to regulators, need to come together to design an adequate offer and build a win-win model that can address all challenges successfully.”
What do you think?
Monday, April 4, 2011
Top 10 reasons FIs have the advantage in payments
At NACHA’s Payments 2011 in Austin, Texas, today, Fiserv released its Top 10 reasons why financial institutions have the advantage in the battle for consumer payments, including Web and social media payments.
Those reasons are:
1. Consumers express a strong preference for a financial institution-centric new media payments system, according to Fiserv primary and sponsored research.
2. Customers already have an account relationship with their financial institution.
3. Financial institutions have payment systems that are robust, and secure.
4. Financial institutions have extensive fraud prevention, detection, and resolution operations in place.
5. Financial institutions are held to strict privacy practices which today are pervasive throughout their organizations.
6. Payment systems at financial institutions are strongly regulated, so even though banking regulations are currently in flux, consumers are best protected from fraud or abuse.
7. Financial institutions have laws, binding agreements and professional standards governing their payment-related activities.
8. Financial institutions can be held responsible, with known personnel and locations, which may contribute to a higher level of trust by consumers and businesses to handle transactions.
9. Financial institutions payment-pricing models depend on repeat business, not one-time payments, IPOs or collateral advertising revenues.
10. Financial institutions already have extensive, secure, bank-to-bank payment networks in place including ACH, credit card, check clearing and more.
There’s a lot at stake for financial institutions in the payments space. From a revenue perspective, the payments business is the most significant single line-of-business in U.S. banking. In fact, according to First Annapolis Consulting, payments in the U.S. represented more than $282 billion in total revenue.
“Now is the time for financial institutions to strongly defend the payments franchise, while the industry has the advantage,” said George Warfel, consulting director, Fiserv. “However, this will require opening up to new ways of doing business and offering new payments methods that people, merchants and corporations will want to use again and again, such as Internet or web payments, mobile phone and iPad payments, and soon, social media payments.”
What do you think?
Those reasons are:
1. Consumers express a strong preference for a financial institution-centric new media payments system, according to Fiserv primary and sponsored research.
2. Customers already have an account relationship with their financial institution.
3. Financial institutions have payment systems that are robust, and secure.
4. Financial institutions have extensive fraud prevention, detection, and resolution operations in place.
5. Financial institutions are held to strict privacy practices which today are pervasive throughout their organizations.
6. Payment systems at financial institutions are strongly regulated, so even though banking regulations are currently in flux, consumers are best protected from fraud or abuse.
7. Financial institutions have laws, binding agreements and professional standards governing their payment-related activities.
8. Financial institutions can be held responsible, with known personnel and locations, which may contribute to a higher level of trust by consumers and businesses to handle transactions.
9. Financial institutions payment-pricing models depend on repeat business, not one-time payments, IPOs or collateral advertising revenues.
10. Financial institutions already have extensive, secure, bank-to-bank payment networks in place including ACH, credit card, check clearing and more.
There’s a lot at stake for financial institutions in the payments space. From a revenue perspective, the payments business is the most significant single line-of-business in U.S. banking. In fact, according to First Annapolis Consulting, payments in the U.S. represented more than $282 billion in total revenue.
“Now is the time for financial institutions to strongly defend the payments franchise, while the industry has the advantage,” said George Warfel, consulting director, Fiserv. “However, this will require opening up to new ways of doing business and offering new payments methods that people, merchants and corporations will want to use again and again, such as Internet or web payments, mobile phone and iPad payments, and soon, social media payments.”
What do you think?
Wednesday, February 2, 2011
2011 Predictions for Payments Security
Posted by Mark Brousseau
As 2010 came to an end, it was no surprise that payments security was a top priority for financial institutions, credit card companies, merchants and consumers.
Progress in stopping attacks was achieved last year, resulting in many high-profile arrests. More than 50 individuals involved in the highly publicized Zeus gang were apprehended, and developers of the Mariposa botnet, which stole information from approximately 12.7 million users around the world, were arrested. Most recently, five arrests were made this year for taking part in a series of denial-of-service attacks against major websites as part of the group "Anonymous."
Despite these efforts, cyber fraud is far from being eliminated. In fact, it is evolving into groups (WikiLeaks), resulting in even more malicious and dangerous attacks on consumers and organizations in 2011.
Daniel McCann, president of NetSecure Technologies, a provider of online transaction security solutions, sees the following payments security trends and issues in 2011:
... The emergence of hacker groups
... An increase in mobile fraud as mobile commerce increases
... More attacks on Apple’s i-products as they continue to dominate the industry
... A significant increase in security spending, especially in new technologies like virtualization
What do you think?
As 2010 came to an end, it was no surprise that payments security was a top priority for financial institutions, credit card companies, merchants and consumers.
Progress in stopping attacks was achieved last year, resulting in many high-profile arrests. More than 50 individuals involved in the highly publicized Zeus gang were apprehended, and developers of the Mariposa botnet, which stole information from approximately 12.7 million users around the world, were arrested. Most recently, five arrests were made this year for taking part in a series of denial-of-service attacks against major websites as part of the group "Anonymous."
Despite these efforts, cyber fraud is far from being eliminated. In fact, it is evolving into groups (WikiLeaks), resulting in even more malicious and dangerous attacks on consumers and organizations in 2011.
Daniel McCann, president of NetSecure Technologies, a provider of online transaction security solutions, sees the following payments security trends and issues in 2011:
... The emergence of hacker groups
... An increase in mobile fraud as mobile commerce increases
... More attacks on Apple’s i-products as they continue to dominate the industry
... A significant increase in security spending, especially in new technologies like virtualization
What do you think?
Monday, December 6, 2010
Cloud computing grows up
By R. Edwin Pearce
The next year will be big for cloud computing, with the technology transitioning from “early adopter status” into a mainstream platform for IT. That’s according to IDC, a leading research and advisory firm, which ranked the maturation of cloud computing among its top IT predictions for 2011.
IDC predicts that spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011, up 30 percent from 2010, as organizations move a wider range of business applications into the cloud. Small and medium-sized business cloud use will surge in 2011, with adoption of some cloud resources topping 33 percent among U.S. midsize firms by year’s end.
“[Cloud computing] can no longer be invested in, or managed, as sandbox efforts around the edges of the market. Instead, they are rapidly becoming the market itself and must be addressed accordingly,” warns Frank Gens, senior vice president and chief analyst at Framingham, MA-based IDC.
Gens is exactly right. Organizations of all sizes are taking a hard look at cloud-based solutions as a way to avoid the hefty capital investments and ongoing maintenance and upgrade costs associated with traditional on-premise solutions, and to ensure their IT infrastructure remains up-to-date.
In addition to changing the way organizations access business applications, the growth of cloud computing also will bring mobile banking and payments one step closer to reality, IDC predicts. But this also is true of mobile applications in other industries, most notably healthcare and insurance.
What do you think?
R. Edwin Pearce is executive vice president of sales and corporate development at eGistics, Inc. (www.egisticsinc.com), a leading provider of hosted solutions for payments and document automation. He can be reached at 214-256-4607 or via e-mail at epearce@egisticsinc.com.
The next year will be big for cloud computing, with the technology transitioning from “early adopter status” into a mainstream platform for IT. That’s according to IDC, a leading research and advisory firm, which ranked the maturation of cloud computing among its top IT predictions for 2011.
IDC predicts that spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011, up 30 percent from 2010, as organizations move a wider range of business applications into the cloud. Small and medium-sized business cloud use will surge in 2011, with adoption of some cloud resources topping 33 percent among U.S. midsize firms by year’s end.
“[Cloud computing] can no longer be invested in, or managed, as sandbox efforts around the edges of the market. Instead, they are rapidly becoming the market itself and must be addressed accordingly,” warns Frank Gens, senior vice president and chief analyst at Framingham, MA-based IDC.
Gens is exactly right. Organizations of all sizes are taking a hard look at cloud-based solutions as a way to avoid the hefty capital investments and ongoing maintenance and upgrade costs associated with traditional on-premise solutions, and to ensure their IT infrastructure remains up-to-date.
In addition to changing the way organizations access business applications, the growth of cloud computing also will bring mobile banking and payments one step closer to reality, IDC predicts. But this also is true of mobile applications in other industries, most notably healthcare and insurance.
What do you think?
R. Edwin Pearce is executive vice president of sales and corporate development at eGistics, Inc. (www.egisticsinc.com), a leading provider of hosted solutions for payments and document automation. He can be reached at 214-256-4607 or via e-mail at epearce@egisticsinc.com.
Wednesday, November 17, 2010
7 Major Projects CIOs Should Consider
Posted by Mark Brousseau
With 2011 predicted to be the year when the IT industry will reach nearly $3.5 trillion in revenue and show long-term growth for the next five years, Gartner analysts say there are seven business and IT issues that warrant the greatest attention and demand the clearest strategies for the future.
“We are increasingly living, playing and working in a digital world where people will have no alternatives but to become ‘more digital’ with the assets they have available,” said Stephen Prentice, vice president and Gartner Fellow. “In 2012, the Internet will be 75 times larger than it was in 2002, and if Facebook was a country, it would be the third largest in the world (after China and India). Device and data proliferation is also a reality that cannot be escaped. Smart devices will rise from 60 billion devices in 2010 to more than 200 billion in 2020.”
“Technology is no longer the preserve of the CIO,” said Ken McGee, vice president and Gartner Fellow. “It has become everyone’s property and everyone’s issue.”
With the IT industry on track to show a compound annual growth rate (CAGR) of 4 percent for the next five years Gartner has identified seven business and IT issues that CIOs should act on during the next three years. “CIOs will need to begin implementing these technologies within three years to meet the six year predictions,” McGee said. The seven issues include:
IT/OT Alignment- Inadequate software management of operational technology (OT) systems will result in a major business failure of a top Global 100 company by 2013.
Executives are realizing there are cost savings and management efficiencies to be gained by integrating the IT and OT groups together. Although efforts to integrate groups are challenging, benefits from streamlined budgets, coordinated planning, consistent technology architectural decisions and maximizing technology purchasing power make for extremely compelling cases for IT and OT group integration.
Business Gets Social -Through 2015, 80 percent of organizations will lack a coherent approach for dealing with information from the collective.
Today, social media is changing the way business is conducted. “Understanding the power of communities, the multiple personas of their members expectations, their aspirations and how to interact with them will become essential skills for business in the 21st century,” said McGee. “However, vast sums of money and enormous amounts of time will be spent during this decade and beyond to discover how IT and business leaders best capitalize on the growing spread, power and influence of social networks.”
Pattern-Based Strategy- Through 2015, pattern-seeking technology will be the fastest-growing intelligence investment among the most successful Global 2000.
A Pattern-Based Strategy provides a framework to proactively seek, model and adapt to leading indicators, often-termed "weak" signals that form patterns in the marketplace. It will allow IT leaders to seek-out patterns amidst the burgeoning information sources and model future possibilities. “We have found that senior business and IT leaders see lack of information shareability as a barrier to growth,” Prentice said.
Cloud Computing- By 2016, all Global 2000 companies will use public cloud services.
Cloud computing represents a shift in the relationship between the providers and consumers of IT-based solutions. It constitutes the basis of a discontinuity that amounts to a new opportunity to shape the relationship between those who use IT services and those who sell them. Gartner said worldwide cloud services revenue (including public and private services) is forecast to reach $148.8 billion in 2014.
Context-Aware Computing- By 2016, one-third of worldwide mobile consumer marketing will be context-awareness-based.
Context-aware computing will foster people to be more digital with the assets they have available. Context-aware computing is taking advantage of location and time and is a new era of augmented reality. More than $150 billion of global telecom spending will shift from services to applications by 2012, and the global market for context-aware services will amount to $215 billion.
“Unlocking this potential will be one of the next major challenges for IT,” said McGee. “For example, we expect 75 percent of new search installations to include a social search element. The world is digital and business leaders can’t ignore it.”
Sustainability- By 2016, sustainability will be the fastest-growing enterprise compliance expense worldwide.
As long as the current science surrounding climate change remains credible, organizations should anticipate that the current focus on energy, water and greenhouse gas (GHG) emissions will continue, and this will draw attention to other environmental issues, such as resource depletion, species extinction, bio-diversity and environmental justice. There will remain many hard trade-offs between an organization’s financial and operational performance and that of its environmental performance. Information systems will be critical in the role — from governance, risk and compliance, through corporate social responsibility systems, to enabling new and more-sustainable business models.
New Realities of IT: Balancing Cost and Innovation with Risk and Governance- Innovation accomplishments will be among the top-three selection criteria for new CIOs by 2016.
With the recent global recession, innovative thinkers must find new ways to create growth — in revenue, jobs and industries — in this new business climate. Cost and value optimization must remain a top priority, while the search for growth continues.
Regulatory and corporate demands for greater attention to risk have already begun to emerge. Gartner also foresees a new emphasis on business change governance.
Beyond 2020, Gartner analysts forecast that two emerging trends will become $1 billion markets. First, human augmentation, a technology that focuses on creating cognitive and physical improvements as an integral part of the human body is slowly but steadily becoming a reality and enhancing peoples’ lives.
The second trend is wireless power devices. By 2011, there will be more than 1 billion PCs and 5 billion mobile phones in use in the world, and based on the levels of demand Gartner foresees cumulative sales from wireless power products surpassing $1 billion by 2020.
“We are reaching these observations by exploring future IT growth and future adoption projections upon demand,” McGee said. “We are looking at emerging business and societal trends and based upon our findings, we will indicate likely future IT winners and losers. This methodology will not replace any existing methodologies, but simply complement existing models.”
“Looking forward, we expect to see more deployment of existing technologies in new and innovative ways, and fewer and fewer genuinely new technologies emerging in the mainstream,” said Prentice. “That is not to imply that no new developments will occur, but we are now starting to see the early indications of precursor and trigger technologies for the next wave of technology, which is likely to run from about 2025 through 2080.”
What do you think?
With 2011 predicted to be the year when the IT industry will reach nearly $3.5 trillion in revenue and show long-term growth for the next five years, Gartner analysts say there are seven business and IT issues that warrant the greatest attention and demand the clearest strategies for the future.
“We are increasingly living, playing and working in a digital world where people will have no alternatives but to become ‘more digital’ with the assets they have available,” said Stephen Prentice, vice president and Gartner Fellow. “In 2012, the Internet will be 75 times larger than it was in 2002, and if Facebook was a country, it would be the third largest in the world (after China and India). Device and data proliferation is also a reality that cannot be escaped. Smart devices will rise from 60 billion devices in 2010 to more than 200 billion in 2020.”
“Technology is no longer the preserve of the CIO,” said Ken McGee, vice president and Gartner Fellow. “It has become everyone’s property and everyone’s issue.”
With the IT industry on track to show a compound annual growth rate (CAGR) of 4 percent for the next five years Gartner has identified seven business and IT issues that CIOs should act on during the next three years. “CIOs will need to begin implementing these technologies within three years to meet the six year predictions,” McGee said. The seven issues include:
IT/OT Alignment- Inadequate software management of operational technology (OT) systems will result in a major business failure of a top Global 100 company by 2013.
Executives are realizing there are cost savings and management efficiencies to be gained by integrating the IT and OT groups together. Although efforts to integrate groups are challenging, benefits from streamlined budgets, coordinated planning, consistent technology architectural decisions and maximizing technology purchasing power make for extremely compelling cases for IT and OT group integration.
Business Gets Social -Through 2015, 80 percent of organizations will lack a coherent approach for dealing with information from the collective.
Today, social media is changing the way business is conducted. “Understanding the power of communities, the multiple personas of their members expectations, their aspirations and how to interact with them will become essential skills for business in the 21st century,” said McGee. “However, vast sums of money and enormous amounts of time will be spent during this decade and beyond to discover how IT and business leaders best capitalize on the growing spread, power and influence of social networks.”
Pattern-Based Strategy- Through 2015, pattern-seeking technology will be the fastest-growing intelligence investment among the most successful Global 2000.
A Pattern-Based Strategy provides a framework to proactively seek, model and adapt to leading indicators, often-termed "weak" signals that form patterns in the marketplace. It will allow IT leaders to seek-out patterns amidst the burgeoning information sources and model future possibilities. “We have found that senior business and IT leaders see lack of information shareability as a barrier to growth,” Prentice said.
Cloud Computing- By 2016, all Global 2000 companies will use public cloud services.
Cloud computing represents a shift in the relationship between the providers and consumers of IT-based solutions. It constitutes the basis of a discontinuity that amounts to a new opportunity to shape the relationship between those who use IT services and those who sell them. Gartner said worldwide cloud services revenue (including public and private services) is forecast to reach $148.8 billion in 2014.
Context-Aware Computing- By 2016, one-third of worldwide mobile consumer marketing will be context-awareness-based.
Context-aware computing will foster people to be more digital with the assets they have available. Context-aware computing is taking advantage of location and time and is a new era of augmented reality. More than $150 billion of global telecom spending will shift from services to applications by 2012, and the global market for context-aware services will amount to $215 billion.
“Unlocking this potential will be one of the next major challenges for IT,” said McGee. “For example, we expect 75 percent of new search installations to include a social search element. The world is digital and business leaders can’t ignore it.”
Sustainability- By 2016, sustainability will be the fastest-growing enterprise compliance expense worldwide.
As long as the current science surrounding climate change remains credible, organizations should anticipate that the current focus on energy, water and greenhouse gas (GHG) emissions will continue, and this will draw attention to other environmental issues, such as resource depletion, species extinction, bio-diversity and environmental justice. There will remain many hard trade-offs between an organization’s financial and operational performance and that of its environmental performance. Information systems will be critical in the role — from governance, risk and compliance, through corporate social responsibility systems, to enabling new and more-sustainable business models.
New Realities of IT: Balancing Cost and Innovation with Risk and Governance- Innovation accomplishments will be among the top-three selection criteria for new CIOs by 2016.
With the recent global recession, innovative thinkers must find new ways to create growth — in revenue, jobs and industries — in this new business climate. Cost and value optimization must remain a top priority, while the search for growth continues.
Regulatory and corporate demands for greater attention to risk have already begun to emerge. Gartner also foresees a new emphasis on business change governance.
Beyond 2020, Gartner analysts forecast that two emerging trends will become $1 billion markets. First, human augmentation, a technology that focuses on creating cognitive and physical improvements as an integral part of the human body is slowly but steadily becoming a reality and enhancing peoples’ lives.
The second trend is wireless power devices. By 2011, there will be more than 1 billion PCs and 5 billion mobile phones in use in the world, and based on the levels of demand Gartner foresees cumulative sales from wireless power products surpassing $1 billion by 2020.
“We are reaching these observations by exploring future IT growth and future adoption projections upon demand,” McGee said. “We are looking at emerging business and societal trends and based upon our findings, we will indicate likely future IT winners and losers. This methodology will not replace any existing methodologies, but simply complement existing models.”
“Looking forward, we expect to see more deployment of existing technologies in new and innovative ways, and fewer and fewer genuinely new technologies emerging in the mainstream,” said Prentice. “That is not to imply that no new developments will occur, but we are now starting to see the early indications of precursor and trigger technologies for the next wave of technology, which is likely to run from about 2025 through 2080.”
What do you think?
Thursday, September 23, 2010
Bookies Pick iPad Killer
With rumors swirling that BlackBerry maker Research in Motion (RIM) could unveil its forthcoming tablet -- a.k.a. “the BlackPad” -- as early as next week, consumers and analysts are guessing what company will be next to officially announce a tablet to compete with Apple’s iPad.
Mickey Richardson and his team at Bookmaker.com, one of the leading sportsbooks, have calculated the odds on who the next company to release a tablet to compete with Apple’s iPad in 2010 will be.
LG +300 25%
HTC +100 50%
SHARP +300 25%
MOTOROLA +300 25%
NOKIA +150 40%
SANYO +300 25%
For those of you unfamiliar with the joys of wagering, the +/- indicates the return on the wager. The percentage is the likelihood that response will occur. For example: Betting on the candidate least likely to win would earn the most amount of money, should that happen.
Where would you place your bet?
Mickey Richardson and his team at Bookmaker.com, one of the leading sportsbooks, have calculated the odds on who the next company to release a tablet to compete with Apple’s iPad in 2010 will be.
LG +300 25%
HTC +100 50%
SHARP +300 25%
MOTOROLA +300 25%
NOKIA +150 40%
SANYO +300 25%
For those of you unfamiliar with the joys of wagering, the +/- indicates the return on the wager. The percentage is the likelihood that response will occur. For example: Betting on the candidate least likely to win would earn the most amount of money, should that happen.
Where would you place your bet?
Monday, April 26, 2010
TAWPI @ NACHA Payments
Posted by Mark Brousseau
During a luncheon presentation for journalists at its Payments conference in Seattle, NACHA shared some key takeaways from its PayItGreen Survey 2010:
Less paper equals less unhappiness!
• Respondents expressing lower levels of satisfaction with primary bank or credit union also report lower “electronic only” rates for key financial institution accounts
• This overall finding extends to billers as well
• Proportion of dissatisfied/neutral customers doubles as ‘electronic’ behavior decreases
In billing, minimalism is everything
• Focus on eliminating clutter, reducing paper waste and easy access to statements
For bill payment, expediency is the bottom-line
• Reduction of time and effort emerges as the primary driver
Don’t rule out the opt-out, because most consumers are OK with it
• 6 out of 10 respondents are open/neutral to billers/banks shutting off paper statements automatically
“Double-dipping” – when consumers receive a bill via paper and electronically – occurs more than twice as often with financial services accounts compared to other billers
Among various types of financial accounts, checking and card accounts leads in paperless while others lag farther behind
• Accounts such as investments, lending and insurance have lower rates of paperless
In general, financial services companies lag their non-financial services billers in getting customers to go paperless
• Some sectors such as utilities need particular attention (perhaps bankers can help their corporate clients!)
Providers can improve paperless behavior with particular site or product changes
• Make higher mention of trying to sign up online but finding the process to be too complicated
• Are twice as likely to not trust their provider’s web site
• Worry over not having access to archived statements as well as a need to be in control over finances
What do you think?
During a luncheon presentation for journalists at its Payments conference in Seattle, NACHA shared some key takeaways from its PayItGreen Survey 2010:
Less paper equals less unhappiness!
• Respondents expressing lower levels of satisfaction with primary bank or credit union also report lower “electronic only” rates for key financial institution accounts
• This overall finding extends to billers as well
• Proportion of dissatisfied/neutral customers doubles as ‘electronic’ behavior decreases
In billing, minimalism is everything
• Focus on eliminating clutter, reducing paper waste and easy access to statements
For bill payment, expediency is the bottom-line
• Reduction of time and effort emerges as the primary driver
Don’t rule out the opt-out, because most consumers are OK with it
• 6 out of 10 respondents are open/neutral to billers/banks shutting off paper statements automatically
“Double-dipping” – when consumers receive a bill via paper and electronically – occurs more than twice as often with financial services accounts compared to other billers
Among various types of financial accounts, checking and card accounts leads in paperless while others lag farther behind
• Accounts such as investments, lending and insurance have lower rates of paperless
In general, financial services companies lag their non-financial services billers in getting customers to go paperless
• Some sectors such as utilities need particular attention (perhaps bankers can help their corporate clients!)
Providers can improve paperless behavior with particular site or product changes
• Make higher mention of trying to sign up online but finding the process to be too complicated
• Are twice as likely to not trust their provider’s web site
• Worry over not having access to archived statements as well as a need to be in control over finances
What do you think?
TAWPI @ NACHA Payments
Posted by Mark Brousseau
In 2010, Online Banking Solutions (OBS) predicts the following banking industry trends:
… Online banking and security will take center stage.
… Banks will begin to leverage additional delivery channels beyond the Web to create high-value solutions for their clients. This will begin with alerts and notifications, secure file transfers and the introduction of commercial mobile banking services.
… Companies will increase the number of file exchanges with banks in support of a full range of treasury services.
… Banks will begin to develop/acquire commercial entitlements and single sign-on (SSO) components to rationalize and improve the overall end-user experience.
What do you think?
In 2010, Online Banking Solutions (OBS) predicts the following banking industry trends:
… Online banking and security will take center stage.
… Banks will begin to leverage additional delivery channels beyond the Web to create high-value solutions for their clients. This will begin with alerts and notifications, secure file transfers and the introduction of commercial mobile banking services.
… Companies will increase the number of file exchanges with banks in support of a full range of treasury services.
… Banks will begin to develop/acquire commercial entitlements and single sign-on (SSO) components to rationalize and improve the overall end-user experience.
What do you think?
Saturday, January 30, 2010
The Cell Phone Security Threat
Posted by Mark Brousseau
The majority of large and medium businesses are failing to adequately protect themselves against the growing threat of mobile voice call interception; leaving them vulnerable to loss of sensitive and confidential corporate information. That's according to a new survey by ABI Research on behalf of Cellcrypt.
Businesses clearly recognize the threat of cell phone interception: three-quarters of the surveyed corporations have a security policy covering cell phone calling and four out of five IT professionals surveyed believe that cell phones are equally or more vulnerable to interception than email.
Yet, the research shows that while mobile phones and email are both used routinely to communicate confidential information – with 79 percent of organizations that discuss sensitive or confidential information over mobile doing so at least weekly and 51 percent daily – only 18 percent have explicit mobile voice call security solutions in place.
Research has shown that data loss can have a major impact on market capitalization, reducing it by as much as 5-10 percent, as well as resulting in lawsuits for senior executives, severely damaging their reputation.
The growing problem was highlighted in August, when German hackers announced a project to create a code table that cracks the encryption of GSM mobile calls, used in 80 percent of the world’s cell phone calls. This codebook is planned to be freely available within the next 6 months, and significantly lowers the bar for everyday hackers to crack GSM calls using only a high-end laptop.
One alarming fact emerging from the survey was that 55 percent of respondents in IT roles thought that their organisation had implemented mobile voice call encryption solutions but on further investigation only 18% had actually done so.
“Effective email security has become routine but our research shows most businesses do not apply anything like the same level of robust security to cell phone calls. Companies that do not respond are exposing themselves to attack,” said Stan Schatt Vice President and Practice Director, Healthcare and Security, ABI Research.
“Equally concerning is that a significant number of people who identified themselves as being responsible for cell phone voice call security incorrectly believe the organisations’ mobile calls have been protected when they have not. This perception that they are protected when in reality they are not suggests a serious hole in the information security of many businesses. It is important that companies take urgent steps to review their measures for countering this growing corporate risk area,” Schatt continued.
“In light of this summer’s news that a GSM cracking codebook will be made widely and freely available very soon – possibly before the New Year – and sub-$1000 interception equipment being available soon after, this lack of security is particularly worrying,” says Simon Bransfield-Garth, CEO of Cellcrypt.
“Businesses must plan now for the eventuality that their mobile voice calls will come under increasing attack within the next 6 months. A ‘policy of hope’ towards mobile phone security is not adequate, voice is another data service and should be afforded the same security considerations as email and other corporate communications,” continued Bransfield-Garth.
Security of mobile voice calls is not limited to interception of radio waves between a cell phone and a base station mast: interception risks occur at various segments along a call path which may involve multiple network operators in a variety of countries each having a different levels of security measures and risks.
Among the key findings of the survey:
... 75 percent of the businesses surveyed discuss sensitive or confidential information via cell phones and 81 percent do so via email
... Of that 75 percent, 79 percent of businesses do so at least weekly, 51 percent do so daily
... Of the businesses sampled, 82 percent have a high level of concern about the security of email and 69 percent about cell phone security
... 41 percent of the individuals surveyed think mobile phones are more vulnerable to interception than email and 39% think they are equally as vulnerable to interception as email
... 74 percent of businesses discuss financially sensitive information on cell phones and of those 77 percent believe that if this were intercepted it would have a major impact
... 55 percent of respondents thought that their organisation had implemented mobile voice call encryption solutions but on further investigation only 18 percent had actually done so
What do you think?
The majority of large and medium businesses are failing to adequately protect themselves against the growing threat of mobile voice call interception; leaving them vulnerable to loss of sensitive and confidential corporate information. That's according to a new survey by ABI Research on behalf of Cellcrypt.
Businesses clearly recognize the threat of cell phone interception: three-quarters of the surveyed corporations have a security policy covering cell phone calling and four out of five IT professionals surveyed believe that cell phones are equally or more vulnerable to interception than email.
Yet, the research shows that while mobile phones and email are both used routinely to communicate confidential information – with 79 percent of organizations that discuss sensitive or confidential information over mobile doing so at least weekly and 51 percent daily – only 18 percent have explicit mobile voice call security solutions in place.
Research has shown that data loss can have a major impact on market capitalization, reducing it by as much as 5-10 percent, as well as resulting in lawsuits for senior executives, severely damaging their reputation.
The growing problem was highlighted in August, when German hackers announced a project to create a code table that cracks the encryption of GSM mobile calls, used in 80 percent of the world’s cell phone calls. This codebook is planned to be freely available within the next 6 months, and significantly lowers the bar for everyday hackers to crack GSM calls using only a high-end laptop.
One alarming fact emerging from the survey was that 55 percent of respondents in IT roles thought that their organisation had implemented mobile voice call encryption solutions but on further investigation only 18% had actually done so.
“Effective email security has become routine but our research shows most businesses do not apply anything like the same level of robust security to cell phone calls. Companies that do not respond are exposing themselves to attack,” said Stan Schatt Vice President and Practice Director, Healthcare and Security, ABI Research.
“Equally concerning is that a significant number of people who identified themselves as being responsible for cell phone voice call security incorrectly believe the organisations’ mobile calls have been protected when they have not. This perception that they are protected when in reality they are not suggests a serious hole in the information security of many businesses. It is important that companies take urgent steps to review their measures for countering this growing corporate risk area,” Schatt continued.
“In light of this summer’s news that a GSM cracking codebook will be made widely and freely available very soon – possibly before the New Year – and sub-$1000 interception equipment being available soon after, this lack of security is particularly worrying,” says Simon Bransfield-Garth, CEO of Cellcrypt.
“Businesses must plan now for the eventuality that their mobile voice calls will come under increasing attack within the next 6 months. A ‘policy of hope’ towards mobile phone security is not adequate, voice is another data service and should be afforded the same security considerations as email and other corporate communications,” continued Bransfield-Garth.
Security of mobile voice calls is not limited to interception of radio waves between a cell phone and a base station mast: interception risks occur at various segments along a call path which may involve multiple network operators in a variety of countries each having a different levels of security measures and risks.
Among the key findings of the survey:
... 75 percent of the businesses surveyed discuss sensitive or confidential information via cell phones and 81 percent do so via email
... Of that 75 percent, 79 percent of businesses do so at least weekly, 51 percent do so daily
... Of the businesses sampled, 82 percent have a high level of concern about the security of email and 69 percent about cell phone security
... 41 percent of the individuals surveyed think mobile phones are more vulnerable to interception than email and 39% think they are equally as vulnerable to interception as email
... 74 percent of businesses discuss financially sensitive information on cell phones and of those 77 percent believe that if this were intercepted it would have a major impact
... 55 percent of respondents thought that their organisation had implemented mobile voice call encryption solutions but on further investigation only 18 percent had actually done so
What do you think?
Thursday, October 29, 2009
iPhone App for Car Payments
Posted by Mark Brousseau
Mercedes-Benz launched an iPhone application that allows customers to make a car payment, calculate the amount needed to pay off the loan, locate dealers and find customer service numbers. The Mercedes-Benz website describes it as the "coolest way to make a payment."
Some people might hear this news and think "we better do something with mobile", but Forrester Research recommends that companies use the POST (People Objective Strategy Technology) method to determine which technologies they deploy. The POST method starts with the P, understanding the People that the company serves and how they use their mobile devices. People fall into six major categories in terms of mobile phone usage. Nineteen percent (Inactives) do not own a mobile phone, 35 percent (Talkers) only use the voice features of their mobile phone and 13 percent (Communicators) use no data service other than text messaging. The next three categories use more features of their mobile phones; categories do overlap. 19 percent (Connectors) send or receive email on their mobile phones but use the mobile Internet less than weekly. Twenty percent (Entertainers) stream music or video and purchase music over their mobile phones. Twelve percent (SuperConnecteds) use the mobile Internet and log onto social networking sites from their mobile phones at least once a week.
Forrester Research says that after they understand the people they are serving, companies can then set their Objectives and determine what Strategy will accomplish their objectives. The final step is then to choose the technology that will enable the company to meet their strategy. The technology decision comes last in the process, not first, warns Forrester.
What do you think?
Mercedes-Benz launched an iPhone application that allows customers to make a car payment, calculate the amount needed to pay off the loan, locate dealers and find customer service numbers. The Mercedes-Benz website describes it as the "coolest way to make a payment."
Some people might hear this news and think "we better do something with mobile", but Forrester Research recommends that companies use the POST (People Objective Strategy Technology) method to determine which technologies they deploy. The POST method starts with the P, understanding the People that the company serves and how they use their mobile devices. People fall into six major categories in terms of mobile phone usage. Nineteen percent (Inactives) do not own a mobile phone, 35 percent (Talkers) only use the voice features of their mobile phone and 13 percent (Communicators) use no data service other than text messaging. The next three categories use more features of their mobile phones; categories do overlap. 19 percent (Connectors) send or receive email on their mobile phones but use the mobile Internet less than weekly. Twenty percent (Entertainers) stream music or video and purchase music over their mobile phones. Twelve percent (SuperConnecteds) use the mobile Internet and log onto social networking sites from their mobile phones at least once a week.
Forrester Research says that after they understand the people they are serving, companies can then set their Objectives and determine what Strategy will accomplish their objectives. The final step is then to choose the technology that will enable the company to meet their strategy. The technology decision comes last in the process, not first, warns Forrester.
What do you think?
Sunday, September 13, 2009
iPhone Users Doing Mobile Banking
Posted by Mark Brousseau
Mobile banking is quickly moving from a “techie” to mainstream capability that is changing how consumers manage their finances today, which in turn will change how consumers pay for goods in the future. That's according to a new report from Javelin Strategy & Research (www.javelinstrategy.com).
“Mobile banking is quickly moving from infancy to commonplace, which will help separate the winners from losers in banks’ ability to attract and keep technology-loving consumers,” said Mary Monahan, Research Director and Managing Partner. “Consumers are hungry for the ‘always-on’ and ‘real time’ ability to monitor and manage their money, and mobile banking serves that need better than any other.”
Among the findings of the report:
... Nearly half of mobile-phone owners currently have access to mobile banking today.
... By 2014, 45% of mobile-phone users will actually use mobile banking.
99 million U.S. adults will conduct mobile banking transactions at least once per year by 2014 – with 52% of mobile-phone users relying on smartphones.
... Mobile banking will rival online banking, with the former used as a “remote control” and the latter as a detailed form of control panel for more complex transactions.
... AT&T has the highest number of mobile bankers due to the iPhone’s influence, while Verizon Wireless has the lowest penetration for mobile bankers among the top tier U.S. wireless carriers.
“Mobile banking is quickly becoming an essential consumer capability,” said Mark Schwanhausser, Financial Services Channels Analyst. “Just as the iPod changed the music industry and their business models, our data shows that iPhone users are changing the banking industry by leading the way in monitoring and managing finances through mobile devices.”
What do you think? Post your comment below.
Mobile banking is quickly moving from a “techie” to mainstream capability that is changing how consumers manage their finances today, which in turn will change how consumers pay for goods in the future. That's according to a new report from Javelin Strategy & Research (www.javelinstrategy.com).
“Mobile banking is quickly moving from infancy to commonplace, which will help separate the winners from losers in banks’ ability to attract and keep technology-loving consumers,” said Mary Monahan, Research Director and Managing Partner. “Consumers are hungry for the ‘always-on’ and ‘real time’ ability to monitor and manage their money, and mobile banking serves that need better than any other.”
Among the findings of the report:
... Nearly half of mobile-phone owners currently have access to mobile banking today.
... By 2014, 45% of mobile-phone users will actually use mobile banking.
99 million U.S. adults will conduct mobile banking transactions at least once per year by 2014 – with 52% of mobile-phone users relying on smartphones.
... Mobile banking will rival online banking, with the former used as a “remote control” and the latter as a detailed form of control panel for more complex transactions.
... AT&T has the highest number of mobile bankers due to the iPhone’s influence, while Verizon Wireless has the lowest penetration for mobile bankers among the top tier U.S. wireless carriers.
“Mobile banking is quickly becoming an essential consumer capability,” said Mark Schwanhausser, Financial Services Channels Analyst. “Just as the iPod changed the music industry and their business models, our data shows that iPhone users are changing the banking industry by leading the way in monitoring and managing finances through mobile devices.”
What do you think? Post your comment below.
Saturday, June 6, 2009
Key Criteria for Mobile Solutions
By Mark Brousseau
A new white paper from Fiserv, Inc. says there are 10 key criteria for selecting a mobile financial services solution:
A new white paper from Fiserv, Inc. says there are 10 key criteria for selecting a mobile financial services solution:
- Flexible enrollment
- Ability to deliver banking services via SMS, WAP and downloadable applications from one provider
- Consolidated enterprise platform
- Adaptable and scalable solution
- Extended functionality
- Mobilizing and streamlining business processes
- Proven premium services
- An integrated platform that lowers the total cost of ownership and interfaces with core banking, online banking and electronic billing and payment systems
- Bank-centric
- Multiple deployment options
What do you think? Post your comments below.
Smartphones and Mobile Banking
By Mark Brousseau
Smartphones will have a tremendous impact on mobile banking, Alain DeSouza, senior manager, Market Development, Solutions Marketing, at Blackberry, told attendees at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas yesterday.
DeSouza noted that, depending on the analyst numbers you believe, smartphones represent 20 to 26 percent of the mobile phones in the United States, and 12 to 14 percent of the mobile phones globally. When you consider that 4 billion people worldwide have mobile phones (with 1.3 billion mobile phones purchased annually) there is a lot of opportunity for smartphone mobile banking applications.
“Mobile banking will be one of the top seven applications people will have,” DeSouza said. He predicts the mass market adoption of mobile banking applications and that more companies will leverage mobile applications in general as a means of entering and exploiting new demographic segments.
And while iPhone has been getting a lot of the smartphone buzz, “the gorilla in the smartphone industry globally is Nokia, even though Blackberry leads the U.S. market,” DeSouza said.
What do you think? Post your comments below.
Smartphones will have a tremendous impact on mobile banking, Alain DeSouza, senior manager, Market Development, Solutions Marketing, at Blackberry, told attendees at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas yesterday.
DeSouza noted that, depending on the analyst numbers you believe, smartphones represent 20 to 26 percent of the mobile phones in the United States, and 12 to 14 percent of the mobile phones globally. When you consider that 4 billion people worldwide have mobile phones (with 1.3 billion mobile phones purchased annually) there is a lot of opportunity for smartphone mobile banking applications.
“Mobile banking will be one of the top seven applications people will have,” DeSouza said. He predicts the mass market adoption of mobile banking applications and that more companies will leverage mobile applications in general as a means of entering and exploiting new demographic segments.
And while iPhone has been getting a lot of the smartphone buzz, “the gorilla in the smartphone industry globally is Nokia, even though Blackberry leads the U.S. market,” DeSouza said.
What do you think? Post your comments below.
Friday, June 5, 2009
Cardholders Going Mobile
By Mark Brousseau
Below are some insights on mobile banking from the Third Annual Mobile Commerce Summit this week at The M Resort in Las Vegas.
… Cardholders have become increasingly more comfortable moving account information via the mobile channel, Kevin Morrisson, assistant vice president, Card Products, H&R Block, told attendees.
… Within six months of launch, financial institutions average 1.5 to 2 percent of their Internet users accessing mobile banking, Scott Moeller, chief executive officer, MShift, Inc. said during a breakfast briefing.
… Huntington Bank surveyed its mobile banking customers and found that 65 percent of them were likely to use mobile banking in the future, Ellen Johnson of Huntington Bank told attendees. Most importantly, 48 percent of respondents were very likely to recommend Huntington to another person because of the bank’s mobile banking offering.
… Huntington Bank’s mobile banking customers are 38 percent more profitable than the rest of the bank’s customer base, Johnson told attendees.
… Mobile phones are the preferred channel for global remittance because of their prevalence, speed and accessibility, T. Jack Williams, CEO, eCommlink, told attendees. “As an industry we need to focus on the ‘last mile’ of global remittance to truly open up the opportunity,” Williams said.
… When you look for a processor for your mobile payments initiative, select a partner committed to mobile for the long run, Williams told attendees. The processor needs to be able to support mobile traffic (short code support), must be compliant with SAS 70 and PCI, and must have an API library for a variety of mobile functions.
… Merchant agenda will need to be addressed by mobile payments or they will never adopt it, Williams said.
… More than 40 percent of mobile banking users are not online banking users, finds Aspen Marketing Services. This means that a mobile marketing initiative that largely focuses on online banking users (a common approach) will potentially ignore more than half of a bank’s customer base.
What do you think? Post your comments below.
Below are some insights on mobile banking from the Third Annual Mobile Commerce Summit this week at The M Resort in Las Vegas.
… Cardholders have become increasingly more comfortable moving account information via the mobile channel, Kevin Morrisson, assistant vice president, Card Products, H&R Block, told attendees.
… Within six months of launch, financial institutions average 1.5 to 2 percent of their Internet users accessing mobile banking, Scott Moeller, chief executive officer, MShift, Inc. said during a breakfast briefing.
… Huntington Bank surveyed its mobile banking customers and found that 65 percent of them were likely to use mobile banking in the future, Ellen Johnson of Huntington Bank told attendees. Most importantly, 48 percent of respondents were very likely to recommend Huntington to another person because of the bank’s mobile banking offering.
… Huntington Bank’s mobile banking customers are 38 percent more profitable than the rest of the bank’s customer base, Johnson told attendees.
… Mobile phones are the preferred channel for global remittance because of their prevalence, speed and accessibility, T. Jack Williams, CEO, eCommlink, told attendees. “As an industry we need to focus on the ‘last mile’ of global remittance to truly open up the opportunity,” Williams said.
… When you look for a processor for your mobile payments initiative, select a partner committed to mobile for the long run, Williams told attendees. The processor needs to be able to support mobile traffic (short code support), must be compliant with SAS 70 and PCI, and must have an API library for a variety of mobile functions.
… Merchant agenda will need to be addressed by mobile payments or they will never adopt it, Williams said.
… More than 40 percent of mobile banking users are not online banking users, finds Aspen Marketing Services. This means that a mobile marketing initiative that largely focuses on online banking users (a common approach) will potentially ignore more than half of a bank’s customer base.
What do you think? Post your comments below.
Security Stymies Mobile Banking
By Mark Brousseau
Security fears are the single biggest factor inhibiting mass consumer uptake of mobile banking, Tom Wills, senior analyst, Security, Fraud and Compliance at Javelin Strategy & Research, said yesterday at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas.
When it comes to mobile banking, 47 percent of consumers surveyed by Javelin Strategy & Research cited security as the thing they are most concerned about, Wills said. “No other category comes close.” Additionally, 73 percent of consumers are concerned that hackers will get access to their mobile phone.
But many consumer fears about mobile banking security are misplaced, Wills said. “There is lots of misinformation and misperception,” he told the audience of 98. “For instance, there is a perception that there is a lot of malware in the mobile banking channel. That’s not true. But it doesn’t matter that a consumer is wrong; if they are concerned, it’s lost revenue for banks.”
Wills added that, “The mobile channel is one of the safest around, if good security is implemented. It has some innate security safeguards.”
Those comments notwithstanding, banks need to be prepared to deal with fraud in mobile banking, Clint Heyworth, attorney, Consumer Finance Group, Chambliss, Bahner & Stophel told attendees.
“Mobile payments are going to happen. That is a given,” Heyworth said. “Fraud is also going to happen. That also is a given. Stealing is not a new concept. Mobile banking is just a new forum for theft and fraud. Companies need to decide how to stop it.”
So, why haven’t we heard more about instances of mobile banking fraud? “Not enough people are using it, and there isn’t enough money going through it,” Eric Kraar, senior architect, Firethorn, told attendees.
Kraar noted that the myriad operating systems in mobile banking strengthens security for the channel because it “makes it harder to get at a lot of people with one attack.” Conversely, it also means that vendors can’t focus their security efforts in any one area. “We can’t come up with one solution that fits everything,” Kraar said.
What do you think? Post your comments below.
Security fears are the single biggest factor inhibiting mass consumer uptake of mobile banking, Tom Wills, senior analyst, Security, Fraud and Compliance at Javelin Strategy & Research, said yesterday at the Third Annual Mobile Commerce Summit at The M Resort in Las Vegas.
When it comes to mobile banking, 47 percent of consumers surveyed by Javelin Strategy & Research cited security as the thing they are most concerned about, Wills said. “No other category comes close.” Additionally, 73 percent of consumers are concerned that hackers will get access to their mobile phone.
But many consumer fears about mobile banking security are misplaced, Wills said. “There is lots of misinformation and misperception,” he told the audience of 98. “For instance, there is a perception that there is a lot of malware in the mobile banking channel. That’s not true. But it doesn’t matter that a consumer is wrong; if they are concerned, it’s lost revenue for banks.”
Wills added that, “The mobile channel is one of the safest around, if good security is implemented. It has some innate security safeguards.”
Those comments notwithstanding, banks need to be prepared to deal with fraud in mobile banking, Clint Heyworth, attorney, Consumer Finance Group, Chambliss, Bahner & Stophel told attendees.
“Mobile payments are going to happen. That is a given,” Heyworth said. “Fraud is also going to happen. That also is a given. Stealing is not a new concept. Mobile banking is just a new forum for theft and fraud. Companies need to decide how to stop it.”
So, why haven’t we heard more about instances of mobile banking fraud? “Not enough people are using it, and there isn’t enough money going through it,” Eric Kraar, senior architect, Firethorn, told attendees.
Kraar noted that the myriad operating systems in mobile banking strengthens security for the channel because it “makes it harder to get at a lot of people with one attack.” Conversely, it also means that vendors can’t focus their security efforts in any one area. “We can’t come up with one solution that fits everything,” Kraar said.
What do you think? Post your comments below.
Wednesday, June 3, 2009
Mobile Commerce Trends
By Mark Brousseau
Some interesting facts from the pre-conference workshop at the Third Annual Mobile Commerce Summit at the M Resort Casino & Spa in Las Vegas on Wednesday:
… Banks that think they are going to fund their mobile initiatives through advertising had better think again, according to Bob Gilbreath, chief marketing strategist, Bridge Worldwide, an interactive and relationship marketing agency. “Mobile ad interruption will not be tolerated,” Gilbreath said, noting that 72 percent of Americans have registered on the Federal Do Not Call list. What’s more, service providers fear losing $50 per month customers in exchange for pennies per ad unit, he said.
… Smartphone users spend less than 5 minutes online per session, Gilbreath said.
… People who write down how they will use a new product are 50 percent more like to use it, according to a study by Proctor and Gamble.
… Young consumers are spending less time in traditional “online” environments, Gilbreath said.
… The Berg Institute says there were 3.1 million mobile banking households in the United States last year – up from 400,000 households in 2007. The Berg Institute estimates there will be 7 million mobile banking households by the end of 2009.
… 50 percent of all calls to bank customer service centers are from mobile phones, and will rise to 70 percent in 2010, according to Celent. Many calls are simple balance requests, Celent notes.
… As of January, 2009, Bank of America had 1.9 million mobile banking users – up from 1 million users in June, 2008. On peak days, Bank of America has 100,000 mobile banking users.
… Only 40 percent of a retail bank’s customers are profitable, finds the Council on Financial Competition.
What do you think? Post your comments below.
Some interesting facts from the pre-conference workshop at the Third Annual Mobile Commerce Summit at the M Resort Casino & Spa in Las Vegas on Wednesday:
… Banks that think they are going to fund their mobile initiatives through advertising had better think again, according to Bob Gilbreath, chief marketing strategist, Bridge Worldwide, an interactive and relationship marketing agency. “Mobile ad interruption will not be tolerated,” Gilbreath said, noting that 72 percent of Americans have registered on the Federal Do Not Call list. What’s more, service providers fear losing $50 per month customers in exchange for pennies per ad unit, he said.
… Smartphone users spend less than 5 minutes online per session, Gilbreath said.
… People who write down how they will use a new product are 50 percent more like to use it, according to a study by Proctor and Gamble.
… Young consumers are spending less time in traditional “online” environments, Gilbreath said.
… The Berg Institute says there were 3.1 million mobile banking households in the United States last year – up from 400,000 households in 2007. The Berg Institute estimates there will be 7 million mobile banking households by the end of 2009.
… 50 percent of all calls to bank customer service centers are from mobile phones, and will rise to 70 percent in 2010, according to Celent. Many calls are simple balance requests, Celent notes.
… As of January, 2009, Bank of America had 1.9 million mobile banking users – up from 1 million users in June, 2008. On peak days, Bank of America has 100,000 mobile banking users.
… Only 40 percent of a retail bank’s customers are profitable, finds the Council on Financial Competition.
What do you think? Post your comments below.
Friday, March 6, 2009
The Future of Payments
By Mark Brousseau
When NCR Corp. considers the future of payments, it envisions the evolution of multi-channel payments optimization, Stephen Reade, vice president and general manager of global software and technology services, told attendees of TAWPI’s Payments Automation Conference this week in Ft. Lauderdale, FL.
“Ultimately, our goal is to enable faster, easier customer interactions, across multiple channels. Many financial institutions consider this business process optimization,” Reade said during a keynote presentation. To enable these multi-channel opportunities, financial institutions will have to enhance their operations infrastructure. But the effort can pay big dividends, Reade said.
“Multi-channel consumers spend more, and they spend more consistently,” he said. “Our clients are starting to recognize this.” Reade pointed to an Aberdeen Group study that found 38.3 percent of multi-channel consumers are significantly more profitable than single-channel consumers. “They’ll spend more on a single transaction,” Reade said, “and they’ll use multiple payment types.”
The broadening mix of payments channels also is forcing financial institutions to address multi-channel optimization. “Once a financial institution begins to establish a relationship with a customer via a particular channel, it’s almost impossible to turn it off,” Reade said, noting that despite the growth of mobile banking, financial institutions are still seeing strong interest in ATM-based channels.
“Consumers will always assume and expect self-service,” Reade said.
What do you think? Post your comments below.
When NCR Corp. considers the future of payments, it envisions the evolution of multi-channel payments optimization, Stephen Reade, vice president and general manager of global software and technology services, told attendees of TAWPI’s Payments Automation Conference this week in Ft. Lauderdale, FL.
“Ultimately, our goal is to enable faster, easier customer interactions, across multiple channels. Many financial institutions consider this business process optimization,” Reade said during a keynote presentation. To enable these multi-channel opportunities, financial institutions will have to enhance their operations infrastructure. But the effort can pay big dividends, Reade said.
“Multi-channel consumers spend more, and they spend more consistently,” he said. “Our clients are starting to recognize this.” Reade pointed to an Aberdeen Group study that found 38.3 percent of multi-channel consumers are significantly more profitable than single-channel consumers. “They’ll spend more on a single transaction,” Reade said, “and they’ll use multiple payment types.”
The broadening mix of payments channels also is forcing financial institutions to address multi-channel optimization. “Once a financial institution begins to establish a relationship with a customer via a particular channel, it’s almost impossible to turn it off,” Reade said, noting that despite the growth of mobile banking, financial institutions are still seeing strong interest in ATM-based channels.
“Consumers will always assume and expect self-service,” Reade said.
What do you think? Post your comments below.
Wednesday, February 4, 2009
Phones As Credit Cards?
Posted by Mark Brousseau
An interesting article from the New York Times on using phones as credit cards.
"Phones as Credit Cards? Americans Must Wait"
By Berlin, Leslie
New York Times (01/25/09) P. 4
Cell phone-based payment transactions are widely used in Japan, but the technology's adoption in the United States faces a number of hurdles. The various companies playing a role in the technology's rollout have yet to define standards and agree on a revenue-sharing model.
Also required is a mediator that both the financial institutions and the carriers can trust to activate the virtual credit cards inside the handhelds.
For retailers, the adoption of mobile-phone payments means a faster checkout process, while credit card companies would gain a new tool for attracting and retaining customers as well as save money otherwise spent mailing cards.
Equipping cell phones with virtual credit cards is a source of worry for some, given the propensity for phones to get lost or stolen. However, MasterCard Worldwide's Simon Pugh says one solution is for the consumer to call the bank to report the phone's loss and disable the account.
University of Massachusetts professor Kevin Fu is less concerned about the risk of account fraud from mobile payments than he is about privacy infringement. However, he is optimistic that in time virtual credit cards "will become one of the best ways to do mobile payments."
An interesting article from the New York Times on using phones as credit cards.
"Phones as Credit Cards? Americans Must Wait"
By Berlin, Leslie
New York Times (01/25/09) P. 4
Cell phone-based payment transactions are widely used in Japan, but the technology's adoption in the United States faces a number of hurdles. The various companies playing a role in the technology's rollout have yet to define standards and agree on a revenue-sharing model.
Also required is a mediator that both the financial institutions and the carriers can trust to activate the virtual credit cards inside the handhelds.
For retailers, the adoption of mobile-phone payments means a faster checkout process, while credit card companies would gain a new tool for attracting and retaining customers as well as save money otherwise spent mailing cards.
Equipping cell phones with virtual credit cards is a source of worry for some, given the propensity for phones to get lost or stolen. However, MasterCard Worldwide's Simon Pugh says one solution is for the consumer to call the bank to report the phone's loss and disable the account.
University of Massachusetts professor Kevin Fu is less concerned about the risk of account fraud from mobile payments than he is about privacy infringement. However, he is optimistic that in time virtual credit cards "will become one of the best ways to do mobile payments."
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