Mobile Payment Magazine

USAID Grants Aim to Help Create Mobile Banking System in Afghanistan

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“In 2002, fewer than 200,000 people in Afghanistan had access to telephones. Today, some 15 million Afghans use mobile phones and a full 85 percent of the population lives within the combined network coverage of the four major telecommunications companies. This technological leap connects Afghans to each other and to the economy in ways that were unimaginable just a few years ago,” the Administrator of the United States Agency for International Development (USAID) Rajiv Shah said recently in Kabul when announcing three USAID grants for further technological innovations, totaling more than $2 million.

The wide availability of mobile phones opens up possibilities for finding new solutions to challenges that Afghans face every day. These three USAID grants aim to help create a mobile banking system that all Afghans could use.

The Afghan Education Minister recently highlighted the urgent need for mobile payments when a staff member of the Education Ministry was killed while transporting cash in northern Afghanistan to pay teachers. In fact, thousands of Afghan teachers had to wait months to get paid due to the difficulties and dangers of transporting money. “I am delighted that USAID is able to help seed a partnership between the Afghan Education Ministry and a mobile phone operator to begin paying teachers . . . thus ensuring that they get paid in time, and more importantly, that no Education Ministry employee loses his life for a duffle bag of cash,” Administrator Rajiv Shah said.

The second grant is designed to connect the new Afghan electricity utility with mobile phone billing and payment for electricity service. “Delivering electricity to all Afghans will require a revenue model that will sustain operations, motivate more public and private investment, and expand Afghanistan’s energy grid so that fewer communities live in the dark,” Administrator Rajiv Shah said.

The third grant funds a partnership of another telecommunications company with a micro finance consortium whose clients are predominantly women. “Running loan extensions and repayments over mobile phones significantly reduces the need for loan officers and clients to travel. This cost savings can be passed on to the customers, making credit more affordable,” Administrator Rajiv Shah concluded. “I am proud that United States Agency for International Development is able to help unleash Afghan innovation.”

Source: VOA News

Self Service Customer Service via Mobile

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Brian Day, product development architect for The Members Group (TMG) says it’s time for financial institutions to rethink they way they service customers – understanding that today’s consumer increasingly values self service over traditional customer service.

This shift in customer preference, Day says, has elevated the importance of products like mobile banking for community-based financial institutions.“Making time for chit-chat is not a priority for Generation Y, nor even Gen X and their parents, the Boomers,” writes Day in a recent white paper, entitled “Self Service as Customer Service.” “We are a busy, mobile society, and we expect our financial institutions to stay in stride.” Aside from consumer banking preferences, Day explores the top five mobile banking activities, as well as what he calls the “mobile banking triple play.”

The triple play refers to the three methods of accessing mobile banking – namely text, browser and application. Day also provides an analysis of the benefits mobile banking provides financial institutions, sharing customer service cost figures on a per-engagement level.

Read more: “Self Service as Customer Service” white paper.

Source: TMG

Smartphone Banking Security: mBanking Susceptible to Consumer Fears

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According to Research and Markets, mobile banking adoption has stagnated despite explosive growth in smartphone adoption from 2009 to 2011, and the company attributes the slowdown to consumer fears over mobile banking security.

In 2009, one in four smartphone owners considered mobile banking unsafe. One year later, 40% of smartphone owners felt the same way. As financial institutions push forward, offering innovative and convenient financial options to a new mobile generation, consumers are left questioning whether security was sacrificed in the rush toward innovation.

In the context of the recent infiltration of malware into the Android Market, the company notes that it is imperative that FIs reassure consumers that mobile security is a priority.

Research and Markets  has announced the release of a new  Javelin Strategy & Research report entitled “Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears.”

Primary questions covered:

  • What is the rate of smartphone adoption?
  • What is the growth rate of mobile banking and purchasing?
  • What are some factors that are inhibiting the adoption of mobile financial activities?
  • How can FIs encourage mobile financial activity?

Companies Mentioned:

  • Apple
  • Bank of America
  • BB&T Bank
  • Chase
  • Citibank
  • Citizens
  • Fifth Third Bank
  • Google
  • HSBC
  • IBM
  • Key Bank
  • Microsoft
  • PNC
  • Regions
  • RIM
  • SunTrust
  • TD Bank
  • US Bank
  • USAA
  • Wachovia
  • Wells Fargo

More information: Smartphone Banking Security: Mobile Banking Utilization Stalls On Consumer Fears

 

Source: Business Wire

Mobile Banking and Payments Report: The Role of the Mobile Phone as a Banking Device

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With over 2 billion users worldwide, mobile phone usage penetrates every core demographic of the world’s population. Research and Markets has announced the release of a new report entitled “ Mobile Banking and Payments.” The report assesses the role of the mobile phone as a banking device as well as a payment function. The report provides readers with the ability to:

  • Assess the prospects for mobile banking and payments
  • Learn how additional revenue can be raised through value added services
  • Review the strategic and operational issues that face the mobile banking sector
  • Study the profiles of leading banks within the mobile banking arena

After abandoning initial roll-outs a few years ago following poor consumer take up, banks worldwide are now re-entering the market. Mobile banking is an opportunity and a threat to established retail financial players. The first section of this report provides the business case for successful mobile banking. It presents the short-term solutions and the longer-term strategy needed to create a successful program.

Key Points Addressed in This Report:

  • The mobile banking phenomenon explained.
  • Trends among emerging and developed markets.
  • Mobile banking and mobile payments defined.
  • Reasons for low adoption by banking customers.
  • Importance of mobile as a marketing tool and as a customer retention strategy.
  • Negotiating the relationship between banks and mobile carriers.

Case Studies and Examples Include:

  • Bank of America
  • Blaze
  • Charles Schwab
  • Citi
  • ClairMail
  • Co-op Bank
  • Elite mBanking
  • Facebook
  • Fi-Mobile
  • First National Bank
  • iTunes
  • Mfoundry
  • Microsoft
  • Mshift
  • MTN bank
  • Nokia
  • Paypal
  • Regalo Card
  • St George Mobile Banking
  • Sun mBanking
  • Twitter
  • Vancity CU
  • Visa
  • Wells Fargo
  • Wizzit bank

Key Topics Covered:

  • Business case for mobile banking
  • Business case for mobile banking
  • Generate revenue through value added services
  • Enhance other delivery channels
  • Marketing via the mobile channel
  • Banking the unbanked
  • Strategic and operational issues
  • Choosing the technology platform
  • Security considerations
  • Usability considerations
  • Marketing considerations
  • Market profiles
  • USA
  • South Africa
  • Key emerging markets

More information: Research and Markets – “Mobile Banking and Payments Report”

 

Source: Business Wire

BNP Paribas and Orange Partner to Launch First Entirely Mobile Bank

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BNP Paribas and Orange have formed a partnership and signed a trademark licence agreement to launch innovative mobile banking services in November 2011.

This strategic business partnership allows the groups to share expertise in their respective areas of excellence. It brings together the world of information and communication technologies and the world of banking.

Starting in November, BNP Paribas customer advisors will be able to offer mobile banking services – unique in France – in all 2,250 branches (also available through Internet banking). Customers will be able to access the most innovative m-banking and m-payment services to manage their accounts and make payments using their mobile phones. The aim is to equip thousands of BNP Paribas customers with smartphones over a three-year period to combine the very best mobile services and banking services.

Innovation is a key factor of differentiation for the banking industry. As part of its Internet and Mobile acceleration programme, BNP Paribas was the first bank to be on the iPad in May 2010. It also created ‘La Net Agence’ – the first completely on line branch, which now has over 12,000 customers. 2 Opéra, the BNP Paribas Concept Store, opened its doors in December 2010 and each month over 300,000 customers do their banking using their mobile phones. BNP Paribas was one of the first banks to offer contactless mobile payments services in Nice in June 2010 and has further invested in order to extend this pilot to other large French cities.

Orange wants to combine partner services, which in addition to their specific benefits are from well known and recognised brand, with it mobile telephone offers. This partnership is in line with Orange’s ambition to develop new innovative services. The launch of the Citzy Pass in the spring of 2010 in Nice to develop new near field communication technologies (NFC) is also part of this approach.

When signing this partnership deal on 25 July, François Villeroy de Galhau, Head of Retail Banking in France, said: “Thanks to this partnership we are promoting new uses and we are creating a new way of managing bank transactions. Orange’s expertise means that we can offer all our customers mobile banking and as a result of this inclusive and innovative offer, BNP Paribas has now become the first mobile bank in France”.

“For Orange, this partnership is an opportunity to explore new territories and to continue offering our customers more and more innovative services. It relies on Orange’s and BNP Paribas’ expertise to propose the best of both our worlds” explained Delphine Ernotte, Executive Vice President of Orange France.

via News – BNP Paribas and Orange partner to launch the first entirely mobile bank… | BNP Paribas Bank.

Gartner Casts a Shadow on Mobile Banking in Australia

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Gartner’s senior analyst for the financial sector has cast doubts on whether Australian banks should invest heavily in mobile banking applications and near field communication (NFC) payment systems, as Australian banks have struggled to profit from mobile banking applications, with the majority of customers using the app’s to check account balances rather than making genuine transactions.

Banking executives have raised similar concerns, questioning whether mobile banking applications offered enough real estate to serve as a portal for directing customers to more profitable banking services.

Read more, via iTnews.com.au.

Many Mobile Banking App’s Not Secure, Says viaForensics

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On the heels of the news of PayPal’s vulnerable iPhone application, The Wall Street Journal broke news of additional vulnerabilities in other major financial institutions’ smart phone applications. These security flaws were uncovered by computer and mobile forensics firm, viaForensics, who tested smart phone applications from Bank Of America, Chase, TD Ameritrade, USAA, Wells Fargo and Vanguard, in addition to PayPal.

viaForensics has been communicating and coordinating with the financial institutions to address the flaws. Most of the institutions were able to quickly resolve the issues and release new versions of their applications.

According to American Banker 25% of the mobile banking programs analyzed received a poor rating: ” In most cases, these failures occurred because testers were able to recover a user password or other sensitive user data from a user’s mobile device. In some cases, the apps cached a security PIN or a user name and password. In other instances testers were able to recover payment history, partial credit card numbers and other transaction-related data. About a third (31%) of mobile banking apps received a “Warn” grade because a user name or app data was present, but not considered a significant risk to the user. The remaining 44% of mobile banking apps passed the test.”

viaForensics has retested the applications and released the results through appWatchdog, a free service which tests publicly available mobile applications for insecure transmissions or storage of sensitive user data. The service measures such factors as how securely the app handles user names and passwords. If not handled properly, security lapses can place the user at risk for data and financial theft. A deeper audit is offered through appSecure, which provides sophisticated security testing and recommendations for securing the app.

Sources: viaForensics, American Banker