Mobile banking is an interesting example of a product that is far easier to launch in markets where phone penetration is higher than bank account penetration (i.e emerging markets), because banks will benefit from operator alliances – they will be able to increase their deposit base into the often huge (50%+) non-banked population.
In developed countries, why should the banks open up the value chain to operators when all they can see is lost revenue? (another player taking a slice of the small transaction fees). Eventually, the mobile phone will have to become a ‘credit card’ in my view, because convenience and consumer demand will make it happen, but it’ll take a lot longer than it has in places like the Philippines and Tanzania:
http://www.vodacom.co.tz/docs/docredir.asp?docid=3492
In ‘developed world’ countries we have seen countless innovations in the ‘mobile money’ arena – and some I find interesting are:
http://www.zong.com/zong/products.gsp
..which focuses on alliances between eg gaming companies and operators to drive transactions. Its not ‘real money’ in that it is effectively credit in a specific environment, but its a step on the way.
I think one of the drivers of innovation in this space could be the emergence of mobile as a remmittance enabler/platform, where credit is stored, transported and accessed via the mobile phone.
In one example of this, Belgacom is apparently talking to operators provide cross-border cash remmittance. Belgacom’s position as a carrier hub is a great advantage as they already bill and collect across many operators, but this method still relies on a ‘cash-in – cash-out’ at the local operator level – akin to what Smart provides in the Philippines via retail partners (e.g fast food chains). Until this happens at both ends of the remmittance corridor we will still be waiting for real ‘mobile remmittance’.
