It’s the mobile phone that has really managed to make our life easier. These days, the use of mobile phone is not just restricted to the work like calling others and getting connected with them. The use of mobile phone has really opened up several opportunities for people to find a much easier and hassle free life. The best part is that mobile payments as well as mobile banking like activities have become common across the globe. This is what helping people to complete their monetary transactions online while on the go. This has created a new market for sure. Even the old players now need to become more agile and nimble in order to adapt this market. It’s the power of mobile banking that has really made our life look easier. This is surely benefiting the retail financial world to a great extent. And the time has come to know the tips that can help startups to reap more benefit through mobile banking and mobile payments.
These days, consumers have become more tech savvy. They are seriously looking for an enhanced personal-customer experience. Well, it’s the mobile service that can offer them a tailor made and personalized experience in a better way than the other technological inventions. It’s the mobile internet that has managed to create a community that is packed with the empowered consumers. Experts have even mentioned that mobile phone can become a real power to drive profit for large to small businesses across the globe. There are twelve tips prepared for the startups to reap maximum advantage from the mobile banking and payment world.
First you need to understand more about mobile phenomenon:
As per the present condition, mobile subscriptions and mobile broadband have really outnumbered the fixed lines as well as fixed broadband. However, the internet strategy should n’t be mingled with the mobile strategy. Both these are different entities and need different approaches as well. This is also going to come up with a largest economic revolution further.
Mobile phenomenon is not just based on the technological aspect. It also counts on the sociological and psychological phenomenon. It’s the old approach for touch and smell is now replaced by the See and Hear like approach. If you want to do something, then you are not necessarily need to move for a place and the mobile shopping world has made it really easier. Mobile phones have managed to transform each and every phase of the traditional shopping. It has also opened up several channels for the transaction services.
Map disrupters and incumbents:
Banks and the credit card, e-retailers and retailers like service providers are now looking forward to take advantage of the mobile payment system. Tech service providers have also come up with the MS Money and Quicken like systems. Telco has announced some mobile payment methods like m-pesa, Smart Money and Project Oscar. There are also companies like Amazon, eBay and Apple that operate like a virtual bank. The good news is that almost every day a new app for mobile payment is announced by the startups. In this regard Moven, PayPal, and Simple & Green Dot are the players that you must watch!
Ride as well as generate an e-commerce wave:
It’s the growth for e-commerce that has really managed to come up with great potentials for the new. They also offer great profits for the consumers. Many genuine companies are also coming to this business now while creating the products such as mobile wallets which can be used even for your small routine purchases. This type of platform can also be used for money transfer, merchandise purchase, travel ticketing, as well as parking. Mobile phones have also extended the reach for the credit and debit cards. This has also opened up the new great ways for the p2p payments as well as collective purchases. These days, cheques and cash usages have become less prevalent.
Mobile for the emerging market:
In few countries like China, India, Philippines and Kenya, most of the powerful innovations for mobile services use to happen. These are the emerging economies as well. By the year 2018, more than forty to fifty percent of the mobiles used in Africa will get the access for the internet. In these rising economies, there are near about 2.5 million people who don’t even have financial accounts. This is mentioned by World Bank. One-fifth of the adults in US are under banked or unbanked. As far as mobile phones are concerned, these devices allow people to take maximum advantage of mobile banking and payment method and this is supplied to customers who are located at the Bottom of the Pyramid. There are also sampling techniques followed in order to make home visits as well as mobile technology look simpler. Due to this reason, loans as well as donations are now offered to more people.
Opportunity for the youth:
There are services and products designed for the digital natives. In this regard, youth can also be termed as Generation M. it is the generation that grew up along with the tablets and mobile phones. It is also called as Generation Multitasking. The comfort level as well as the purchasing behaviors is also naturally tuned for mobile era. They also prefer to use the apps in order to take advantage of services and transaction.
Open up the app store:
Apps designed for the mobile banking and payment should just not offer information! These apps should offer a genuine and safe platform for transactions. Players in this business are going to compete on the basis of usability, quality, speed, convenience, security, and appearance related to their apps. Apps should be customer centric and must have pain points that can address customer’s needs and offer them maximum conveniences. These apps can be used for determine more things about the social habits of the customers. Open APIs have really managed to speed up for the process for innovation while creating the LEGO mode that is greatly used by the services and software developers.
Market for prepaid card:
Despite the heavy use of mobile banking, you should n’t ignore the benefit and power of using the prepaid cards. These cards are accepted and used worldwide. For the market penetration both the open and close loop prepaid cards can appear as the handy options. These cards can produce great help for the financial inclusions. Money Gram, Net Spend and Account Now are the key players to watch in this business.
Learning from the mobile disruptions happening for other sectors:
Healthcare is the sector that offers beneficial lessons for people through the use of mobile phones. It’s the mobile phone which is now used as the right platform to deliver trackable measures, healthy practices and education through different apps. This platform is also used to take the level up for the healthcare sector. There are also wearable devices coming to the market and help in reinventing life sciences and health care practices.
Managing risks is important:
Surely, mobile banking offers several opportunities but this can also come up with several risks. Fraud, phishing, pharming, identity theft, integration challenges, malware attacks, key logging, etc are the common risks and challenges you have to negotiate with while announced the apps for mobile banking. It’s the trade off among conveniences and security that needs to be matched and balanced.
Transformation of the banks:
The banking leaders have to overcome their conservative mindset. They need to adopt the new technology to convert the convention retail branch of the banks into more streamlined systems that can take advantage of mobile services. The prime challenge for the banks now a day is to run their regular operations with the new innovations occurring for the mobile phones. This can offer their customers a great and engaging experience for 24×7. This also includes the addition of relevant marketing while taking help of the Big Data. As far as mobile is concerned, it has already assigned the wakeup call for the banks to depend more on the innovation as well as to depend less on the pricing tricks as well as hidden charges.
You should keep a keen eye for the future:
In the coming years, you can see that mobile opportunities are not just going to be availed with the mobile phone or the tablets. It will also be availed through the internet like thing a lot. There will be new devices like mobile-enabled watches, appliances, clothes, and vehicles announced for the market. For just any smart business, mobile is considered as the most lucrative opportunity to enhance the business periphery. It’s the mobile that is considered as a new normal. It also helps in the creation of elements like freedom, empowerment and opportunity.