In the complex
and fast-evolving world of mobile payments, it can be hard for
vendors to differentiate themselves from competitors vying to get a
slice of the lucrative market.
From a bank’s perspective, the
biggest challenges are meeting customer requirements and figuring
out whether to build relevant software in-house or turn to a vendor
to capture customer satisfaction when demands and attitudes are
still evolving. In the latter case, another challenge for banks
face is finding the right vendor.
Go deeper with GlobalData
The Global Bank Technology
Trends 2011 report by Aite Group found that 46% of banks
prefer buying banking technology software from vendors – while less
than a fifth prefer building it in-house 28% of banks deploy
software from vendors for m-banking; but 39% of consumers are “not
satisfied” with the m-banking service.
Considering that global smart phone
adoption is forecast to grow to 977m users worldwide by 2013,
m-banking is a vital channel for banks to enhance propositions.
According to Marco Casartelli, CEO
and co-founder of Vipera, a provider of mobile financial services
platforms with significant contracts in the Middle East,
telecommunication network providers (telcos) and phone
manufacturers will be key partners for banks.
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By GlobalDataConsumers are on the
learning curve
Casartelli told RBI the
transactional aspect of mobile banking had not taken off despite
the extensive penetration of mobile phones in consumers’ lives
“because of the lack of value propositions”.
“Mobile banking has to be
convenient for consumers. Consumers are still on the learning
curve. Online banking is a reality, but when security is guaranteed
and consumers try mobile banking, they prefer it,” Casartelli
added.
Using Turkey as an example – a
target market for Vipera in 2011 – Casartelli said that, despite a
stable banking technology, the huge unbanked population could
easily be brought into the banking system via a wide distribution
network.
“What is the purpose of building a
cards infrastructure if you can go straight into m-payments? There
is no point in having an ecosystem that costs a lot to manage. It
can be easily replaced with technology such as NFC. But payment
services are not in telcos’s DNA – they are a bearer.”
He said that Vipera’s model –
available as a software licence or managed service – could help
banks bridge their services with that of telcos’ to distribute
multi-channel solutions, including wallet functionality.
3 months to go live with
m-banking solution
According to Casartelli, Vipera’s
cross-carrier, cross-platform solution has the flexibility to be
personalised according to a client’s needs and requirements “in a
convenient time frame”.
The vendor has m-banking contracts
with Maybank Malaysia, Qatar National Bank, First Gulf Bank and
Mashreq and is now targeting greater exposure in Europe.
In the case of Mashreq Bank in the
UAE, it took Vipera three months “from signing the contract to
going live with a full fledged mobile banking solution”.
The service, available in English
and Arabic to six million users, can be access via any mobile
device and offers balance checks, bill and credit card payments and
remittances.
Mashreq head of retail banking
Douglas Beckett said: “Mobile banking is emerging as a key service
for consumers who expect their bank to be available to them
anytime, anywhere, globally.”
Vipera’s deals in 2010
included:
- a multi-year contract in
co-operation with Mannai Corporation to develop and operate mobile
banking and payment solutions for Qatar National Bank; - a distribution agreement
with Thailand-based consulting and IT services company T.N.
Information Systems for services in the country’s banking and
government market; and - additional services to its existing contract with Mashreq
Bank.
