For over 26 years EDC has been helping clients tackle important issues and seize opportunities in the payments industry. As borderless consultants, EDC offers our points of view on emerging trends as well as unique insights on yet unexplored areas in the payments, banking, and financial services industries.
2008 Mobile Financial Services Study
To access an executive summary report from the 2008 Mobile Financial Services Study, please click on the link to the right.
Greetings –
Mobile Payments World Magazine (www.mobilepaymentsworld.com) and Edgar, Dunn & Company have joined forces over the last two years to conduct the 2006 and 2007 Mobile Financial Services Studies. The strong response to those surveys, combined with the flood of mobile financial services initiatives announced during 2006 and 2007, have led us to develop a follow-on survey, the 2008 Mobile Financial Services Study.
This survey focuses on the range of financial services potentially available via handheld devices. The objective of the survey is to garner the insights from thought leaders in mobile technology and financial services. The information we gathered and compiled reflect a vision of the direction that mobile financial services are headed, as well as an understanding of how that vision has evolved over the last three years.
If you have any questions regarding the survey or if you would like to arrange an in-person presentation of the findings from the study, please contact us at mobile@edgardunn.com.
Sincerely;
Alex Rolfe – Publisher, Mobile Payments World
Samee Zafar – Director, Edgar, Dunn & Company
Jane Cloninger – Director, Edgar, Dunn & Company
Connie Wu – Consultant, Edgar, Dunn & Company
The Emergence of Mobile Financial Services
Mobile phones are poised to become the world’s first ubiquitous technology; they are as likely to be used in urban Western Europe as in rural India. Around 40% of the world’s population uses mobile phones, and that number is expected to grow to 60% by 2011, presenting a significant opportunity for relevant new product and service offerings. While industry players have experimented with mobile banking and mobile payments for years, only now are they finally gaining traction, largely due to technological advances and increasing user penetration.
Increasing Importance of Customer Loyalty
The cost to acquire new customers and the increasing competition in the financial services industry is driving the need to retain current customers and foster their loyalty to the institution. Harnessing knowledge of consumer payment preferences is fundamental in the development of loyalty programs.
The Changing Landscape of the Payments Industry
The payments industry is in a continuous and substantive transformation. While some markets are still evolving (e.g., Eastern Europe, China), more mature markets (e.g., the U.S., the U.K., Australia) are being redefined by regulation, the entrance of alternative payment providers, and changes in relative power among participants in the payments value chain.
Technological Innovation in Payments
The demand for RFID, micro-payment, mobile, and chip payment solutions will grow as technologies become more cost-effective and their benefits become realized across the globe.
Changes in Economics and Models of Payments Delivery
Changes in regulations, technologies, competitive dynamics, network infrastructure, and product proliferation are challenging the economics of many payment vehicles -- thus requiring providers to maintain detailed knowledge of all aspects of their payment performance, understand market segmentation, and, in many cases, to rethink the way their payment solutions are positioned and delivered to the marketplace.
Challenges of Managing Payments Risk
Payments risk exists each time value exchanges from one party to another -- even with cash. While we will never completely eliminate payment risk, mitigating these exposures can lead to greater profitability and enhanced customer service.
