“These trends show why the financial services industry is attractive to technology companies (and perhaps vice versa, though banks are usually slower to move). Thus, as we look ahead three to five years, what will be the next wave of acquisitions? Rather than banks eyeing banks or mobile providers teaming with cable providers, perhaps the coming mergers and long-term partnerships will be between banks and technology companies.”
“Moreover, branches give banks a major advantage for enrolling customers in new payment products and supporting them. We are still in the first inning of mobile banking and emerging payments. Count on these solutions to get very sophisticated over time, with banks offering the equivalent of Apple's Genius Bar to make sure customers are getting full value from these services. Barclays has already deployed 7,000 branch employees in the United Kingdom as ‘digital eagles’ to help customers learn to use online and mobile banking tools. Here in the U.S., UMB offers a similar service.”
Mobile money statistics and comparison of UK with US, Japan and more
The Financial Services Club Blog’s @Chris Skinner summarizes the Monitise “The Growth of Mobile Money” report with some striking bullet points and stats.
- Mobile-cellular penetration rates stand at 96% globally; 128% in developed countries; and 89% in developing countries.
- In 2013 smartphone sales surpassed feature phone sales globally for the first time. 1.8bn phones were sold, of which 968 million were smartphones.
- 90% of US bankers surveyed expected at least a 10% decline in branch numbers over the next 5 years, with 45% expecting the decline to be 25% or more. Branch numbers have declined 9% in just the last 3 years.
"Today’s digital money management solution works behind the scenes to provide contextual benefits that don’t require nearly as much consumer involvement. This results in an entirely different PFM experience, enabling it to become much more mainstream. Interestingly, the solutions being developed today are built for the digital consumer, who is more likely to use a mobile device (smartphones and tablets) to understand their finances as opposed to an online tool."
5 Ways Banks Can Increase Mobile App Revenue and Engagement
Bank Innovation’s @JJ Hornblass takes a Marketo post written for consumer mobile apps and tweaks it for banking apps.
“The Consumer Angle: As you continue to engage with your mobile customers, prevent over-messaging by tailoring your push strategy to accommodate each user’s unique time of day preference and message frequency tolerance.
The Banking Angle: Banks aren’t even close to getting to this level of ‘over-messaging.; If anything, consumers are craving more and better messaging.”
Where is the Smart VC Money Going in Fin Tech? Follow the Unicorns
CB Insights created several graphs and charts tracking fintech funding and predicts a record-breaking year for 2014.
Banks Open Their Wallets Wide for Mobile Banking: Survey
American Banker’s @Penny Crossman on the shift to mobile banking
“More than two-thirds (68%) of bankers said they're spending more on the channel this year than they did last year; a fifth (20%) say they've increased spending by more than 50%. One third (33%) have increased their mobile banking budget by 11% to 50%.”