April 26 - With the mobile banking revolution in full swing, banks are in danger of being left out of consumers’ electronic wallets if they fail to evolve to meet present and future mobile payment needs, according to a new, enhanced eBook released today by Ernst & Young and Knowledge@Wharton.
"Mobile Banking: Financial Services Meet the Electronic Wallet" details how mobile money – the storage and movement of money on cell phones, tablets and other portable electronics for transactions anywhere at any time – is quickly sweeping across developed and emerging markets. A recent industry report projects that more than one billion mobile phone users will use their mobile devices for banking by the end of 2017, up from just over 590 million this year.
In the battle for the electronic wallet, banks have been slow-footed while facing an increasing slate of new and well-equipped challengers from outside of the traditional financial services industry, such as telecommunications companies, internet giants, large retailers, and even software and hardware companies.
Yet, banks remain formidable competitors, armed with infrastructure, payment technology, regulatory know-how and customer knowledge according to Eric Bradlow, professor of marketing at Wharton. Steven Lewis, Global Banking Lead Analyst for the Ernst & Young organization, agrees, citing the strength of bank customer relationships.
“What we need to do is think about the different elements of banking versus banks and therefore who may be best placed to own, manage and exploit different elements of that lifestyle,” said Lewis. “The key question here is: Who is going to have the primary relationship with the customer? That is going to be a primary driver as to who the dominant player is.”
Where are the opportunities for banks?
"Mobile Banking: Financial Services Meet the Electronic Wallet" found compelling reasons for banks to join the revolution. A few are outlined below:
"Mobile Banking: Financial Services Meet the Electronic Wallet" enhanced eBook can be downloaded in the Apple iBookstore, Samsung Readers Hub and on Amazon and Barnes & Noble. It can be viewed on an iPad, iPhone or iTouch using the Apple iBookstore app or the Kindle app, or viewed on the Barnes & Noble Color Nook or tablet and the Samsung Tablet or Premier Galaxy. For more information or to view excerpt videos, please visit the enhanced eBook preview page. The full video interviews are also available at the Global Banking: Foresight & Insights website.