INNOVATE TO WIN: FROM MOBILE BANKING TO MOBILE MONEYHow the next gen in Mobile Money management could revolutionise the banking industry as we know it

No-one knows how we will be using our mobile in 12-18 months.

But since the advent of the smartphone the world has seen an exponential acceleration in mobile innovation.

Gazing into a crystal ball app...

Gazing into a crystal ball app...

All indications are that mobile will continue to play a central role in consumers lives.

In this environment, the demand for simplified, mobile-driven experiences is only likely to continue.

Redefining the rules of engagement.

Mobile, with its ability to provide a more personal experience, has opened the door to re-assert relationships with consumers.

But in order to do so, banks must first acknowledge the power shift that has come with the move to mobile.

First generation mobile banking: bringing traditional banking services to mobile.

The next gen challenge is to deliver a new banking experience, using mobile to develop:more connected banking and payment services,clever contextual offers based on data driven insights,and create stronger customer relationships.

Building on success

Imagine a scenario in which a consumer purchases tickets to a concert. He shares the news of his purchase with his social networks. On the way to the concert (in a taxi pre-booked and paid for via his mobile), he is served vouchers for restaurants close to the venue; restaurant brands that his transactional and social history show he often frequents. He downloads the vouchers via his mobile banking app and uses his mobile to pay the balance. At the concert he meets his friends, who pay for their tickets via peer to peer payment. After the gig, he shares a positive review online, and is rewarded with priority booking and a discount on tickets for the bands next gig.

So how might the next generation look?

One size fits all is no longer appropriate.

Next generation Mobile Money will power a move towards segmented services specifically developed for individual groups:

Small businessesPersonal wealth managementMigrant workersStudents and the Millennial generation

Will banking ever be the same again?

As mobile banking becomes more segmented, the next step is greater personalisation

Data analytics enable institutions to create products and offers delivered direct to the mobile that are:

Relevant / Timely / PersonalMobile banking will transition from humble banking service to lifestyle enabler

Getting personal

Consumers are ready for more from their banks

A

0%

20%

40%

60%

80%

100%

Agree strongly Agree

I would feel more confident in buying goods and services through a mobile phone if I could do so through an app offered by my bank

Among Smartphone owners

Spain United Kingdom Germany

Consumers are ready for more from their banks

B

Many retailers now offer financial services products (e.g. M&S, Tesco). If the tables were turned and your bank started to offer products that you can buy and offers, much like supermarkets do - how would you feel?

Among Smartphone owners

I have no strong opinion

Concerned, I think financial institutions shouldnot advise people about non-financial matters

Valued, I think banks should provide moreinformation to customers

Surprised, I hadnt even considered that banksmight be able to do anything other than dealwith my money matters

Indifferent, it doesnt matter to me as long asI get the best deal on any product/serviceIm not interested in where its coming from

United Kingdom

Germany Spain

0%

20%

40%

60%

80%

100%

In order to take advantage of the huge opportunity presented by Mobile Banking, financial institutions must:

Get the right apps build high engagement, easy to use apps

Collaborate change the traditional insourcing mindset and find the right partnership

Choose an open platform

Steps to success

Open platform architecture will ensure financial institutions remain:

Agile and scalableThe speed of change is too quick for closed point systems

Connected to the ecosystemAccess to market leading products and services is essential

Future proofedNew technology could change the game tomorrow open platform prepares banks for the unexpected

A platform for delivery

Find out more by downloading the Monitise Pathway Paper on next generation mobile banking at:

www.monitise.com/insights