New York (PRWEB) April 24, 2013
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:
- Access to valuable data: Not only do mobile payments cost less than those made in-person – or even at an ATM -- but mobile banking offers access to a new high-value asset: detailed customer data. Electronic wallets collect valuable data about consumers that reveals their purchasing habits and tendencies, giving the service provider an opportunity to win their brand loyalty and benefit from their future purchases.
- Increased customer base: Mobile banking offers the opportunity for banks to dramatically increase their customer base. For example, in the developing world, about 1.8 billion people have mobile phones but no bank accounts. Mobile banking has changed their lives, and given banks a great opportunity to attract these new customers if they can anticipate their needs and deliver a quality service.
- Partnership opportunities: In developed markets, nonbanking competitors are potential collaborators for banks, which could combine competitors’ strengths in technology Big Data with banks’ strengths in consumer trust, financial expertise and regulatory compliance.
"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.
About Ernst & Young's Global Banking & Capital Markets Center
In today's globally competitive and highly regulated environment, managing risk effectively while satisfying an array of stakeholders is a key goal of banks and securities firms. Ernst & Young's Global Banking & Capital Markets Center brings together a worldwide team of professionals to help clients achieve their potential – a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately it enables us to help clients meet their goals and compete more effectively. It's how Ernst & Young makes a difference.
About Ernst & Young
Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 152,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential. For more information, please visit http://www.ey.com Ernst & Young refers to the global organization of member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
About The Wharton School and Knowledge@Wharton
Knowledge@Wharton is the online business analysis journal of the Wharton School of the University of Pennsylvania. The site, which is free, captures relevant knowledge generated at Wharton and beyond by offering articles and videos based on research, conferences, speakers, books and interviews with faculty and other experts on current business topics. The Knowledge@Wharton network – including Chinese, Spanish, Portuguese, Indian, Arabic and
Israeli and High School editions – has more than 2.2 million subscribers worldwide.
Founded in 1881 as the first collegiate business school, the Wharton School of the University of Pennsylvania is recognized globally for intellectual leadership and ongoing innovation across every major discipline of business education. With a broad global community and one of the most published business school faculties, Wharton creates economic and social value around the world. The School has 5,000 undergraduate, MBA, executive MBA, and doctoral students; more than 9,000 annual participants in executive education programs; and a powerful alumni network of 91,000 graduates.