Can the mobile phone bring a range of financial transactions and services to the underbanked? That is the thesis of a new report out of Celent, the global consultancy, and Center for Financial Services Innovation.
Central to the report's argument is that – given the near ubiquity of mobile phones today and the fact that just about all of them now have Web access capabilities – “there is vast potential for a robust suite of mobile financial management and transaction tools to strengthen the financial lives of underbanked consumers,” said the report.
Celent admitted that the activity that probably seems most central to mobile financial services – that is, payments on the fly using NFC technologies or an electronic wallet – is unlikely to figure as a significant factor in its predicted revolution in cellphone banking.
Limitations of the cellphone technology of the underbanked are one reason. Another is worry about fraud. A third is that mobile payments are presently seen as extensions of existing accounts, not as ways to serve new accounts.
But big opportunities nonetheless exist, said Boston-based Celent, particularly in terms of delivering much more and current information about accounts to the underbanked and, said Celent, the phone is the ideal tool.
“Given the comfort and attachment that people feel with their mobile phones, and considering that many financially underserved consumers are uncomfortable with banks, mobile devices hold considerable promise to provide broad access to financial services,” the report said.
The report's most startling conclusion in fact is its urging financial institutions to broaden mobile financial services definitions to consciously take aim at the presently underbanked.
According to Celent, “Given the comfort and attachment that people feel with their mobile phones, and considering that many financially underserved consumers are uncomfortable with banks, mobile devices hold considerable promise to provide broad access to financial services.”
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
