Consumer demand for mobile money transfer services will see users exceed 500 million globally by 2014, principally in developing countries, according to Juniper Research. Signs point toward mobile money management as being the personal banking option of the near future. So why have banks been slow to roll out these services to the general public?
Financial institutions looking to develop mobile money management capabilities face challenges such as security concerns, inadequate technology and business ecosystems, high implementation costs and an uncertain regulatory environment.
Before embracing the future of banking, financial institutions must learn to do it efficiently.
Mobile money management refers to both mobile payment and mobile banking capabilities. In the area of mobile banking payments, the consumer uses a mobile device for initiating, authorizing and realizing a payment.
These transactions can take place either by using the device as an equivalent to a credit card or wallet - payments are taken directly through the phone - or by using near field communication (NFC) technology to execute a payment directly. NFC capabilities give a mobile device "point and click" functionality on a phone, making it a mobile "wallet."