In a new whitepaper, SWIFT stresses the importance of mobile payments (m-payments) for the financial industry and recommends that banks could make a bolder move in the mobile money transfers business – working together to deploy a global m-payments service for international money transfers and remittances.
The new SWIFT whitepaper argues that mobile payments are rightly a top investment priority for banks globally, unsurprisingly since out of a world population of 7 billion, more than 5 billion (70%) have a mobile phone, while only 2 billion (30%) have a bank account. This fast growing market is predicted to carry US$1 trillion in transaction value by 2015.
However, non-banks like mobile network operators and e-commerce companies are currently deploying many of the m-payment solutions. Several banks have already embraced m-payments, but banks all around the world could do more to strengthen ties with their customers in a new ‘experience banking model’.
SWIFT outlines three areas of strategic opportunity for banks:
- Actively invest and expand mobile banking, in particular for corporates.
- Partner with e-commerce companies to gain experience in m-commerce.
- Develop a global service for mobile money transfers.
In particular with regard to international money transfers, banks should collaborate to develop a global service that is mobile enabled. This can increase their market share and help address competition from non-banks.
“Banks have the power to shape the future of mobile payments. Collaboration with room for differentiation is key. All it takes is for a few leading banks to take initiative,” said Wim Raymaekers, head of banking market at SWIFT.
In other news, SWIFT has launched MyStandards, a web-based application designed to facilitate the management of global standards and related market practices across the financial industry. The platform will be commercially available at the end of June 2012.
A report by broking group Marsh examines the repercussions from the administration of the South Korean company, which filed for bankruptcy protection at the end of August.
Global research by C2FO suggests that smaller businesses are less concerned with the repercussions of Brexit and the upcoming US presidential election.
A squeeze on skilled talent means it now takes an average of seven weeks to fill open permanent roles in finance in the UK according to new research from financial services recruitment firm Robert Half.
Early-stage merger and acquisition deals in Asia-Pacific show nearly 10% year-on-year growth in recent months.