Showing posts with label mobile finance services. Show all posts
Showing posts with label mobile finance services. Show all posts
Thursday, February 24, 2011
Sunday, February 13, 2011
NFC-based Cross-border Mobile Financial service
As early as end of this year, Korean and Japanese users will be able to experience seamless and convenient mobile payment in Korea and Japan with the introduction of Near Field Communication (NFC) based mobile financial services.
For the cross-border mobile payment service, KT, the second-largest mobile carrier, has joined with NTT DoCoMo, the leading mobile carrier in Japan. Meanwhile SK Telecom, the No. 1 mobile carrier in the local market, has joined forces with KDDI and Softbank Mobile.
source
Tuesday, February 8, 2011
ICICI Bank & Aircel Tying Knot For Financial Inclusion
ICICI Bank Ltd, India’s largest private sector bank and Aircel, one of the leading Mobile Network Operators in India, today announced a joint initiative to drive financial inclusion in the country. Under the Memorandum of Understanding (MoU), ICICI Bank will offer, in partnership with Aircel, various financial products including savings accounts, pre-paid instruments and credit products.
This partnership is expected to bring the un-banked and under-banked population into the organised financial services framework and assist in furthering the electronic payments market in India. ICICI Bank will leverage the distribution strength of Aircel, which has the required reach to drive the initiative.
The Government of India and the Reserve bank of India have been working towards ensuring that financial products and services are within reach of the entire population. The partnership between ICICI Bank and Aircel sets out to achieve the goal of financial inclusion in the country. With the use of the mobile phone, ICICI Bank and Aircel will target the unbanked and under-banked population by bringing a cost effective solution to this space.
Speaking on the alliance, Mr. Rajiv Sabharwal, Executive Director, ICICI Bank, said, “We are excited about this partnership with Aircel, which will help ICICI Bank in deepening its base within the country. Mobile penetration currently stands at 60% in the country of which the rural market forms a major contributor. There is a huge potential for offering mobile banking in these regions, which will facilitate access to the financially excluded parts of the society and ensure that benefits from various welfare and growth programs of the government reach them along with other financial services and products. ”
Talking about the joint initiative, Mr. Gurdeep Singh, Chief Operating Officer, Aircel said: "We are very pleased to partner with ICICI bank in their endeavor towards financial inclusion. The partnership would enable the companies to unleash exciting products and services that will empower enterprise and retail customers across rural and urban India. The partnership will leverage on Aircel's rich experience and infrastructure in IT, customer services and extensive sales and distribution network which will facilitate the delivery of financial products and services. Aircel also brings to the partnership proven capability of providing differentiated products, focus on non-voice services and vision to connect people to their world of possibilities.”
Both parties will work out the specific arrangements in the coming few weeks and chart out a go-to-market plan.
About ICICI Bank: ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country, with consolidated total assets of over $115 billion at December 31, 2010. ICICI Bank’s subsidiaries include India’s leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Bank’s global presence currently spans across 18 countries.
About Aircel:
Aircel, a part of Maxis Communications Berhad, Malaysia, is India’s fifth largest GSM mobile service provider with a subscriber base of over 50 million and is the fastest growing mobile operator in the country. It is the market leader in Tamil Nadu, Assam, North-East and Chennai. . Aircel is now present in 23 Telecom Circles and is a Pan India operator (Mumbai, Pune, Uttar Pradesh East, Uttar Pradesh West, Delhi, Andhra Pradesh, Karnataka, Kerala, Kolkata, Assam, Bihar, Chennai, Himachal Pradesh, Jammu and Kashmir, North-East , Orissa, Tamil Nadu, West Bengal, MP & Chhattisgarh, Haryana, Punjab, Gujarat & Rajasthan).For more information, please log on to www.aircel.com
Aircel, a part of Maxis Communications Berhad, Malaysia, is India’s fifth largest GSM mobile service provider with a subscriber base of over 50 million and is the fastest growing mobile operator in the country. It is the market leader in Tamil Nadu, Assam, North-East and Chennai. . Aircel is now present in 23 Telecom Circles and is a Pan India operator (Mumbai, Pune, Uttar Pradesh East, Uttar Pradesh West, Delhi, Andhra Pradesh, Karnataka, Kerala, Kolkata, Assam, Bihar, Chennai, Himachal Pradesh, Jammu and Kashmir, North-East , Orissa, Tamil Nadu, West Bengal, MP & Chhattisgarh, Haryana, Punjab, Gujarat & Rajasthan).For more information, please log on to www.aircel.com
Except for the historical information contained herein, statements in this release, which contain words or phrases such as 'will', 'would', etc., and similar expressions or variations of such expressions may constitute 'forward-looking statements'. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to obtain statutory and regulatory approvals and to successfully implement our strategy, future levels of non-performing loans, our growth and expansion in business, the adequacy of our allowance for credit losses, technological implementation and changes, the actual growth in demand for banking products and services, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by us with the United States Securities and Exchange Commission. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof. source
Monday, February 7, 2011
Mobile Financial Services Adoption Easier in Rural Areas
As against the existing channels of delivery of banking and financial services in the rural under-banked areas, adoption of mobile financial services (MFS) may tend to be easier, says a study by the Indian Institute of Management, Ahmedabad (IIM-A).
Conducted by faculty members Rajanish Dass and Sujoy Pal, the working paper has tried to study factors benefiting as well as detrimental to adoption of MFS in under-banked rural areas. The paper defines MFS as one encompassing a broad range of financial activities that consumers engage in or access using their mobile phones, namely mobile banking (m-banking) and mobile payments (m-payments).
Findings of the study "indicate that the demand for banking and financial services and the amount of hardships faced in availing these services through the existing channels of delivery can act as strong drivers for MFS adoption among the rural under-banked".
On the other hand, factors like lack of trust on technology and lack of technology readiness were found to act as barriers to the adoption of MFS. Adoption of MFS in under-banked rural areas also witnesses lesser resistance due to lack of probable risk involved in technology. "Factors like perceived risk and concerns about privacy and security of the MFS that were found to be pronounced in the existing studies that were conducted on population having adequate accessibility to various alternative channels of financial services, was not observed in the case of the rural under-banked population.
This can also be related to lesser resistance among the rural under-banked in switching from the existing channels of financial service delivery to MFS as compared to the population that is comfortable with the accessibility and quality of the banking and financial services available to them through the existing channels," the study further states.
The study also revealed that the demand of core banking and financial services as well as hardships faced by the population in availing such services through existing channels of delivery were prime drivers for adoption of mobile enabled financial services among the rural under-banked. As for the prime bottlenecks, the paper suggest lack of trust and low technology readiness as deterrents in adoption of MFS.
Moreover, highlighting perceived financial cost as a matter of concern among the rural people, the study suggests that such bottlenecks "could be removed or reduced through increased awareness and usage among the peers".source
Conducted by faculty members Rajanish Dass and Sujoy Pal, the working paper has tried to study factors benefiting as well as detrimental to adoption of MFS in under-banked rural areas. The paper defines MFS as one encompassing a broad range of financial activities that consumers engage in or access using their mobile phones, namely mobile banking (m-banking) and mobile payments (m-payments).
Findings of the study "indicate that the demand for banking and financial services and the amount of hardships faced in availing these services through the existing channels of delivery can act as strong drivers for MFS adoption among the rural under-banked".
On the other hand, factors like lack of trust on technology and lack of technology readiness were found to act as barriers to the adoption of MFS. Adoption of MFS in under-banked rural areas also witnesses lesser resistance due to lack of probable risk involved in technology. "Factors like perceived risk and concerns about privacy and security of the MFS that were found to be pronounced in the existing studies that were conducted on population having adequate accessibility to various alternative channels of financial services, was not observed in the case of the rural under-banked population.
This can also be related to lesser resistance among the rural under-banked in switching from the existing channels of financial service delivery to MFS as compared to the population that is comfortable with the accessibility and quality of the banking and financial services available to them through the existing channels," the study further states.
The study also revealed that the demand of core banking and financial services as well as hardships faced by the population in availing such services through existing channels of delivery were prime drivers for adoption of mobile enabled financial services among the rural under-banked. As for the prime bottlenecks, the paper suggest lack of trust and low technology readiness as deterrents in adoption of MFS.
Moreover, highlighting perceived financial cost as a matter of concern among the rural people, the study suggests that such bottlenecks "could be removed or reduced through increased awareness and usage among the peers".source
Wednesday, January 26, 2011
Affordable Financial Services on Mobile
India's telecom regulator Trai wants to fix tariffs for banking and other financial services on mobile phones to ensure that this facility is affordable to the masses.
At present, market forces determine telecom tariffs in India, with very little intervention from Trai or the government. The regulator is of the opinion that 'the proposed framework for delivery of basic financial services is intended to promote financial inclusion, including transfer of funds under various government schemes and programmes targeted to poor people', which calls for regulating tariffs for such services.
"Tariff regulation would be crucial if adoption of mobile banking is to be encouraged especially among the unbanked segments of the population. In such a situation cost effectiveness of delivery of basic financial services through mobile phones becomes an important consideration. Every effort should be made to keep the provisioning of the services affordable for the target beneficiaries," the regulator said when launching a consultation process to gauge the industry's reaction to this proposal.
The consultation process will also enable the regulator to fianlise its recommendations on other policy issues that are vital for framing guidelines for mobile banking services.
Trai has also sought the industry's response on a recent government panel report, which had said that customers wanting to operate their accounts through cellphones must shell out a 2% commission to the bank.
The inter-ministerial group constituted to frame rules for banking services on cellular handsets had also said that that banks in turn must pay the telco a minimum of 2.25 per transaction or 1.4% of the total amount, while adding that the commission be gradually reduced to 1% over the 5 years. If the telco were to set up mini ATMs, and if the transactions were to happen through these, then banks must pay the mobile phone company a minimum of 3 per transaction or 2.25% of the amount, the report had added.
Earlier this month, the country's two leading cellphone companies announced separate tie-ups with the largest banks here to provide financial services on handsets. Bharti Airtel , the country's largest mobile phone company by both customers and revenues had formed a 49:51 joint venture with State Bank of India to provide mobile-banking and other financial services, and Vodafone Essar Ltd , majority owned by UK's Vodafone, unveiled a similar deal, by entering into a JV with ICICI Bank , India's largest private sector bank.
Other mobile service providers are also slated to announce similar tie-ups with banks over the next couple of months.
SBI-Airtel is targeting to get two million such accounts on a yearly basis which would be easily scaled up to five million accounts a year owing to the bank's wide reach and Airtel's 1.5 million touch points, Bhatt added. Similarly, ICICI said it plans to take use the strength of Vodafone, which also has over 1.5 million retail points, for acquiring customers and servicing them.
India has over 700 million mobile connections with a penetration of more than 60%. In comparison, a significant majority of the country's population does not have access to banking services. Latest estimates by the Central Bank say that only 50,000 of the 600,000 villages in the country have access to finance.
source
At present, market forces determine telecom tariffs in India, with very little intervention from Trai or the government. The regulator is of the opinion that 'the proposed framework for delivery of basic financial services is intended to promote financial inclusion, including transfer of funds under various government schemes and programmes targeted to poor people', which calls for regulating tariffs for such services.
"Tariff regulation would be crucial if adoption of mobile banking is to be encouraged especially among the unbanked segments of the population. In such a situation cost effectiveness of delivery of basic financial services through mobile phones becomes an important consideration. Every effort should be made to keep the provisioning of the services affordable for the target beneficiaries," the regulator said when launching a consultation process to gauge the industry's reaction to this proposal.
The consultation process will also enable the regulator to fianlise its recommendations on other policy issues that are vital for framing guidelines for mobile banking services.
Trai has also sought the industry's response on a recent government panel report, which had said that customers wanting to operate their accounts through cellphones must shell out a 2% commission to the bank.
The inter-ministerial group constituted to frame rules for banking services on cellular handsets had also said that that banks in turn must pay the telco a minimum of 2.25 per transaction or 1.4% of the total amount, while adding that the commission be gradually reduced to 1% over the 5 years. If the telco were to set up mini ATMs, and if the transactions were to happen through these, then banks must pay the mobile phone company a minimum of 3 per transaction or 2.25% of the amount, the report had added.
Earlier this month, the country's two leading cellphone companies announced separate tie-ups with the largest banks here to provide financial services on handsets. Bharti Airtel , the country's largest mobile phone company by both customers and revenues had formed a 49:51 joint venture with State Bank of India to provide mobile-banking and other financial services, and Vodafone Essar Ltd , majority owned by UK's Vodafone, unveiled a similar deal, by entering into a JV with ICICI Bank , India's largest private sector bank.
Other mobile service providers are also slated to announce similar tie-ups with banks over the next couple of months.
SBI-Airtel is targeting to get two million such accounts on a yearly basis which would be easily scaled up to five million accounts a year owing to the bank's wide reach and Airtel's 1.5 million touch points, Bhatt added. Similarly, ICICI said it plans to take use the strength of Vodafone, which also has over 1.5 million retail points, for acquiring customers and servicing them.
India has over 700 million mobile connections with a penetration of more than 60%. In comparison, a significant majority of the country's population does not have access to banking services. Latest estimates by the Central Bank say that only 50,000 of the 600,000 villages in the country have access to finance.
source
Sunday, January 16, 2011
Mobile finance: A new way to manage your money
Mobile finance services are gathering steam as mobile banking is the easiest way to do money management.
Stock market digital highlights some key benefits brought by the mobile finance services.
Result-oriented service
Besides being convenient, Mobile finance service is a solution-based service. There will be a very strong organic growth in the mobile finance service segment just because it gets your quicker results with a click of a button.
Advantageous applications
Mobile applications come with excellent benefits. Mobile applications like Money Transfer can assist you in sending money via SMS messages. Mobile Payment is another application that will soon erase the traditional practices of money deployment.
Mobile-Wallet
Since mobile is omnipresent and does not require special arrangements to communicate the way internet does, every Tom, Dick and Harry can use his mobile as a wallet. Plus, the M-wallet will take care of the payment delay issues and will ensure timely delivery of money.
Mobile finance service is not a new phenomenon anymore. Intensive consumer adoption has led the technological innovation and we will see improved ways of managing money through our inseparable, sixth finger – Mobile. source
Result-oriented service
Besides being convenient, Mobile finance service is a solution-based service. There will be a very strong organic growth in the mobile finance service segment just because it gets your quicker results with a click of a button.
Advantageous applications
Mobile applications come with excellent benefits. Mobile applications like Money Transfer can assist you in sending money via SMS messages. Mobile Payment is another application that will soon erase the traditional practices of money deployment.
Mobile-Wallet
Since mobile is omnipresent and does not require special arrangements to communicate the way internet does, every Tom, Dick and Harry can use his mobile as a wallet. Plus, the M-wallet will take care of the payment delay issues and will ensure timely delivery of money.
Mobile finance service is not a new phenomenon anymore. Intensive consumer adoption has led the technological innovation and we will see improved ways of managing money through our inseparable, sixth finger – Mobile. source
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