Yankee Group Says Low-Income Market Initiatives Will Drive Mobile Banking in North America
North American Mobile Providers Can Learn Lessons from Overseas,
Empowering the Anywhere Consumer
BOSTON--(Business Wire)--Yankee Group today announced that mobile banking (m-banking) must
become available to a majority of mobile users including prepaid and
low-income consumers if it is to succeed in North America. M-banking
solution providers in North America can learn an important lesson on
service adoption from international low-income initiatives as the
global rise of the Anywhere Consumer(TM) takes hold.
According to the recently published Yankee Group Report, Mobile
Banking Lessons from International Low-Income Initiatives, there is a
difference between the way m-banking solutions work overseas and in
North America. In countries such as South Africa and the Philippines,
m-banking keeps low-income consumers' money safe; at the same time it
reduces fees, which makes these services affordable. On the other
hand, North American providers typically market m-banking to a more
affluent and technologically advanced user as a convenience service.
However, m-banking can also benefit low-income consumers in North
America much as it has overseas.
"M-banking in North America is gaining traction, but it's still
far from becoming a reality," said Patrick Monaghan, senior analyst,
Yankee Group Consumer Research group. "Success in North America will
be determined by overcoming the biggest issues in adopting m-banking;
the cost of data plans by wireless carriers, security and consumer
knowledge about it."
In today's Anywhere mobile environment, communications players are
feeling pressure to identify new revenue streams as consumers gain
greater control of their communication services and products.
Monaghan's report reveals how low-income initiatives overseas that tap
the low-income consumer group (such as m-banking) aligns with the
Anywhere Consumer's expectations in the global economy, enabling
communication players to get ahead of the global connectivity
revolution.
Low-income consumers in North America make up 21% of all mobile
phone consumers. But technology and price barriers continue to keep
this segment of the population in North America from adopting
m-banking services. Several key factors will drive m-banking success
in North America:
-- M-banking needs to be cheaper than traditional channels.
-- Providers must target low-income segment to find early
adopters of the service.
-- Sales and marketing must address account eligibility,
ease-of-use and cost.
-- M-banking needs to be easy to use.
-- Users will still need human interaction, so branch access or
phone customer service should be part of any package.
A must-read for all players in the communications industry
including wireless carriers, mobile phone manufacturers, banks and
credit card companies, this Report is available at
www.yankeegroup.com.
YANKEE GROUP (www.yankeegroup.com)
The people of Yankee Group are the global connectivity
experts(TM)--the leading source of insight and counsel for builders,
operators and users of connectivity solutions. For nearly 40 years,
Yankee Group has conducted primary research that charts the pace of
technology change and its effect on networks, consumers and
enterprises. Headquartered in Boston, Yankee Group has a global
presence including operations in North America, Europe, the Middle
East, Africa, Latin America and Asia-Pacific.
Yankee Group
Patrick Monaghan, 617-598-7246
senior analyst
pmonaghan@yankeegroup.com
or
Christina Oh, 617-598-7238
public relations manager
coh@yankeegroup.com
Copyright Business Wire 2008
