UPDATE 2-Nokia sees enormous potential in mobile money

* Financial services among top opportunities in mobile

* Global market seen at 18 bln euros by 2014 (Recasts 1st paragraph, adds details, background)

By Tarmo Virki, European technology correspondent

HELSINKI, Nov 12 (Reuters) - Nokia (NOK1V.HE) sees a good chance for mobile financial services to become big business in coming years, and the world's top cellphone maker hopes to take a slice of the emerging market at its takeoff.

Telecom operators, banks and handset makers are increasingly looking at the opportunity to find additional revenue from mobile financial services.

"This is one of the biggest opportunities out there for mobile. The potential is enormous, but it is a very complex business," said Teppo Paavola, head of Nokia's Money service.

Paavola, quoting independent research firms, said the global mobile financial services market would reach 18 billion euros ($27 billion) by 2014.

The market for Western Europe will surge from almost nil to between 4 billion and 5 billion euros by 2013, research firm Frost & Sullivan said on Thursday. [ID:nLC197980]

Nokia Money service will use the mobile payment platform of Obopay, a privately owned firm that Nokia invested in earlier this year. It uses text messaging and mobile Internet access, and charges users a fee to send money or to top up their accounts.

Nokia will also cooperate with banks to roll out the services. It is scheduled to open the service early next year.

FOCUS ON EMERGING MARKETS, INDIA

"The focus is on emerging, growth markets," Paavola said. He declined to specify the markets where the service would be opened first, saying that would depend on deals with banks and regulatory approvals.

So far the take-up of such services has been limited mostly to a few emerging markets. In developed countries, the popularity of online banking and security worries have hurt takeoff.

"Operators and banks alike are still building consumer trust in terms of transferring money and paying bills over the phone," Frost & Sullivan analyst Sharifah Amirah said.

Nokia brings to the table its wide distribution chain -- there are 180,000 places to buy Nokia phones in just India, seen as one of the key market for mobile money.

"Probably everyone would like to be in India, but the regulations there are tough, one of the toughest," Paavola said.

Kabir Kumar, mobile money expert at microfinance center CGAP, said Indian regulators were likely to expand the list of institutions that could be agents.

"But all signs suggest that is going to be a while before mobile operators are really allowed to drive this business," Kumar said.

Globally, the service began in early 2007 with the launch of Safaricom's (SCOM.NR) M-PESA in Kenya, which has attracted 8 million customers, or one in five Kenyans. Average daily transactions total $10 million. [ID:nLC366964]

Nokia hopes to benefit from its wide approach -- the service would work for clients of all operators. Also, Nokia has market share of 60 percent to 70 percent in most emerging markets, and its service would also work from other vendors' phones.

Gavin Krugel, director at mobile industry lobby GSMA, said the jury was out on which model would win, but he saw trusted operator brand having a strong position.

"I think operators are by far best positioned to sell mobile financial services," Krugel said. ($1=.6668 euros) (Reporting by Tarmo Virki; editing by Simon Jessop and John Wallace)