You are here

MOBILE NEWS: Mobile financial services are big international business

Financial services via mobiles are expected to reach unprecedented penetration levels in developing countries in the next two years according to a report from Juniper Research.

The report, aimed at financial institutions, banks and service providers, identifies that some developing regions will achieve a rate of one in five money service users over the next two years.

Offering an insight into the findings, Howard Wilcox, senior analyst for Juniper Research said, "The banked population in developing regions is typically much lower than developed countries - maybe 10 to 20 per cent of people have a bank account, yet mobile penetration is usually quite high - around 60 to 80 per cent - making the mobile device and SMS in particular a key technology in the provision of financial services.

Sanjay Mistry, technical director of InfoMedia Services says the ease of use and ubiquity of mobile phones is the reason behind the expected drive. He said, " Because mobile phones are now so popular, possibly more than fixed line Internet, mobile money will allow users to access those services without the need of a permanent residence. In effect it will become a banking service that is open anytime, any place."

Commenting on mobile marketing in a feature from the October 2010 issue, Anil Pillai, MD of marketing agency LBI says the financial services sector is especially interested mobile marketing. His clients including BT and Lloyds have plans to make mobile part of their marketing mix. He said, "It can drive a subject to everything from trading platforms to equities investment."

For a complete overview of the report and to buy, visit the Juniper Research website.