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Mobile Payment Wars: Will Your Bank Prevail?
As mobile hardware and applications continue to evolve, mobile banking is gaining acceptance throughout the world. Adoption is being driven by a host of innovations, such as near field communications, mobile wallets, virtual personal financial assistants, and various custom applications. The result: the mobile banking landscape is undergoing a rapid transformation wherein monetary transactions are no longer restricted to banks and traditional financial institutions.
However, many banks have been slow in capitalizing on new business opportunities created by this trend. Instead, mobile service providers and other nontraditional players have often become the first movers in this space.
Fortunately, banks have unique advantages that can help them prevail in the battle for mobile banking market share. “Rethink the ‘Mobile’ in Mobile Banking,” a new white paper from Oracle, examines these advantages along with the disruptions and innovations observed in today’s mobile communications technology.
Banks Still Enjoy Advantages
The paper explains that banks continue to hold a competitive edge against new competitors that will need to make significant investments to build a remittance corridor. In addition, these upstarts also face multiple challenges associated with managing regulations and compliance, which will cut further into profit margins. Consequently, businesses for which mobile payments is not a core service may reassess their presence in this sector. For banks, on the other hand, the pressures of regulations, interoperability, and technology upgrades are already accounted for in their existing operating models.
Nevertheless, banks must develop strategies for succeeding in a market where mobile devices are becoming ubiquitous and the preferred channel for financial transactions. That means developing and owning a global mobile payment ecosystem.
To learn more about the disruptive technologies that are altering mobile banking and how to succeed in this environment, read the Oracle white paper “Rethink the ‘Mobile’ in Mobile Banking.”