Mobile banking - How can telcos enter the retail banking market

Publisher Name :
Date: 17-May-2018
No. of pages: 38

This study addresses the mobile banking penetration strategy for a telco.

After a review of the disruptions that reconfigure the banking market, the study focuses on the various strategic questions that may arise when a telco is launching such an initiative: How does mobile banking make sense for a telco? What sort of mobile financial services can a telco provide? How should a telco enter the mobile banking market? How much does it cost and how much revenue could it produce?

The study is based on the analysis of mobile banking and mobile payment initiatives launched by telcos of which: M-Pesa, M-Shwari, Orange Money, Telenor Banka, Orange Finance, Orange Cash, O2 Banking and Orange Bank. These examples, representative in many respects of the diversity of telcos (geography, typology of services, chronology of services and similar factors.) are also representative of different penetration models of the mobile banking market and are each subject to business cases. Other examples, from telcos, fintechs or the Internet giants, also illustrate the point.

Geographic area


  • World


Actors


  • Alibaba Group

  • Amazon Pay

  • American Express

  • Android Pay

  • Apple Pay

  • Bank of America

  • Bitcoin

  • Cardlytics

  • Chase

  • Daimler Financial Services

  • First Data

  • Globalpayments

  • Groupama

  • IFC

  • KBC Banka

  • LearnVest

  • Lenddo

  • MasterCard

  • Mint

  • Moven

  • M-Pesa

  • M-Shwari

  • MTN

  • MTN’MobileMoney

  • O2 Banking

  • Orange Bank

  • Orange Cash

  • Orange Finanse

  • Orange Money

  • Paymentech

  • PayPal

  • Safaricom

  • Samsung Pay

  • Simple

  • Telenor Serbia

  • Visa

  • Vodacom

Mobile banking - How can telcos enter the retail banking market

Table of Contents

1. Executive Summary
1.1. Key findings
1.2. Recommendations: one solution for entering the mobile banking market is to share the risk with a banking partner

2. Methodology & introduction
2.1. General methodology of IDATE DigiWorld’s reports
2.2. Introduction: the online banking revolution will continue, relentlessly
2.2.1. Regulatory disruption: with banking regulation new entrants can change banking market
2.2.2. Technological disruption: new technologies and user-centric UX open the banking market to fintech
2.2.3. Business model disruption: new business models are opening the market to new data-driven entrants
2.2.4. Conclusion: the banking and payment industry is transiting major change, with new entrants

3. How M-Banking makes sense for telcos
3.1. Traditional key players in electronic payment value chain
3.2. New players on the banking value chain
3.3. New opportunities for telcos – direct and indirect – on the value chain

4. The sort of mobile financial services a telco can provide
4.1. Type of mobile financial services from mobile payment to mobile banking
4.1.1. Mobile payment
4.1.2. Mobile banking
4.1.3. Advanced mobile banking
4.2. Assessment of service-wise market potential for a telco
4.2.1. Banks and telco financial services perspective
4.2.2. Service-wise market potential valuation for telcos
4.3. Value-added services proposition to a telco’s customers

5. The best way for a telco to enter the mobile banking market
5.1. Types of variables which may influence the penetration strategy
5.2. Partnership approach to enter the banking market
5.2.1. With or without a banking partner?
5.2.2. What type of partnership?
5.2.3. What type of partner?
5.3. Eight illustrative business cases of different penetration strategies
5.3.1. Telco-only business model
5.3.2. Bank-led partnership business model
5.3.3. Partnership 50/50 business model
5.3.4. Telco-led partnership business model

6. The costs of m-banking, and its revenues
6.1. Mobile banking market opportunity
6.2. Business model
6.2.1. Cases of profitable mobile banking by telcos are originating in developing countries with a sizeable opportunity among the unbanked
6.2.2. In developed countries, the prime example of profitable mobile banking are to be found in fintech initiatives that focused on niche services and applied a low-cost strategy to acquire a mass audience.
6.3. Costs and revenues breakdown
6.3.1. Revenues: direct revenues are not the only sources of revenue for a telco
6.3.2. Costs: financing requirement is mainly driven by customer growth

List of Tables and Figures

Figure 1: A new wave of banking revolution
Figure 2: Changes in the banking market
Figure 3: Key Regulatory and Industry Initiatives (KRIIs) clustered by regulators’ primary objectives, 2017
Figure 4: Number of users for largest banks, Telco and digital players in the World
Figure 5: Three major changes in the banking market that
Figure 6: Traditional electronic payment value chain
Figure 7: New entrants’ stakes: controlling the relationship with the consumer and integrating value chain
Table 1: Advantages and challenges of competitors
Figure 8: New direct and indirect opportunities for Telco
Figure 9: Type of mobile financial services from mobile payment to mobile banking
Figure 10: Telco could reach more value by adding mobile banking services to their offering
Figure 11: Service-wise market potential valuation for Telco
Figure 12: Telco source of differentiation
Figure 13: Fintech and mobile banking app example: a focus on design, UX or niche segment to differentiate
Figure 14: Customer-centric UX best practices
Figure 15: Orange financial services strategy depends on the specifics of market
Figure 16: Type of Business Model
Table 2: example of business model and related characteristics
Figure 17: Type of business model
Figure 18: Type of Business Model
Figure 19: Fintech according to their regulation status
Figure 20: M-Pesa
Figure 21: Orange Cash
Figure 22: Orange Money
Figure 23: Orange Finance
Figure 24: M-Shwari
Figure 25: O2 Banking
Figure 26: Telenor Banka
Figure 27: Orange Bank
Figure 28: Number of registered and active customers, by region (December 2016)
Figure 29: MTN’s Mobile Money EBITDA
Figure 30: Orange Money Journey
Figure 31: N26 Business Model used to be the example for Orange Bank
Figure 32: Number of clients to break even elements
Figure 33: Direct and indirect revenues contribution to gross-profit of MTN’s MobileMoney
Figure 34: Costs split
Figure 35: Illustrative set-up costs to implement mobile banking

XX

  • Global Digitization in Lending Market Size, Status and Forecast 2019-2025
    Published: 17-Jul-2019        Price: US 3900 Onwards        Pages: 106
    Digitization in lending is an advancement in the lending and borrowing process which is carried out on the online or digital platform without making use of paperwork. In 2018, the global Digitization in Lending market size was xx million US$ and it is expected to reach xx million US$ by the end of 2025, with a CAGR of xx% during 2019-2025. This report focuses on the global Digitization in Lending status, future forecast, growth opportunity, key market and key players. The ......
  • Digitization in Lending Market Insights 2019, Global and Chinese Analysis and Forecast to 2024
    Published: 04-May-2019        Price: US 3000 Onwards        Pages: 145
    Digitization in Lending Market Insights 2019, Global and Chinese Scenario is a professional and in-depth study on the current state of the global Digitization in Lending industry with a focus on the Chinese market. The report provides key statistics on the market status of the Digitization in Lending manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry. Overall, the report provides an in-depth insight of 2014-2024 global and Ch......
  • Global Digitization in Lending Market Size, Status and Forecast 2018-2025
    Published: 07-Dec-2018        Price: US 3900 Onwards        Pages: 106
    Digitization in lending is an advancement in the lending and borrowing process which is carried out on the online or digital platform without making use of paperwork. In 2017, the global Digitization in Lending market size was xx million US$ and it is expected to reach xx million US$ by the end of 2025, with a CAGR of xx% during 2018-2025. This report focuses on the global Digitization in Lending status, future forecast, growth opportunity, key market and key players. The ......
  • Global Digitization in Lending Market Growth (Status and Outlook) 2018-2023
    Published: 04-Dec-2018        Price: US 3660 Onwards        Pages: 139
    Digitization in lending is an advancement in the lending and borrowing process which is carried out on the online or digital platform without making use of paperwork. According to this study, over the next five years the Digitization in Lending market will register a xx% CAGR in terms of revenue, the global market size will reach US$ xx million by 2023, from US$ xx million in 2017. In particular, this report presents the global revenue market share of key companies in Digitizatio......
  • Mobile banking - How can telcos enter the retail banking market
    Published: 17-May-2018        Price: US 3300 Onwards        Pages: 38
    This study addresses the mobile banking penetration strategy for a telco. After a review of the disruptions that reconfigure the banking market, the study focuses on the various strategic questions that may arise when a telco is launching such an initiative: How does mobile banking make sense for a telco? What sort of mobile financial services can a telco provide? How should a telco enter the mobile banking market? How much does it cost and how much revenue could it p......
  • The Digital banking operator case studies: Orange, Telefónica and Telenor
    Published: 24-Jul-2017        Price: US 1499 Onwards        Pages: 13
    "Operators that are committed to being leaders in mobile financial services need to invest heavily in developing a defensible position against incumbent retail banks." Operators such as Orange, Telefónica and Telenor have launched banking initiatives in key countries because they believe there is an opportunity to capture market share from incumbent banks as consumers increasingly embrace digital banking. However, these operators also face strong competition fr......
  • Online Consumer Payments: Sizing the Opportunity
    Published: 20-Mar-2017        Price: US 3450 Onwards        Pages: 33
    Online Consumer Payments: Sizing the Opportunity Summary This report examines the online consumer payments market in 28 global markets, considering the overall market size and its development, as well as the importance of mobile devices as opposed to desktop and laptop computers. The report also breaks down the online market by the type of goods consumers buy and the tools they choose to pay with, considering how consumer buying behavior has changed and the drivers of t......
  • Retail Banking Country Snapshot: Germany 2016
    Published: 15-Oct-2016        Price: US 3450 Onwards        Pages: 48
    Summary Local and co-operative banks, such as the Sparkassen and Volksbanken Raiffeisenbanken, dominate the retail banking market in Germany, with private commercial banks having a much smaller presence. Consumers strongly favor providers with good reputations, and personal recommendations are particularly important to younger age groups. Branches remain the most used acquisition channel across all products, although satisfaction levels for ongoing interactions are hi......
  • Retail Banking Country Snapshot: Australia 2016
    Published: 14-Oct-2016        Price: US 3450 Onwards        Pages: 55
    Summary The Australian financial services market is highly developed, although it is largely dominated by its big four - Commonwealth Bank (CBA), NAB, Westpac, and ANZ, which each own a number of other banks with strong brands in the market such as St.George, Bank west, and Bank of Melbourne. The country has a very large banked population who favor providers with good reputations and competitive rates. Although a sizable minority of consumers have already used fintech......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - sales@rnrmarketresearch.com / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs