Mobile Financial Services - A Competitive and Fragmented Landscape

report december 2012
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Report published
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Mobile Financial
Services:
A competitive
(and fragmented)
landscape

Mobile Financial Service:
A competitive (and fragmented)
landscape
Published by
Value Partners Management Consulting Ltd
Kings Building, 7th Floor,
16 Smith Square, London SW1P 3JJ, UK
In partnership with
Fiserv
In collaboration with
Payments Card & Mobile
December 2012
Written and edited by:
Francesco Burelli, Roger Clarke,
Edward Clifford and Mark Weston
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report Mobile Financial Services
foreword 5
1 Executive Summary 7
2 The mobile platform’s role in the financial
services landscape 9
2.1 The mobile platform’s coming of age
in financial services 9
2.2 The competitive landscape 12
2.3 The market drivers 13
2.3.1 Mobile service penetration 13
2.3.2 Device and infrastructure evolution 13
2.3.3 Mobile financial service development 17
2.4 The developed and developing world dichotomy 18
3 Retail banking 21
3.1 Segment overview 21
3.2 M-banking propositions 21
3.3 M-payments propositions – Developed World 26
3.4 M-payments propositions – Developing World 31
3.5 Implications 33
4 Private banking 35
4.2 Propositions 35
4.3 Implications 38
5 Corporate banking 39
5.2 Propositions 39
5.3 Implications 42
6 Innovation and first-mover advantages 43
7 Conclusions 44
CONTENTS

4—5
Mobile financial services have
the potential to benefit
consumers, corporates and
financial institutions alike.
When implemented effectively
they promise to dramatically
improve the efficiency of the
financial services industry.

Mobile financial services have been a target of
development and investment for the last fifteen years.
After a number of – mostly short-lived – attempts at kick-
starting this nascent channel by various players in the
financial services industry, mobile banking and payments
are now attracting renewed interest. This has led to
the establishment of a number of successful business
models and value propositions.
Mobile financial services have the potential to benefit
consumers, corporates and financial institutions
alike. When implemented effectively they promise to
dramatically improve the efficiency of the financial
services industry: consumers will no longer have to queue
at bank branches to perform simple banking transactions,
corporates may be able to do away with cumbersome
payment and treasury processes, and institutions
themselves can deliver richer services in a more cost-
effective manner. The mobile channel thus has the
potential to radically transform how money is managed.
However financial institutions generally have been
slow to implement this new form of service delivery, in
contrast to many technology and telecommunications
companies. This is because of uncertainties regarding
whether a tangible return on investment exists, the
lack of a clear mobile strategy at board level and a
risk-averse attitude when it comes to taking the lead in
an entirely new and unproven sector. This hesitance has
left a gap that non-bank players have exploited, with
potentially disruptive consequences for the traditional
bank-customer relationship.
Foreword

6—7
The time of mobile financial services seems to have
finally arrived. Wireless connectivity continues to
improve worldwide as mobile broadband is starting to
become mainstream even in developing economies. Device
capabilities are rapidly improving, with the smartphone
revolutionising the level of services that customers
can expect to receive remotely. The available services on
offer are also improving, as numerous players become
more experienced in fulfilling consumers’ requirements,
and those consumers become more comfortable with the
concept of managing their finances ‘on the move’.
Mobile financial services have thus advanced from one
of the many areas of development during the “dotcom
boom” of the 90’s into a domain that is now bursting with
activity. Despite the increasing attention and investment
that mobile banking and payments are attracting, they
have yet to be fully exploited, with numerous attempts
being made by a wide variety of players to capture a
hugely fragmented market.
In this rapidly developing sector, this report examines
the developments of mobile banking and payments across
the retail, private and corporate banking sectors.
It thus provides a valuable snap-shot of the state of an
emerging industry and highlights some of the issues and
questions to which ‘traditional’ financial institutions
must respond if they are to maintain their historic level
of control over the bank-customer relationship.
Serge Van Dam
VP, Market Development,
Mobile Solutions Fiserv
Francesco Burelli
Partner, Value Partners

In such a rapidly developing space, the
need for a comprehensive overview of
the competitive landscape is clear.
In light of this, Value Partners has
undertaken an analysis of the retail,
corporate and private banking sectors,
with a view to gaining insights regard-
ing the propositions available and their
implications.
Interoperability within the mass market
will obviously be key to the develop-
ment of this mobile technology, helping
to promote network effects that facili-
tate service expansion. This expansion
becomes increasingly likely if financial
service providers are able to leverage
pre-existing assets such as a large cus-
tomer base and/or brand power.
Financial institutions are finally begin-
ning to realise the potential of the mo-
bile platform as a means to offer their
services, with mobile payment transac-
tions in 2011 estimated to have been
worth $163 billion. However, up to this
point, financial institutions have not led
innovation in their area. Telecom opera-
tors have already spotted the potential
benefits of mobile financial services,
with more recent interest coming from
internet-based third-parties and tech-
nology providers.
Broadly speaking, there have been three
main drivers for the growth of mobile
financial services. These are increased
mobile service penetration (generally in
excess of 100% in the developed world),
device and infrastructure evolution (with
the smartphone and tablet offering
ground-breaking new service platforms)
and the development of increasingly
sophisticated and attractive mobile
services. However, there still exists a
dichotomy between the developed and
developing worlds, with affordability
being a key barrier to the rollout of
many complex and high-end services in
emerging markets.
Executive summary
1

8—9
It is in the mass market sector of retail
banking that most propositions in the
mobile financial services landscape are
currently located, with the service prop-
ositions grouped into two categories.
M-payment propositions are concerned
with the making of payments, whilst
m-banking relates to the management
of personal accounts. It is interesting
to note that mobile payments have
become particularly common in the
developing world where underlying in-
frastructure is not able to support other
forms of cashless payment.
In comparison to retail m-banking,
corporate banking solutions have been
slow to develop yet still appear to have
huge potential. The 24/7 nature of
mobile applications, user-friendly oper-
ating systems and inherent portability
should make them very attractive in the
fast-moving business world. Again, it is
important that consideration is given to
the interoperability between multiple
financial service providers within a busi-
ness if this proposition is to develop.
In the private banking sector, mobile
solutions are gradually being deployed
onto more advanced devices.
This has included both the development
of smartphone technology and the
take-up of tablet devices which, with
their greater screen size and enhanced
graphics, have the potential to improve
the high-end customer experience. With
this ongoing technological development
and the adoption of these new tech-
nologies, it is likely that private
m-banking solutions will become the
norm in the future. For early-movers in
the financial services industry, the incor-
poration of these services may prove to
be a key differentiating factor between
competing institutions.
However, a direct return on invest-
ment is difficult to quantify, since most
m-banking services are offered free of
charge.
In order to be successful within the
competitive landscape, it is important
that players entering the mobile finan-
cial services market position themselves
correctly. It is important they under-
stand their clients’ needs, and seek to
develop an appropriate business case
that makes the most of the opportuni-
ties afforded by this fluid and emergent
sector. Ensuring a strong presence
in this area will be essential for the
long-term growth of financial service
providers and may represent an area in
which new market entrants could gain a
foothold.

The mobile platform’s
role in the financial
services landscape
2
1
Source: Datamonitor – Mobile
Payments.
2.1 The mobile platform’s coming
of age in financial services
Over the last two decades, the mobile
phone has morphed from a high end,
niche product to a ubiquitous proposi-
tion. This has enabled the widespread
growth of new mobile products, with
location-based services and increased
connectivity, which were previously
un-imaginable. However, until recently,
the success of many mobile-financial
services has been limited:
• As early as 1997, Barclays were offer-
ing customers access to their Bar-
claycard and Barclays bank accounts
on the move through a partnership
with Cellnet. Despite high initial
expectations, uptake was low and the
initiative was soon scrapped
• In 1999, MeritaNordbanking Group
launched the world’s first WAP
banking service in Finland. It enabled
customers to monitor account and
credit card transactions, perform
account-to-account transfers and pay
bills. However the low maturity of the
underlying technologies with regards
to data transfer speeds and screen
sizes limited the initiative’s success
• In 2000, a domestic m-payment
scheme was launched in Spain with
participation from all mobile op-
erators and the majority of financial
institutions. Unfortunately, Mobipay
saw very limited uptake and low
growth despite a successful pilot in
2002 and by 2008 the scheme was
processing only 2000 transactions a
day. It was finally ended in 2009
• In 2000, Paybox was launched as an
m-transfer and m-payment solu-
tion, backed by Deutsche Bank and
a number of strategic partners (e.g.
Oracle, Lufthansa Systems, IBM,
Mobilkom Austria). Initial results
were promising but it failed to gain
traction and by 2002 the consumer
facing m-payment solutions division
was closed
Despite the limited success of these
services, early market forecasts were
bullish, repeatedly stating that mobile
financial services were on the cusp of
spectacular growth. There were some
firms that supported this idea, such as
NTT Docomo in the Japanese market,
which had acquired 7 million users of
its WAP m-banking services by 2000.
However, examples like this were still
the exception and the predictions of
an m-payment market of €30 billion by
2002 failed to materialise. This predic-
tion was subsequently re-adjusted to
€30 billion by 20051
, though even this
greatly overestimated the actual market
size.

Growth in value ($bn) and volume (bn) of m-payments
and m-banking transactions
mBanking transactions and user numbers
10—11
Note: (1) Transactions defined
as informational messages
(e.g. balance enquiries) and
transaction requests (e.g. fund
transfers & bill payments).
Source: Informa, Value Partners
analysis.
Remote mPayments
Local (NFC) mPayments
Domestic Money Transfer
International Money Transfer
1,186.6
Global mPayments
transactions value ($bn)
Global mPayments
transactions number (bn)
90%
63%
97%
137%
247%
40%
100%
129%
143%
69%
1,898.9
359.2
2014
862.4
181.0
2013
473.5
110.9
2012
155.1
74.2
2011
162.9
+61%
+39%
53.1
2010
104.5
39.8
2009
70.9
29.8
2008
6,442.6
2015
CAGR
08-15
mBanking number of users
Access / operation
Year-on-year growth
Average number
of access /
operations per user
Global mBanking
number of
transactions1
and user
number (m)
1,000
1,400
1,200
800
600
400
200
150,000
250,000
200,000
100,000
50,000
40
20
60
80
100
120
140
167,62
126.9
2015
138,37
117.7
2014
105,20
107.7
2013
71,900
97.6
2012
43,300
88.9
2011
23,200
83.2
2010
11,500
80.6
2009
7%
5,400
80.6
2008

By 2009 however, with the improve-
ments in mobile technologies, m-
payments had begun to deliver the
growth that had been forecast in the
early 2000s with $45 billion of trans-
acted revenues and strong year on year
growth rates. By 2011, m-payments had
become a strong revenue stream with
estimated revenues of $1.6 billion in
2011 across the mobile money industry
globally.
Two solutions in particular are behind
the segment’s growth:
1. Remittance payments
(i.e. international m-transfers)
2. Proximity m-payments
(e.g. payments relying on Near Field
Communication technology)
Both of these have compound growth
rates of over 120% (2008-12), as shown
below.
Global m-transaction
value ($bn)
Source: Informa, Press clippings,
Value Partners Analysis.
Source: Press clippings, Value
Partners Analysis.
100%
Global revenue
for mobile money
industry ($bn)
Growth of m-transactions
by service
(CAGR 2008-2012)
36%
48%
124%
146%
Remittance Proximity m-payment M-banking Remote m-payment
Growth driven
by immigrant’s
remittances
to developing
countries
Growth mainly
driven by developed
countries
Highly dependent
on the uptake of NFC
handsets
2008 2009 2010 2011
163,4
97,9
45,2
29,0
78%
2008 2009 2010 2011
1,6
0.8
0,5
0,2

12—13
2.2. The competitive landscape
Despite its long history of development,
the mobile money industry still shows
characteristics typical of a nascent
industry. It is highly fragmented, both
globally and regionally, and even now
remains largely unregulated. However,
it is still possible to distinguish three
forms of service provider from the vari-
ous market players:
• Banks: financial service providers
expanding channels for service de-
livery through the addition of mobile
as a stand-alone or complementary
channel in addition to their existing
distribution channels
• Mobile network operators (MNO):
mobile telecom providers enter-
ing the financial services space by
providing a payment or deposit
functionality
• 3rd party providers (e.g. Google,
Amazon, PayPal): internet services,
e-commerce and internet wallet pro-
viders entering the financial services
space on the basis of an web-based
value proposition
Both MNOs and banks have also ap-
proached the market jointly in the form
of a MNO or bank-led consortium.
Example of mobile financial services propositions
Bank
In 2007, Bank of Ameri-
ca introduced a browser
based service allowing
customers to access
account information,
transfer funds, pay bills,
etc; subsequently the
offering was extended
with SMS banking
and smartphone apps
MNO
In 2007, the five UK
MNOs launched Payforit
as a joint venture, based
on the Vodafone m-pay
system. The scheme
enables customers to
pay for digital content
and services below £10,
via mobile phone, with
the cost added to their
phone bill or deducted
from their credit
Third party providers
In 2005, PayPal intro-
duced PayPal Mobile
allowing customers
to transfer funds
and pay for goods
purchased via eBay,
relying on either a
proprietary app or SMS
based transactions

2.3 The market drivers
2.3.1 Mobile service penetration
Globally, mobile services have become
ubiquitous across developed and
developing countries. It is not unusual to
achieve nationwide mobile penetrations
well above 100%, where consumers
have on average more than one mobile
phone per person.
2.3.2 Device and infrastructure
evolution
Since the first “brick” mobile phones of
twenty years ago, devices and their sup-
porting infrastructure have developed
radically. These developments have
enabled huge amounts of processing
power to be incorporated within mobile
devices and groundbreaking steps to be
made with regards to the user interface,
such as touch-screen and colour tech-
nologies.
Source: World Cellular
Information Service, Value
Partners Analysis.
Mobile service penetration (% population)
Northern America Latin America
2000
2000
2002
2002
2004
2004
2006
2006
2008
2008
2010
2010
150% 150%
100% 100%
50% 50%
0% 0%
Asia Pacific Africa
2000
2000
2002
2002
2004
2004
2006
2006
2008
2008
2010
2010
150% 150%
100% 100%
50% 50%
0% 0%
Western Europe Eastern Europe
2000
2000
2002
2002
2004
2004
2006
2006
2008
2008
2010
2010
150% 150%
100% 100%
50% 50%
0% 0%

14—1414—15
Illustration of smartphone technology
North America
39%
Western Europe
34%
Eastern Europe
13%
Latin America
9%
Asia Pacific
6%
Africa
3%
Source: World Cellular Information Service, Informa, Value Partners analysis.
Smartphone penetration (%), 2011
Smart-phone penetration
differs widely in the region, e.g.
• Korea 45%
• Japan 24%
• China 6%
• India 2%
SMS
A simple way to communicate
payment instructions over
the mobile phone network,
this channel is available in
places with only basic mobile
infrastructure
Voice channel
Data can be modulated onto
audio frequencies and sent
down a mobile phone’s
voice channel to a payment
processing centre
Touch screen
Authentication made easier
by customers signing the
screen with their fingertips
High-resolution screen
This technology allows pay-
ment system to relay high-
fidelity visual information,
such as bar codes, to a reader
SIM card
Can be used to store the
“secure element” (SE) of a
payment system.
The SE is a digital ID of the
payer which is stored in such
a way that it cannot be com-
promised, and can also include
account data from several
different banks, transport
providers or loyalty cards.
Some phones have separate
slots for two SIM cards: one
serving the normal require-
ment to identify the phone to
the network, the other provid-
ing mobile wallet functionality.
The SE can alternatively be
stored on an SD card
Enhanced 3G connectivity
The increase in usage of
smartphones, and the spread
of 3G networks, make mobile
phones a further channel
through which consumers
can access the internet, and
their banking facilities. Banks
provide their own mobile
banking apps
Camera
High-resolution camera ena-
bling the initiation of transac-
tions through imaging instead
of POS transaction capture
(e.g. of a credit card)
Embedded NFC
Near-field communication
technology built-in to a phone
allows the transfer of pay-
ment data between a phone
and a reader, or between two
phones
External NFC
Phones which aren’t made
with NFC technology built-in
can still take advantage of the
feature by inserting a device
into the microSD port
External hardware
Using its input ports, a smart-
phone can be converted into
a payment card processor
at a fraction of the cost of pur-
chasing a conventional card
terminal

In particular, however, the development
of radio and network technologies has
greatly improved mobile bandwidth and
the available download speeds.
The first m-banking services in Europe
were deployed over the slower 2G
network (i.e. 9.6 Kbit/s)2
, whereas the
latest 3G networks are competitive with
fixed-line networks with speeds of up to
52Mb/s (e.g. on HSPA+)3
.
The launch of the iPhone in 2007 began
to show the potential of new technolo-
gies using these networks and launched
an entirely new mobile segment, the
smartphone. This new type of device
has proved extremely popular, with over
900 million users estimated worldwide
at the end of 20114
, resulting in a highly
diversified market with the entrance of
other handset manufacturers. These
new devices’ capabilities have enabled
new features such as ‘apps’, which
allow smartphones to become gam-
ing devices, organisers, media players,
cameras and location based-services.
Perhaps the most beneficial capabil-
ity of smartphones, however, is the
improved mobile web browsing experi-
ence available which has kept consum-
ers permanently “connected”, thus
intensifying their online behaviour.
Smartphone users now expect and re-
ceive instant access to information and
services, which has further enhanced
the mobile’s role as a key customer
interface and driven an increasing
number of activities to be available.
Financial service providers, along with
a wide variety of other industries, have
taken advantage of these develop-
ments to broaden the range of services
provided, driving greater growth in the
mobile money market.
They have been supported in this ex-
pansion of channels by service platform
providers such as Broadridge5
, who
provide support for emerging channels
such as phones and tablets an integral
part of their customer communications
package.
It is important to note that the uptake
of smartphones has not been homo-
geneous across different regions,
with developed countries leading the
way. This has been driven both by the
phones’ affordability, or lack thereof,
and the telecommunications infrastruc-
ture requirements of a smartphone.
Smartphone penetration therefore
varies from 39% in North America and
34% in Western Europe to below 10%
in Latin America and Asia, and drops
to 3% in Africa. This pattern should be
kept in mind for the later discussion
with respect to the provision of mobile
financial services in developing coun-
tries.
It is forecast that the smartphone’s
gradual reduction in price, together with
economic and infrastructure develop-
ment, will deliver higher penetration
across all regions in the future (e.g.
estimated penetration in Latin America
is 40% by 2016)6
. This should allow a
much larger user base to access more
advanced, content-rich, round-the-clock
services and offer ever increasing op-
portunities to mobile payment providers.
2
Press clippings; Value Partners
Analysis.
3
Deutsche Telekom.
4
IDC 2011.
5
Broadridge 2012.
6
Informa; Value Partners
Analysis.

16—17
Virtuous driver cycle
• Strong mobile penetration
of over 100% in mature
markets, with less
developed markets
rapidly catching up
• Short product cycles,
with each new launch
introducing new features
and functionalities
• Smartphone, proving
a leap forward in mobile
phones’ capabilities
• Network speed
dramatically improved
from 9.6 kbit/s (2G)
to 7.2Mb/s (3G)
• Solution evolution
from simple account
checking using WAP,
to smartphone app
allowing trading,
ATM search, etc.
• Key technology
advancements enabling
mobile financials
solutions development
and deployment
Mobile service
Penetration
Device and
infrastructure
evolution
Mobile financial
services’
development
Customer trust
and awareness
Source: Value Partners analysis.

However, smartphones are not the only
form of mobile technology presenting
opportunities in the mobile payment
space. Since the launch of the iPad,
tablet based technologies have de-
veloped rapidly by combining typical
smartphone features (e.g. portability
and touch screens) with those of laptops
and PCs (e.g. larger screen and more
advanced multimedia capabilities). The
format has proved popular with con-
sumers and over 60 million devices were
sold in 2011 by a variety of manufactur-
ers7
, with bullish forecasts predicting
sales to reach over 300 million by 20158
.
This is likely to close the gap between
traditional PC and tablet sales and will
result in a more diversified use of tech-
nology by users in the future. Smart-
phones are still predicted to continue to
grow strongly though, with one study
forecasting sales of 982 million in 20159
.
Tablets represent a great opportunity
for mobile banking, particularly with re-
spect to account management. Service
providers are able to either extend their
existing smartphone app into a wider
screen format or develop new bespoke
applications (e.g. tablet banking apps),
which take advantage of an increased
screen size and the ability to render
richer media content. These opportuni-
ties have been leveraged in particular
within the private and corporate bank-
ing industries and as an enabler in some
branch redesign initiatives.
2.3.3 Mobile financial service
development
The first two drivers of mobile financial
services – mobile service penetration
and device and infrastructure evolu-
tion – are fundamental, but would not
work in isolation. They are part of a
virtuous circle which includes, as the
third component, the availability and
quality of mobile financial services
themselves. Users’ experience and con-
sumers’ adoption play a significant role
in driving or hindering uptake, as was
particularly evident in the early stages
of development in mobile banking serv-
ices. Consumer trust and awareness, as
well as the value of the available solu-
tions, are interrelated factors integral
to the sophistication of mobile financial
services.
These three drivers have been covered
individually in the previous section of
the report but to understand the recent
rapid development of mobile finan-
cial services, especially in developed
economies, these have to be taken into
account within a mutually reinforcing
relationship. At the core of this reinforc-
ing cycle is the increased functionality
of handsets and enhanced customer fa-
miliarity with, and propensity to adopt,
mobile financial services.
7
IDC 2011.
8
Gartner.
9
IDC2011.
2010 2011 2012 2013 2014 2015
100
200
300
400
500
600
0
Forecast tablet sales (million devices)
Pcs
Tablets
Source: Gartner 2011.

18—19
2.4 The developed and developing
world dichotomy
The scarcity of appealing financial
products to populations with smaller
incomes has led to a large proportion of
the population of developing countries
to be unbanked or underbanked10
.
As previously illustrated, the developing
world is also lagging behind developed
economies in the uptake of newer mo-
bile devices (e.g. smartphones and tab-
lets), with the consequence that mobile
financial services in these geographies
are in most cases delivered using older
technologies such as SMS and WAP.
This is due to very different socio-eco-
nomic circumstances from the devel-
oped world, with the vast majority of
the population living on small incomes
and the cost of the latest generation
of mobile devices often unaffordable.
In the developing world, for example,
although mobile platforms have been
suggested as an alternative to POS
terminals, many merchants have no
demand for such services given that the
clients they serve do not have access to
cards or online payments.
Connectivity issues and the lack of
a reliable electricity supply are also
challenges to be taken into account
within the context of a developing world
where populations are often dispersed
in rural areas.
These issues, however, have not been
a barrier to the development of mobile
payment value propositions. The lack
of penetration and limited reach of
banking infrastructure has driven the
uptake of mobile financial services and
payment alternatives, often offered
not by banks but instead by telecoms
operators.
10
“Half the World is Unbanked”
Financial Access Initiative
October 2009.
The potential cost savings of a
transition to a ‘cash lite’ economy
are significant, with a recent
World Bank Report finding that
governments in developing
economies could cut up to 75% of
transaction costs through electronic
payment programmes.

11
World Bank, April 2012,
Measuring Financial Inclusion:
The Global Findex Database.
12
Better Than Cash Alliance, 2012,
‘The Journey Towards Cash Lite’.
The penetration of “candy-bar” mobile
handsets together with a network of
telecom shops and small retailers (who
are recruited as a point of deposit and
disbursement) has enabled the develop-
ment of mobile payment success stories
such as M-Pesa. In developing countries
mobile financial services have helped to
fill the space left by insufficient banking
infrastructure for low income popula-
tions.
In doing so, they have supported
bottom-up economic growth by offer-
ing the ability to pay electronically at a
distance11
. The potential cost savings of
a transition to a ‘cash lite’ economy12
are
significant, with a recent World Bank
Report finding that governments in de-
veloping economies could cut up to 75%
of transaction costs through electronic
payment programmes.
The issues discussed above have led to
two different development paths for
developed and developing economies
with regards to retail mobile financial
services, with the models emerging in
the developed world not replicable in
the developing world and vice-versa.
It should be noted that this difference
is not applicable to mobile financial
services within the context of corporate
and private banking, since large cor-
porations and wealthy individuals have
similar access to banking infrastructure
and services regardless of their nation-
ality or operations.
Source: World Bank 2011,
Ericsson 2012, Value Partners
Analysis.
The banked vs unbanked
1.1 bn
more developed
5.1 bn
less developed
reachofbanks(44%)
reachofmobile(85%)
0.7 bn
least developed

20—21
Consumer survey, 2011: “Which of the following do you trust
for handling mobile payments?”
Sources: 2011 Consumer Trends
Survey, Fiserv, Inc., August 2011.
40%
35%
33%
23%
15%
9%
8%
7%
3%
8%
My Bank or Credit Union

Retail banking
3
13
Source: TNS.
3.1 Segment overview
Mobile financial services have been
developing for nearly 20 years, but re-
cently the speed of development seems
to have increased significantly. Unlike
private and corporate banking, where
the application of mobile is the same
regardless of geographical location and
depends instead on the sophistication
of the services and channels of the sup-
plying bank, within the context of retail
banking it is important to distinguish
between developed and developing
economies. The former already have a
high level of financial service penetra-
tion and advanced mobile devices,
whilst devices in the latter are usually
more basic and may act as a low-cost
substitute for financial services with
limited reach.
The mobile retail banking landscape
may also be divided according to the
type of service offered, whether it al-
lows the management of one’s entire
portfolio of financial services, as in the
case of m-banking, or whether it simply
enables one-off payments, as in the
case of m-payments. The latter of these
is more prevalent in the developing
world.
3.2 M-banking propositions
M-banking was one of the first finan-
cial services offered on mobiles (e.g.
Barclays’ and Cellnet’s collaboration in
1997) but it did not prove revolutionary
for either customers or banks.
However, over the last few years the use
of m-banking has increased dramati-
cally.
The number of consumers using
m-banking has increased significantly
in recent years and in some countries
has more than doubled between 2010
and 2011: from 10% to 20% in the UK;
8% to 20% in Sweden; and 11% to 22%
in the US13
.
The rise of the smartphone and the
increased availability of m-banking solu-
tions have been key drivers sustaining
this growth. What is actually avail-
able to customers, however, will vary
by country and by bank. M-banking
services have generally fallen into two
categories: information services and
transaction services.
Information services were the first to be
implemented, since they rely on easily
accessible data (e.g. ATM network data
using ISO8583) and pose little security
risk. The services’ breadth continued to
expand and now typically includes:

22—2222—23
iPhone app iPad app
Banking
Insurance
Investments
Information/Advice
ATM Locator
Deposit@Mobile
Deposit@Home
Get account balances
Loan Calculator
Pay bills
Transfer funds
View account history
Accident Checklist
Get an auto insurance ID card
Rental Car Locator
Roadside Assistance
Pay your premium
Review coverage and discounts
View past statements
View policy details
View real-time stock quotes
View market activity
Place a trade
Relevant articles
Informative videos
The USAA iPhone and iPad offering differentiation

• Account statements
• Account activity alerts (including
suspected fraud)
• T&C’s (credit card, loan or insurance
policy statements)
• Status of cheque clearing
• ATM and branch location
Transaction services followed later
because of their more complex nature,
and a typical offering can include:
• Mobile prepaid account recharging
• Micropayment handling (for remote
and proximity payments)
• NFC credit, debit and prepaid card
payment processing
• Payment initiation (e.g. credit trans-
fer)
A number of different technologies can
be used for delivering these services,
ranging from text based technologies
(i.e. SMS and USSD - Unstructured
Supplementary Service Data) com-
patible with all GSM phones, to Java
applications for low end phones and
browser-based services and apps for
smartphones.
Services are mostly launched through
collaborations between partners but
there are exceptions to this model that
forgo the mobile operator or the finan-
cial institution, such as:
• Mobilkom Austria acquiring a bank-
ing licence
• Rabobank and Bankinter launching
MVNO services
The potential convergence between the
mobile telecom and financial services
industries is not a new theme. Recently,
however, technological developments
such as the enablers mentioned in sec-
tion 2.3 of this report, cloud computing,
the growth of a number of new internet
financial service entrants, regulation
(e.g. the ‘Payment Services Directive in
Europe’) and the uptake of mobile as a
financial service channel, have com-
bined to trigger actual convergence.
Tablets, on the other hand, are a much
more recent development within the
telecoms industry. In addition to us-
ing the tablet as an additional access
device for internet banking, m-banking
has started to leverage the tablet by de-
veloping device-specific apps. However,
there has so far been little differentia-
tion between tablet and smartphone
in terms of m-payment and m-transfer
solutions.
Information
services
Payments
& Transfers
The potential convergence
between the mobile
telecom and financial
services industries is not
a new theme.

La Caixa’s first foray into m-banking occurred in 2001 with the launch of their
mobile banking portal. Since then, La Caixa has continued to develop the mobile
channel, which received a boost following the introduction of the smartphone.
At the end of 2009, it launched its own app store to serve all available mobile
platforms, and to date offers over 50 apps covering an extremely broad range
of banking and value added services (e.g. banking, investments, m-payments,
ticketing). The bank’s ambition is to cater to the differing needs of their customer
base (e.g. students, pensioners, investors, migrant workers).
Moreover, increasing the number of apps not only extends the offering without
cluttering the key m-banking services, but also allows customers to pick and
choose according to their needs, therefore customising their own m-banking app
portfolio and experience. The apps making up the portfolio can be aggregated
under a single umbrella through the “la Caixa” app or downloaded individually.
Example of available apps:
24—25
Case Study: CAIXA
banking apps
Cuentas
Account statement,
transactions and
transfers
Tarjetas
Credit card state-
ments and transac-
tions
Ingreso de Cheques
Remote cheque
depositing
CaixaGiros
Cross-border
remittance
Alerta Particulares
SMS transaction
alerts
investment & pension
Mis Valores
View stock’s portfolio
valuation
Bolsa Abierta
Stock market informa-
tion and acquisition
Fondo de Inversion
View investment
funds portfolio per-
formance
Planes de Pensiones
View pension fund
and make contribu-
tions
payments
Recarga Targeta
Prepaid credit card
top up
Recarga de moviles
Mobile phone credit
top up
Transfi
Mobile to mobile
m-transfer
Pago de matriculas
Payment of university
tuition fees
Pago de Recibos
Bill payment
other services
Localizador de
oficinas
ATM & Branch locator
ServiCaixa
Mobile ticketing
iCaixaForum
Info on Barcellona and
Madrid cultural events
Blog de Caixa
Caixa’s corporate
blog
Estudio y Analisis
Economico
View Caixa’s
economic research
la Caixa
Caixa app bundling

For example, at the start of 2011 the
United Services Automobile Association
(USAA), released a native m-banking
tablet app offering a different set of
functionalities from the smartphone
apps. Moreover it was designed to take
advantage of the tablet’s extra features,
in particular its video capabilities, and
to match different tablet-specific usage
patterns. Whilst the iPhone app exclu-
sively offered more mobile-orientated
services such as an ATM locater and
Roadside Assistance application, the
iPad provided more detailed content
such as statements and the viewing of
complex insurance documents. USAA
also introduced an information section
in its iPad application that features arti-
cles, stories, and interviews with USAA
financial planners, covering a wide
variety of topics including investing,
insurance and buying a house.
The most innovative banks have moved
beyond simply transposing online bank-
ing onto mobile and have developed a
distinct mobile channel. For example,
BBVA in Spain recently launched a
series of native apps (i.e. developed
specifically for the iOS, Android and
BlackBerry environments), which allow
mobile customers to access a broad
range of banking functionalities. The
established information and transac-
tion services have been complemented
with value added services (e.g. an ATM
finder) which aim to strengthen the
bank-customer relationship. These
include “Tu cuentas”, its mobile personal
finance tool, aiming to assist custom-
ers in better managing their personal
finances.
Based on the consumer’s profile and
use of m-banking, “Tu cuentas” offers a
selection of personalised suggestions;
for example, practical financial tips, a
shortlist of the most liked products and
information on financial products and
services potentially of interest.
Another notable example is La Caixa,
Spain’s first retail bank, which has
become one of the leading m-banking
providers worldwide through their in-
novative adoption of m-banking14
:
• 2 million m-banking customers,
equivalent to 20% of their customer
base
• Over 5% of customers using mobile
as their primary banking channel
• Over 40 million m-banking transac-
tions conducted in 2010
14
Source: La Caixa.

26—27
3.3 M-payments propositions –
Developed World
Mobile handsets are versatile devices
offering a number of features that
are being leveraged across a number
of variations of business model (e.g.
bank-centric, mobile-centric, 3rd party-
centric, bank-led partnership, etc),
leading to vast range of different value
propositions.
Some of these are based on different
ways to capture, authenticate and settle
a transaction. Such mobile payments
are expected to become the most im-
portant retail channel by 2020 – in the
form of mobile POSs in-store, contact-
less capabilities and location-based
technologies – with 44% of UK retailers
expected to offer contactless payment
technologies by next year alone15
.
15
MasterCard 2012.
Example of business model variations
Financial institution centric
Financial institution acquires
a mobile operator licence or
becomes a MVNO in order to
offer the service autonomou-
sly from an MNO
3rd party provider centric
• Business is led by third
party payments service
provider (PSP)
• Decouples operators and
banks to allow for cross-
operator and cross-bank
service propositions
Mobile network operator led
• Mobile network operator
acquires a banking licence,
and stores all deposits
itself
• MNO owns all the
infrastructure necessary
for operation, such as
deposit-taking agencies
and NFC terminals
Established players partne-
ring (or acquiring) 3rd party
providers to integrate the
offering/ technology into
their payment processing
infrastructure
Established players partne-
ring (or acquiring) 3rd party
providers to integrate the
offering/ technology into
their payment processing
infrastructure
A traditional bank uses
the mobile phone as an
extension of its conventio-
nal branch based banking
services
An MNO partners with a
bank, and benefits from
the bank’s credibility and
expertise
Third party providers
partnering with mobile
operators or leveraging
their infrastructure

The great variation of possible busi-
ness models has led to a diversification
of value propositions with consequent
challenges in terms of critical mass and
standardisation. This variation has also
led to significant market fragmentation
and a lack of interoperability.
To address these challenges, which
could hinder the development of the
m-payment space, industry associations
and stakeholders are collaborating to
set common standards. The European
Payment Council (EPC) is working with
key groups to establish the necessary
standards and business rules to lever-
age the full potential of the mobile
channel for the initiation and receipt
of SEPA payments in an interoperable
environment.
To progress its work in this area, the
EPC has established three formal rela-
tionships with GlobalPlatform, GSMA,
and Money Forum. In February 2012 it
also published its second white paper
on mobile payments for public consulta-
tion16
and held a stakeholder review for
mobile payment standards.
Furthermore, the European Commission
has published a Green Paper to launch
a consultative process with stakehold-
ers to improve integration in the card,
internet and mobile payments market in
Europe17
.
The Groupe Speciale Mobile Association
(GSMA), meanwhile, has published a
number of papers on this topic and has
an internal group investigating mobile
payment standards18
.
In February 2012 at the GSMA World
Mobile Conference, Visa announced two
new partnerships with Intel and Voda-
fone. The Intel partnership is a new mul-
ti-device, multi-year partnership aimed
at developing mobile commerce solu-
tions for Intel Atom-based smartphones
and tablets. Additionally, Intel’s Smart-
phone Reference Device solution will be
certified for use with Visa payWave and
integrated with NFC technology. This
will enable turn-key implementation
for Original Equipment Manufacturers
delivering NFC-enabled smartphones.
The second partnership aims to develop
a Vodafone branded proximity payment
solution (based on NFC technology)
enabling its customers to pay for goods
and services using their mobile phones.
The proposition would be based on a
Visa prepaid account and offered to
consumers in partnership with Visa Is-
suers. The main challenge for any player
aiming to take mobile financial services
to the wider consumer audience is the
significant number of different devices
across different operating systems.
16
EPC, February 7th 2012,
White Paper: Mobile Payments
(2nd edition) (www.european-
paymentscouncil.eu).
17
European Commission, January
2012, ‘Towards an integrated
European market for card,
internet and mobile payments
(Green Paper)’.
18
GSMA, April 11th 2012, ‘GSMA
Europe Response to the
European Commission Public
Consultation on the “Green
Paper – Towards an integrated
European market for card,
internet and mobile payments”.

28—29
MasterCard, meanwhile, was one of the
first to sign up with Isis, the mobile pay-
ment consortium backed and supported
by three of the four biggest US mobile
network operators. It has also partnered
with Google Wallet, an NFC android app
that stores a virtual version of a physi-
cal MasterCard card and can be used
at any of the hundreds of thousands of
PayPass (an NFC acceptance terminal
rolled out by MasterCard) acceptance
locations. The functionality of these
terminals looks set to increase in the
future with the release of PayPass SDK,
a tool kit for developers to integrate
Android and Blackberry applications
with MasterCard-approved contactless
terminals19
.
It is not only Android applications that
are able to make NFC transactions. The
new Nokia Lumia 610 NFC smartphone
has an integrated NFC solution included,
supported by INSIDE Secure, which
runs on the Microsoft Windows Phone 7
platform.
This is one of the first NFC enabled de-
vices that is compatible with the Micro-
soft Windows Phone operating system,
and shows how despite fragmentation
in the mobile software market the de-
mand for payment solutions, especially
NFC, is allowing such integration issues
to be overcome.
The development of applications or
mobile web pages requires a sizeable
level of ongoing investment. This is
particularly the case in the retail market,
more so than the private or corporate
banking space, where the nature of
the service and the size of the poten-
tial audience offer the opportunity to
leverage a one platform only approach,
especially given the lower margins per
customer.
In the current landscape there are
proprietary applications that have been
developed and are used on an exclusive
basis by single players (e.g. M-Pesa) as
well as multi-device platforms de-
veloped by technology providers for
financial services operators or telecom
companies.
19
MasterCard 2012.
Possible approaches to manage the transaction
Authorise /
authenticate
Offline PIN
Online PIN
SMS
Token
Biometrics
Call
...
Capture
NFC
SMS
Web / WAP application
ATM
POS
Call
...
Settle
Mobile Prepaid
Mobile Wallet
Post paid
Phone bill
Card linked
Current account linked
...

Within this context, the retail mobile
banking and payment landscape
in developed economies has a pace
of development that is more in line with
online start-ups than a speed typical
of the financial services industry.
There is a continuous flow of announce-
ments and product launches fuelled by
the expectation and hope that mobile
will provide the means of replacing cash
or incumbent payment methods.
For example, in 2012 alone, a series of
new initiatives has been announced:
• “Monitise and Visa launch ground-
breaking new mobile payments
platform in India”
• “Visa and Samsung Reveal Mobile
Payments Application for the London
2012 Olympic and Paralympic Games”
• “Banca Intesa Sanpaolo to conduct
mobile payment trials”
• “Sybase 365 and Telefonica Expand
Mobile Financial Services With In-
novative Mobile Wallet”
• “WorldPay offers BOKU as a mobile
payment method to its global mer-
chant network”
• “Accumulate launch mobile merchant
app”
• “Groupon announces launch of
Groupon Payments™, a mobile-based
payments service backed by a guar-
antee to be the lowest cost option for
the company’s merchants to accept
credit cards”
• “Oracle adds mobile POS to retailer
EFTPOS line”
• “Fiserv Launches SpotPay Mobile
Payment Solution”
This highly competitive landscape,
with little indication of the outcome,
has led established payment proces-
sors, such as Visa and MasterCard,
to hedge their bets and to invest in a
broad range of initiatives to ensure their
long term presence in the segment. No
established payment provider wishes
to “do another PayPal”, whereby the
traditional payment solution providers
left a gap in the e-commerce market,
allowing PayPal to find an innovative
niche from which it has developed into
a leading online payment provider, with
a net total payment volume of $119 bil-
lion in 2011.

30—31
• Fundamo – Visa acquired Fundamo, a specialist mobile financial services
provider to network operators and financial institutions in developing economies,
for $110 million
• PlaySpan – Visa acquired PlaySpan, a virtual goods monetization platform,
for $190 million
• Monetise – Visa Europe invested £24.7 million in Monetise to acquire a 8.8% stake
in 2011, following Visa’s lead who had acquired a 14.4% stake in 2009

• mFoundry – MasterCard co-invested with Intel Capital in mFoundry, joining existing
investors Motorola and FIS
• Joint venture with Telefonica (50-50) in Latin America to develop mobile financial
solutions in 12 Latin American countries, using Smart Hub Inc. as its mobile
payment processing solution
• MasterCard has partnered with Boku, an online payment processor, to allow
it to make use of PayPass technology into which it has invested heavily

• Payfone – Amex, with Verizon Investment and Rogers Comms, participated in latest
fund raising of $19 million
• Sometrics – Amex acquired virtual currency company Sometrics, allegedly for $30
million
• In late 2011 Amex announced a multi-year commerce initiative, with plans to invest
$100 million in mobile payments suppliers
• Zetawire – In 2010 Google acquired a small stealth startup focussing on mobile
payments, which had been granted a patent for “mobile banking, advertising,
identity management, credit card and mobile coupon transaction processing”
• TxVia – Acquisition of payment technology company that supports the manage-
ment of more than 100 accounts to boost its Google Wallet venture
• card.io – PayPal solidified pre-existing partnership in July 2012 through acquisition
of card.io, a company that allows develops to capture payment card information
using a smatphone’s built-in camera
• M-Com – In 2011 Fiserv acquired M-Com, with which it had been in partnership
since 2008. The two companies jointly developed Mobile MoneyTM a customer
care and transaction reporting service
• CashEdge – Fiserv paid $465 million for company specialising in P2P and small
business payments
• Agreement with Intelligent Environments, a firm specialising in mobile and online
banking software, which allows TSYS’ European customers to view their credit card
transactions through their smartphones
• Partnership with Korea’s SK C&C, who offer contactless mobile services,
now allows a set of turnkey mobile services to be used by US banks
• Agreement with CPNI Inc., an IMB Business Parter, states that Prosa will provide
processing backbone for CPNI’s Phone Authorized TransferTM mobile payment
solution
Recent investments made by established payment processors and other
potential market players (selected examples, non-exhaustive)

3.4 M-payments propositions –
Developing World
In the developing world, the deployment
of mobile financial services is generally
mobile operator-led (see for example,
the recent launch of a mobile wallet
in Nigeria by Etisalat), and has mainly
focused on m-transfer solutions, since
demand for these is much greater than
for bank account management capabili-
ties. This demand arises mainly from
internal economic migrants who have
limited means to transfer funds because
of a low penetration of banking services
and have previously been forced to rely
on unreliable informal channels.
Mobile financial services, with their near
ubiquitous reach (i.e. mobile phone pen-
etration coupled with an extensive top-
up agent network), and reduced transfer
costs, have enabled mobile operators to
launch very successful m-transfer solu-
tions such as M-Pesa.
M-Pesa has seen extraordinary growth
since its launch in March 2007: as of
September 2011 it has been adopted by
nearly 15 million customers (correspond-
ing to 67% of Kenya’s adult population)
with around 27,000 agents countrywide
and processing transactions equivalent
in value to 20% of Kenya’s GDP20
. Moreo-
ver, in 2011, M-Pesa generated $141 mil-
lion in annual revenue (which accounts
for 12.4% of Safaricom’s total revenue).
The agents’ network is a fundamental
aspect of the developing world m-
payments business model; an extensive
countrywide network is required to
enable the transfer of physical cash to
and from electronic accounts. Its deploy-
ment requires considerable investments,
favouring incumbent mobile operators
who not only have direct access to
clients, but also have their “credit top
up” agent network. However, this initial
set-up hurdle can be mitigated by part-
nering with an existing organisation (e.g.
Western Union).
Although conditions may be ripe in
developing countries, the success of
m-transfer initiatives has been heavily
influenced by the domestic regulator’s
approach. Existing legislation is either
not applicable or inappropriate, since
it was designed for brick-and-mortar
operations. Countries with little or no
banking regulation on m-transfers have
seen the initiatives flourish (e.g. Kenya
and the Philippines), while in countries
like India, m-transfers have been hin-
dered by excessive regulations.
M-payments, with their improved ac-
cess and low transfer costs in develop-
ing countries, have the opportunity to
create a new market of more frequent
and lower denomination remittances,
thereby growing the overall transfer
market.
They also have implications for how
emergency relief is distributed, which is
of particular importance in the develop-
ing world. MasterCard and the World
Food Program (WFP) have recently
partnered, for example, with plans to
expand the WFP’s digital project so that
in the near future 30% of food vouchers
will be distributed to mobile phones or
banks, regardless of access to formal fi-
nancial services. This initiative has been
launched in conjunction with an online
donation mechanism located at check-
outs, demonstrating how electronic
payments have the potential to posi-
tively influence the entire emergency
relief value chain.
20
Source: Safaricom press
release - September 2011.

32—33
Safaricom (a subsidiary of Vodafone in Kenya) launched a MMT service in 2007
called M-Pesa, an electronic payment and value storing system. The service allows
M-Pesa customers to manage their accounts by exchanging cash for electronic
value (and vice versa) at a network of retail stores (i.e. agents). Available funds
can be transferred to other mobile phone users, even if they are not a registered
M-Pesa customer, or used to pay bills and to purchase mobile airtime credit.
These stores are paid a fee by Safaricom each time they exchange these two forms
of value on behalf of customers. Once customers have money in their accounts,
they can use their phones to transfer funds to other M-Pesa users and even to non-
registered users, pay bills, and purchase mobile airtime credit. All transactions are
authorised and recorded in real time using secure SMS and are capped at $500.
Only Safaricom subscribers can use the service to transfer money, but anyone who
receives the SMS, regardless of whether they are a Safaricom subscriber or not, can
cash in the SMS at M-Pesa agent outlets. Western Union has partnered with Safa-
ricom to enable users in 45 countries to use Western Union outlets to send money
directly to the mobile wallets of Safaricom’s M-Pesa subscribers in Kenya.
M-Pesa’s market uptake can be interpreted as the interplay of a number of fac-
tors. First of all, Safaricom enjoys a market dominance of around 80%, which has
permitted a rapid and widespread roll-out of M-Pesa enabling the payment system
to quickly reach critical mass in the market. Secondly, the M-Pesa initiative was the
recipient of a sizeable grant from the UK aid agency to trial mobile money services
as a way to increase financial inclusion.
Finally, M-Pesa’s service design was very well executed to deliver rapid adoption
and early capturing of the requisite network effects. These factors, combined with
the typical driving forces behind the growth of all mobile financial services, helped
M-Pesa reach a critical mass of customers rapidly, thereby avoiding the barriers to
growth that can afflict new payment systems.
Case Study: M-Pesa

3.5 Implications
Mobile retail financial services is an
industry characterised by a high and
growing degree of fragmentation, both
in terms of solutions and providers.
Breaching the critical mass threshold is,
therefore, the first obstacle to overcome
for a potential major market player.
This issue is compounded by the need
for seamless interoperability in the elec-
tronic payment space, especially where
physical infrastructure is required (such
as between NFC merchant terminals
and consumer devices). Ensuring that
platforms and solutions are interoper-
able is the obvious way in which to
address this challenge, however this is
something that cannot be done until a
degree of standardisation is established
and a number of dominant business
models emerge.
Competing m-payment solutions
must reach a critical adoption mass to
become mainstream payment meth-
ods, either within geographical areas
or a specific transaction environment;
however as start-ups they remain in the
vicious cycle of insufficient merchants
and customers. Without critical mass
it is difficult not only to gain market
traction but also to have a sustainable
business case.
There are many varieties of mobile
handset and their operating systems
change regularly (although in west-
ern markets iOS and Android have a
duopoly, with a 72% share of the US
market between them). This makes it
difficult to develop and maintain value
propositions that can be made available
to consumers regardless of their choice
of handset type or age of device or
mobile network.
Smaller players in particular should con-
sider the opportunities offered through
partnerships with large scale platform
providers, who could make the invest-
ments required to make their value
propositions available on a multitude of
handsets models and mobile platforms.
Within a highly fragmented market in
which players of different segments of
the value chain all wish to participate, it
is imperative to select the right partners
and collaboration mechanisms as well
as to assume the correct positioning.
In most segments, traditional financial
operators already offer non-mobile
services. Players pursuing mobile
strategies will have to surpass incum-
bents’ offering whilst appropriately
managing end-user perceptions of the
industry. This is often more difficult for
long-standing players in the industry
than new entrants. In particular, this
requires smooth delivery and execution,
a properly designed user interface and
robustness and reliability in a mar-
ket that, more so than corporate and
private banking, is partially dictated by
brand power and carries the commer-
cial risks and opportunities inherent in
social media and connected consumers.
Furthermore, while mobile financial
services may already fall within the
scope of existing retail regulations,
these have been devised for a more
traditional “brick and mortar” industry.
They are therefore potentially inad-
equate within the context of recent
technology developments, internet
growth and new telecom entrants.

34—35
Philippines
• M-transfer services were launched in the Philippines as early as 2000 by the two leading
operators, Globe Telecom (G-Cash) and Smart Communications (Smart Money)
• Smart Money, which was launched in 2000 in conjunction with Banco de Oro (BDO),
started life as “over the air” prepaid charges and eventually evolved into Smart Money21
.
The service allowed unbanked customers to have a pseudo bank account held on
their mobile phones, allowing P2P transfers as well as cash withdrawals and cashless
purchases at accepting shops

Cambodia
• WING is a Cambodian mobile payment company launched by Australia and New
Zealand Banking Group Limited (ANZ), which since 2008 has attracted over 350,000
customers to its P2P service; almost all Mobile operators and Microfinance Institutions
are able to connect using any mobile handset type
• ACLEDA bank launched a similar service a year later, in 2009, although the ACLEDA
Unity service allows only its own customers to carry out financial transactions;
the number of active accounts is around 50,000
• Recently ACLEDA has launched a solution for the unbanked – ACLEDA Unity Wallet –
that does not require a bank account, only a mobile phone

Africa
• MTN Group launched similar m-transfer services throughout Africa in 2009. As of 2011,
‘MTN Money’ had 5.7 million registered users throughout 12 different African countries
and had seen spectacular growth in countries with extremely low bank account
penetration; MTN Uganda recently reported over $200 million in transactions per month
• Visa has moved to further strengthen its position in the mobile remittance market in
emerging African economies through their acquisition of Fundamo, a provider of mobile
money and banking solutions to developing markets
• Other operators have also developed m-transfer services targeting developing
countries. The French operator Orange launched ‘Orange Money’ across eight different
African countries (Cote d’Ivoire, Senegal, Madagascar, Mali, Niger, Kenya, Botswana
and Cameroon) in 2008
• Wizzit, a division of the South African Bank of Athens, is a mobile payment and banking
service launched in 2004 and as of 2011 served over 400,000 people

India
• A number of different players in India, including handset manufacturers, banks and
national institutions have moved to enter the MMT space. Policy makers from India
visited Kenya to observe the uptake of Safaricom’s M-Pesa service in 2010, prompting
a change in policies and a subsequent flurry of entrants into the market
• Handset manufacturer Nokia invested in the American mobile transfer service Obopay
in 2009 and along with Union Bank of India launched a P2P MMT service called Union
Bank Money in March of 2011
• The Indian Department of Posts (DoP) and the state-owned Indian telecommunications
company BSNL, launched a competing MMT service in 2011
Examples of M-Transfer offerings in the Developing World

Private banking
4
21
World Bank – December 2006 –
‘M-remittances, Case study of
the Philippines’.
22
Money Management
Executive, October 2011
(www.mmexecutive.com).
23
PR Web, February 2012
(www.prweb.com).
Amongst all the sub-sectors of the
financial services industry, private
banking has remained one of the most
hesitant in adopting mobile technolo-
gies. Concerns about security and the
general impression that private banking
clients did not want a mobile-centric
relationship with their bank are often
cited as reasons for the industry’s slow
adoption of mobile banking22
. This is
despite the fact that the affluent, the
primary clients of the private banking
sector, have led the adoption of next
generation mobile and tablet devices23
.
Smartphones and tablets represent two
new client–bank interaction channels, as
well as an opportunity for private banks
to deploy services that offer high-qual-
ity user experiences to a segment that
is typically highly educated and techno-
logically confident.
Mobile is a particularly suitable chan-
nel for the more wealthy segments of
private banking since they often have
access to the most up-to-date ICT hard-
ware – but also provides a potentially
useful channel to deploy and enrich self-
service value propositions to the mass
affluent. This is a segment that requires
little servicing in order to be profitable
to providers as the mobile device may,
for example, provide the information
and execution services that would
otherwise be supplied by a dedicated
financial advisor.
4.2 Propositions
Private banks are now beginning to
provide their customers with smart-
phone applications. In fact, the majority
of private banks provide mobile access
to internet banking via smartphone
browsers – i.e. the smartphone is merely
an extension of the internet banking
platform – but most of these are not
designed to take advantage of mobile-
specific features, with less than a third
having features which are not available
on the bank’s website.
The current features of private banking
smartphone applications include:
• Account snapshots
• Access to market information
• Trading capabilities
Recently, Merrill Lynch Wealth Manage-
ment introduced a mobile application
available on Apple and BlackBerry
devices for their clients. The app allows
clients to: 1) view their portfolio hold-
ings and account activity; 2) transfer
money between linked Merrill Lynch
brokerage and Bank of America bank
accounts; and 3) trade stocks, mutual
funds, exchange-traded funds and op-
tions in approved accounts. Clients can
also track market news and headlines,
and gain access to the bank’s latest
research reports.

36—37
Citi Private Bank offers its clients both an iPhone and iPad app for information
and transactional services. The iPad version is a more interactive extension of the
iPhone app. The apps allow users to check their account balances, view account
groups and explore how assets and liabilities change over time. The value-added
services available through the app include monthly global economic commentary
from Citi Private Bank’s Chief Investment Officer, access to global equity and fixed
income research and video interviews and investment outlooks.
Since 2010, Finantix has offered a suite of iPad Wealth apps allowing banks to
improve their face to face sales and customer relationship management approach.
Finantix has a suite of apps which support financial advisers with face-to-face
client interactions, both in the retail banking and wealth management space.
The apps allow financial advisers and salespeople to improve front-end processes
and the customer experience by offering support to the following services:
• Wealth Management: investment advice and integrated financial planning for the high
net worth and mass affluent segments
• Sales: integrated client view, client fact find and regulated Know Your Customer,
simplified financial planning and advice-driven sales processes for the emerging mass
affluent and retail segments
• Branch Front-End: teller and banking transactions, client enrolment, product origina-
tion, customer service and sales support integrated in a branch automation desktop
• Self-Service Front-End: multi-channel financial portal that includes online
product catalogue, internet banking, smartphone banking and financial advice
based on graphical calculators and interactive dialogues
• Lending: sales, origination and decision support for mortgages, and consumer
and business loans
• CRM: integrated single client view, cross channel sales and marketing initiative
management, customer management and client interactions, cross-selling,
opportunity pipeline for sales activities and dialogues
Case Studies: Citi Private Bank and Finantix

The mobile nature of the target clients
and, by extension, of their private bank-
ers makes this sector an ideal market for
tablet technology. There are currently
two main approaches to deploying
private banking tablet apps:
• Customer deployed app (i.e. down-
loaded onto the customer’s device):
M-banking solutions can leverage
the tablet’s “exclusive” features not
available on smartphones to deliver
different functionalities. For example
easy-to-read portfolio snapshots and
provision of financial information in a
rich media format (e.g. market expert
video interviews, portfolio perform-
ance tracking using rich and high
resolution graphics), as deployed by
Citi Private Bank
• Private banker’s app (i.e. downloaded
onto banker’s device and used during
client meetings): The tablet can be
exploited to enhance interaction and
communication, and thereby also
provide an opportunity to propose
new products. Tablet functionalities
may include real time access and
sharing of information, interactive
banker-client simulation or creation
of new portfolios and “easy” illustra-
tion of new products using rich media
formats
The most widespread tablet device is
Apple’s iPad due to its user interface, its
easy integration into existing IT infra-
structure, and its inbuilt security levels
(applications on the iPad can be fully
encrypted if sensitive data is a con-
cern). Firms such as Finatix are advising
financial institutions on how to make the
most of the growing mobile and tablet
channel, as such services are rapidly
becoming mainstream across the bank-
ing sector.
J.P. Morgan recently launched an
iPad app for its high-net-worth and
ultrahigh-net-worth U.S. clients (those
whose assets are between $5 and $25
million). According to the bank, the
adoption rate has been faster than that
of their online platform when it was
first rolled out. The J.P. Morgan app
lets clients view their account balances,
transactions and investment positions.
They can transfer funds, send wire
transfers and pay bills using the applica-
tion, but they have to go through their
client managers to give orders on their
investment positions.
It is not only Apple devices, however,
that have drawn the attention of wealth
management specialists. E*Trade
Securities, for example, have recently
extended E*Mobile to the Windows
Phone software platform, currently
available primarily on Nokia devices.
This allows E*Trade Securities’ clients to
trade stocks via mobile, with the usual
news alerts and chart tools included
as standard. Such efforts at interoper-
ability occur frequently in the mobile
financial service space, yet in such a
rapidly evolving market it has thus far
proved impossible for all players to offer
all their offerings through all possible
platforms.

38—39
4.3 Implications
The choice between different private
banking firms remains much more de-
pendent on their financial performance
than their use of the latest technologies.
Compared to retail banking clients,
private banking clients are far ‘stickier’,
since they incur higher switching costs
and face other unique barriers.
In the context of mobile services, the
lack of a state-of-the-art mobile solu-
tion will not be a decisive factor for a
client to switch banks, reducing private
banks’ need to urgently roll out innova-
tive mobile services. Private banks do,
however, need to remain in line with
wider financial industry mobile trends.
Moreover, the mobile channel offers
private banks the opportunity to reduce
the client servicing costs by enabling
self-servicing.
This is particularly true for affluent cus-
tomers for whom the complexity of the
invested assets and individual require-
ments are limited.
Ultimately, as a younger generation of
private banking customers comes of
age, private banks will have to find ways
to integrate devices and channels in the
manner they expect.
Going forward, therefore, private banks
will have to meet their clients’ new
expectations and invest more resources
into developing their smartphone and
tablet offerings.
The business case and possible organi-
sational impacts, however, vary signifi-
cantly based on the type of services
offered and the type of customer.
They are thus hard to quantify at this
stage.
A number of key questions still need to
be addressed including:
• How will the clients use the device?
• Will the private banker be partly
bypassed by the client? How will
incumbent private banking channels
change or evolve following the
introduction of mobile technology?
How will the evolution be different
for the various wealth segments
served by the industry?
• In the long run will the bond between
the private bank and the client be
weakened? How best can private
banks mitigate this potential risk?
• Will the client be more inclined,
with improved access to financial
information, to purchase more
complex financial products (with
higher margins)?
• How do you provide a ‘premium’
experience over the internet and
mobile phones?

Corporate banking
5
24
Global Finance Magazine, June
2011 (www.gfmag.com).
M-banking has yet to be developed to
a great extent in the corporate bank-
ing segment. To date, only a handful
of banks offer corporate mobile and/
or tablet solutions that differ from the
retail offering i.e. are tailored to meet
the requirements of corporate decision-
makers (e.g. treasurers). Yet there have
been recent signs of accelerated adop-
tion. However, given the high penetra-
tion of mobile devices among corporate
representatives, it seems a natural next
step for banks to further develop their
corporate m-banking solutions, in order
to enhance the customer experience,
improve products and possibly deploy
new fee generating offerings. Moreover,
these key corporate decision-makers
are now showing a greater interest in
accessing mobile corporate banking
services24
.
5.2 Propositions
Corporate m-banking solutions
aim to assist corporate treasurers
in performing their duties.
They endeavour to do this by giving
them easy access to key information
in the most appropriate, and possibly
customised, format, and by providing
an alternative channel for initiating
or authorising transactions.
Functionalities can include, for example:
• Cash position snapshots across ac-
counts, across countries, and poten-
tially across different banks (implying
a degree of cooperation or a third
party solution)
• Approvals of transactions, e.g.
invoice payments, foreign exchange
(FX) trading or wires, including those
requiring multiple signatories to gain
approval
• Checks on the status and/or out-
come of major financial transactions
(either reactively through a status-
driven alert, or proactively through a
customer-initiated inquiry)
• Triggered and ‘actionable’ alerts
that enable decision-makers to make
corporate decisions instantaneously
(e.g. positive pay or liquidity man-
agement issues)
• Advanced cash and liquidity man-
agement
• Out-of-band authentication to
augment the security and safety of
existing channels, such as online and
over-the-phone interactions
Key corporate decision-
makers are now showing
a greater interest in
accessing mobile corporate
banking services.

40—41
In 2011, Wells Fargo launched its CEO Mobile Deposit service for corporate
clients. The iPhone app is a rare example of a mobile corporate banking solution
which offers a wider range of services than the online platform.
The CEO Mobile Deposit is not only an extension of web portal services but also
allows customers to capture cheque and money order images and deposit funds
in their corporate bank accounts. The mobile app synchronises in real-time with
the online CEO portal and even gives users the option to enter location information
to make it easier to identify deposits.
In addition to these transaction services, the CEO Mobile Deposit service enables
users to receive alerts about critical transactions or items that need attention,
review account balances and transactions, manage commercial card expense
reporting, review and reset rates for expiring term loans, and administer and reset
passwords.
Illustration of Wells Fargo iPhone app:
Case Study: Wells Fargo

Beyond the m-banking services pro-
vided, security on a mobile device is a
a key element that must be addressed
to ensure the adoption of corporate
m-banking solutions by corporate
decision-makers25
.
Additionally, since each corporate
treasurer may operate differently ac-
cording to their company’s policies and
structure (e.g. treasury management
by business unit vs. key currency),
m-banking solutions will need to adapt
to the clients’ specific requirements by
offering a degree of customisation.
Financial service institutions will need a
good knowledge of their clients’ proc-
esses to best design and deploy mobile
solutions. In the short term this could
potentially favour the incumbent banks,
which already have an understanding
of their clients’ requirements. Those will-
ing to target specific market segments
– such as Silicon Valley Bank, which is
offering fast-growing SMEs the ability to
make payments on the go with its new
mobile payments platform26
– may also
be able to benefit from the advantages
of differentiation.
One of the better-known corporate
applications currently in use is that
at Wells Fargo. This application
provides traditional account and
reporting information as well as
allowing account actions, such as wire
release, fund movement approvals
and payment decisions.
HSBC also launched its mobile serv-
ice – HSBCnet Mobile – for corporate
treasurers in November 2011, a service
that “has been used to authorise $500
million in transactions in 19 Asia Pacific
countries in its first 19 weeks”27
and over
$1.2 billion value of transactions glo-
bally since its launch. HSBCnet mobile
features include account balance and
statement checking, priority payment
authorisation including inter-account
transfers, ACH credits/debits and cross-
border payments, and alert services on
three of the most used mobile platforms
(iOS, Android and Blackberry).
Smaller banks are also attempting to
differentiate themselves by offering
corporate banking products. Pinnacle
Bank, for example, has a presence in
only eight American states; its Business
Mobile Bank service sends alerts to
your phone regarding account activity,
and allows you to carry out actions such
as the approval of fund transfers.
Meanwhile Monetico Bank and Trust,
with only nine bank branches, has a
‘Mobile Business Banker’ service that
includes an integrated branch and ATM
locator.’
25
Celent, December 2011,
‘Corporate Mobile Banking:
Revolutionising Cash
Management’ (www.celent.com).
26
Silicon Valley Bank 2012.
27
Finextra, 29 March, 2012.

28
Source: Ait Group Fundtech.
42—43
5.3 Implications
Ad hoc corporate banking solutions
could prove a key competitive differ-
entiating factor for corporate banks
within the context of an industry in
which time and the ability to make
decisions on a 24/7 basis is critical and
currently limited by location and con-
nectivity constraints. As stated earlier,
a solution’s ability to be tailored to the
customer’s needs may well prove a key
feature, in particular for larger and/or
more complex organisations. Moreover,
ongoing relationships could be lever-
aged to customise the solution directly
in collaboration with the client.
However, larger corporations invariably
hold their funds in multiple accounts
spread across numerous financial insti-
tutions. Therefore, to be truly effective,
a corporate mobile banking solution
will have to offer a degree of interoper-
ability between competing financial
service providers. The first provider,
whether financial institution or not,
which gains a dominant position as an
enterprise “treasury hub” may subse-
quently be hard to displace.
Additionally, m-banking solutions, as
a new offering, could allow corporate
banks to introduce a new revenue
stream through m-banking fees.
Although most mobile services are
generally offered free of charge, at least
50% of corporate treasurers would be
willing to pay for them28
.
However, within this space there are a
number of key questions that still need
to be addressed:
• How will the clients use the device?
Will they ever wish to initiate
complex transactions using a
mobile solution?
• What role will it play within the exist-
ing set of products?
• What is the opportunity within the
context of SME banking?

Innovation and first-
mover advantages
6
29
www.simple.com.
30
investorbee-px.rtrk.co.uk.
31
www.saveup.com.
32
Global Savings Forum,
November 2010, Expanding
Customers’ Financial Options
Through Mobile Payment
Systems: The Case of Kenya.
There are a huge number of mobile
financial service solutions coming to
market. These not only include the
incumbent financial institutions and
developing telecoms businesses men-
tioned previously, but also new financial
institutions that are taking advantage of
this emerging channel. Simple Finance
Technology Corporation29
, for example,
does not claim to be a bank but of-
fers transparent financial management
through its interface with pre-existing
accounts; its mobile platform is a key
feature of its solutions, allowing users to
keep track of their finances in real time.
In the future it is not unforeseeable that
alternative financial service providers
such as InvestorBee30
(an easy-to-use
online investment platform) and Save-
Up31
(a service that offers sponsored
rewards to those who reduce their
debt and increase their savings) could
also develop their mobile offering into
customised applications.
With such propositions appealing to the
mass market it is important to pay close
attention to how the average consumer
feels towards these different providers.
Although some “traditional” financial
service institutions are trusted with
m-payments by up to 40% of consum-
ers, organisations such as PayPal are
not far behind, having benefitted from
first-mover advantages in the mobile
payments landscape. This has placed
it – in terms of consumer trust – above
companies such as Visa and MasterCard
who pride themselves on being experts
in electronic payments.
This trend has also been replicated in
the developing world, with M-Pesa now
a dominant player in the financial serv-
ices landscape – with its banking arm,
M-Kesho, experiencing a faster initial
uptake than M-Pesa itself32
– having rap-
idly gained the trust of much of Kenya.
Such first-mover advantages for those
offering attractive propositions hold
both challenges and opportunities for
incumbent financial service institutions.
To remain dominant in the market, and
to gain the trust of consumers, they
must be seen to be visible and effective
across a variety of platforms. Mobile, as
the most portable, and increasingly the
most ubiquitous, of platforms is a key
area in which a strong financial manage-
ment proposition is essential.
First-mover advantages
for those offering attractive
propositions hold both
challenges and opportunities
for incumbent financial
service institutions.

44—45
conclusions
7
In the current economic climate – in
which banks are limiting investment,
focussing on cost-cutting exercises and
retrenchments in their core business –
there is a general lack of focus on inno-
vation. Mobile financial services are one
of the few exceptions to this, both be-
cause of the drivers mentioned earlier in
the report and because they represent
an untapped opportunity waiting to be
exploited either by telecom providers,
internet companies or new entrants into
the financial services industry. Financial
service players are therefore looking to
exploit this emerging new channel or to
respond to potential competition with
their own mobile offerings.
Overall, mobile financial services are
an attractive opportunity from the
perspective of an incumbent, of a new
entrant and of an institutional inves-
tor. Although the industry started to
emerge in the mid 1990s, it is still at an
early stage of development. Over recent
years the industry has started to move
at a speed that is more typical of an
online start-up than the usual pace of
financial services.
For any player looking at entering this
market – either by targeting end users
or through the provision of services to
business players – there is no question
about the size of potential opportunity.
There are nonetheless a number of criti-
cal points that need to be addressed in
order to be successful:

33
Google, for example, saw use
of its mobile wallet application
double after modifying the
system to allow the addition of
cards issued by anyone, even
if they were not in a direct
partnership with Google.
• The competitive landscape:
The business environment is develop-
ing rapidly with a significant number
of players and forces. Potential
opportunities are difficult to take
advantage of without a good view of
the market direction
• Positioning: Defining which part of
the financial service value chain to
engage in and what type of user
experience to provide is essential.
Technological developments are
triggering waves of disruptive innova-
tion (e.g. cloud computing, real-time
alerts) that will impact what services
are delivered, how this takes place,
on which platform and along which
data pathway. Ensuring interoperabil-
ity will be a key part of a successful
positioning33
• Client needs and characteristics on
the demand side: Ultimately the client
is king, and the value proposition
should be enriched and expanded
into different directions to better
integrate it with what the customer
perceives as valuable to him/her
• Business case: Mobile financial
service providers’ revenue drivers
and pricing models can be different
from those of an incumbent financial
services institution. Implicit in the
provision of these services are com-
ponents (e.g. data) with an intrinsic
value that could be monetised, keep-
ing in mind the need to rely on realis-
tic assumptions and develop various
scenarios of potential user adoption.
A key objective at the beginning of
such a process should be the devel-
opment of a critical mass to ensure a
robust and sustainable business

46—47
Fiserv View
of the Market
A Compelling Landscape
for Financial Institutions
It is evident to Fiserv that
mobile financial services
have matured and become
“mainstream” in the last
few years. We know
this because over 1,200
financial institutions have
selected our Mobiliti suite
of products to power their
mobile channel across five
continents and there are
now millions of end-users
transacting with their bank
or credit union through
our platforms every day.
Mobile channel matu-
rity looks different across
jurisdictions, financial
institution types and lines
of business. Yet, we see
common themes at play,
including the shift to
more transactional mobile
banking, the emergence
of mobile as a distinct
channel and the potential
cost savings and revenue
opportunities that can
be achieved by providing
mobile banking service
offerings.
From Foundational
to Transformational
Many financial institutions
already have what we
term as “first generation”
mobile solutions and func-
tionality in place, includ-
ing s; balances, transfers,
branch locators and bill
payment.
Now that end-users and
banks alike are comfort-
able with these founda-
tional services, it is time
to expand mobile financial
services offerings.
Beyond replacing existing
services in a new channel,
next generation mobile
banking services are trans-
forming how consumers
manage their finances.
Mobile payments and
services that augment the
payments experience are
central to this transforma-
tion.
Topical examples of how
Fiserv is involved include;
remote cheque deposits
through the use of mobile
device cameras, location-
based merchant offers and
real-time P2P payments
using mobile phone num-
bers as payee identifiers.
A Distinct Channel
Bankers now see mobile as
a distinct channel.
As recently as 2011, finan-
cial institutions perceived
mobile as an ‘extension
of online banking’. This
perception has changed.
Fiserv believes this is
because the industry is
beginning to embrace
the concept of “channel
specialization”.
Fiserv uses the metaphor
of “snacking, lunching and
fine dining,” to describe
how consumers use the
mobile, online and branch
channels. Fine dining ap-
propriately describes the
branch channel (and to
some extent, the contact
centre), which offers a full
menu of services and is
well-suited for activities
where personal interaction
is preferred, much like the
experience offered at a
fine restaurant. Because
the online channel is
well-suited to detailed
self-service activities,
consumers use the channel
for routine and structured
banking activities such
as managing budgets /
finances and turning off
paper statements.
This makes the way
consumers use the online
channel like sitting down
to eat lunch.
But, use of the mobile
channel is different.
The mobile channel is like
“snacking” because it
lends itself to spontaneous
banking interactions that
typically take less than 60
seconds to accomplish or
have a sense of urgency,
such as checking balances
at a retail checkout
or paying a bill at the last
minute.

Consumers rely on mobile
banking “snacks” to satisfy
an immediate need at any
time, in any place.
Financial institutions that
can make the use of mo-
bile banking more appetiz-
ing to on-the-go end users
stand to benefit.
More Than Technology
As the mobile channel
matures, it is also clear
to us that mobile is more
than just technology. It is
a distinct channel that is
transforming the banking
industry forever.
Beyond technology,
keeping pace with this
transformation requires
financial institutions to put
in place formal channel
management disciplines,
proactive risk manage-
ment procedures, change
management programmes,
consumer education,
effective customer care
processes, and end-to-end
service design.
By viewing mobile banking
as a positive disruptive
force for the financial
services industry, banks
are likely to establish
the institutional mindset
required to successfully
make the transition.
From End to End-to-End
Many banks have already
reported that there is a
distinct trend toward the
mobile channel becoming
the dominant touch-point
for their institutions.
This makes unplanned
outages, inconsistent de-
vice / OS support, security
vulnerabilities and the like
unacceptable.
As such, the question be-
ing asked by banking exec-
utives is no longer “what
does the front-end look
like,” but rather, “how do
we make sure our custom-
ers have unfettered access
to available services every
second of every day?”
To that end, financial
institution executives in
charge of mobile channel
development are focusing
their energies on making
their mobile banking and
payments end-to-end
infrastructure banking-
grade.
Fiserv views this as an im-
portant step in the chan-
nel’s maturation that will
contribute to the sustained
success of mobile banking.
Reduced Costs and More
Profitable Customers
Last but not least is the
notion of return on invest-
ment from the delivery of
mobile financial services.
The mobile channel is
already profitable for
many financial institu-
tions. Industry data tells
us that users of the mobile
channel are cheaper to
serve, churn less often,
increase their card spend-
ing and are more likely
have additional banking
products than those who
only use more traditional
banking channels, includ-
ing online banking users
who have been among the
most sticky and profitable
banking customers. Given
how relatively new mobile
banking is, response to
the channel and benefits
derived are astounding.
It is for these reasons that
Fiserv encourages bank-
ers from all corners of
the world to read “Mobile
Financial Service: A Com-
petitive (and fragmented)
Landscape” and commit
to investing in the mobile
banking transformation.
It will be worth it.

48—49
About
FISERV
Fiserv (NASDAQ: FISV) is
a leading global provider
of information manage-
ment and electronic
commerce systems for the
financial services industry.
Fiserv provides integrated
technology and services
that create value for our
clients. Fiserv drives in-
novation that transforms
experiences for more than
16,000 clients worldwide
including banks, credit
unions and thrifts, billers,
mortgage lenders and
leasing companies, broker-
age and investment firms
and other business clients.
Fiserv Mobile Solutions
are recognized as the best
go-to-market solutions
for financial institutions
that are looking to satisfy
today’s needs for mobile
banking while support-
ing the evolution of their
mobile channel particu-
larly into payments. As the
world’s most proven pro-
vider of digital and mobile
payment solutions, Fiserv
is uniquely positioned to
help you deliver on all
aspects of your emerging
mobile payments ecosys-
tem. MobilitiTM
from Fiserv
provides an all-in-one mo-
bile banking, alerting and
payments solution, perfect
for financial institutions
of all sizes. It is available
in distinct versions, includ-
ing Mobiliti EnterpriseTM
,
Mobiliti EdgeTM
and Mobiliti
ReachTM
.
Mobiliti Enterprise is a
highly configurable mobile
banking, alerts and pay-
ments solution that that
enables tier-1 financial
institutions across the
globe to deliver the most
comprehensive breadth
of transactions services
today its customers. It
can be customized and
extended to your specific
requirements with pre-
built options and innova-
tions that increase your
speed to market.
Mobiliti Edge delivers a
comprehensive mobile
financial services platform,
which includes out-of-box
mobile payments and en-
terprise alert capabilities.
It has flexible integration
options that allow financial
institutions in sophisticat-
ed banking markets to add
capabilities to align with
their business strategies.
Mobiliti Reach enables
banks in emerging econo-
mies to deliver a complete
and carrier-independent
mobile banking and pay-
ments solution. It is de-
signed to meet the specific
needs of the unbanked and
underbanked segments.
When it comes to the
mobile channel and digital
channels in general, Fiserv
delivers the organization-
al, product and opera-
tional confidence allowing
financial institutions to get
ahead of the curve. More
than 1,200 financial insti-
tutions in five continents
have selected mobile solu-
tions from Fiserv.
fiserv.com/mobile

About Payments
Cards and Mobile
In business since 1994,
Payments Cards & Mobile
is an established and
award-winning digital
and physical publishing
platform for payments
companies globally. We
work with recognised in-
dustry experts to provide
impartial, up-to-date and
relevant information and
analysis on every area of
payments.
Personal relationships
have been the hallmark of
our business. We remain
committed to working
closely with our many
long-standing and new
customers in produc-
ing quality editorial and
providing a variety of
ways in which you can
position your business and
key personalities in this
increasingly competitive
industry.
Publishing - Payments
Cards & Mobile is the
leading payments publica-
tion covering every aspect
of the international card,
mobile and contactless
payments business. We
mail 11,000 copies of the
magazine to leaders and
payment experts, and dis-
tribute it at all the major
global conferences and
exhibitions.
Mobile Payments World
covers the latest news,
developments and key
players in mobile pay-
ments, mobile commerce,
near-field communication
(NFC) and mobile money
transfer. Mobile Payments
World is a bi-weekly news-
letter for the busy profes-
sional who wants to scan
the latest happenings and
trends on a more regular
basis.
Our other services:
Research – Payments
Cards and Mobile Re-
search prepares reports
on a variety of topics for
our leading magazines.
These are often available
as more comprehensive
reports on the Research
pages of our website.
We also provide bespoke
research projects on
specialist subjects includ-
ing fraud, country reports,
SEPA, PSD, card networks,
mobile payments, mobile
money transfer and mobile
contactless payments.
Yearbooks: Our Yearbooks
– European Payment Cards
Yearbook and Russia and
CIS Payment Cards Year-
book – are fully-updated
every year with card indus-
try figures, and include a
wealth of information from
central banks, interbank
companies and associations
and individual banks as well
as all the latest card market
and consumer finance de-
velopments. Each Payment
Card Yearbook is available
as a complete volume,
containing analysis and
statistics, with charts, dia-
gram’s and tables covering
international cards issued,
domestic card schemes,
acquisition and acceptance.
Marketing and Communica-
tions: Payments Cards and
Mobile’s partner, Mag-
naCarta PR Ltd, provides
you with a team of sea-
soned communicators and
marketers with decades
of experience in pay-
ments – cards, electronic,
contactless, mobile and the
ever-evolving ways to pay
and be paid. We can help
you with strategies to best
reach your target markets,
marketing PR, media rela-
tions, issues management,
business development,
events, speechwriting, cus-
tomer literature, social me-
dia tactics and employee or
change communications.
paymentscardsandmobile.com

About Value
Partners
Value Partners has an
established financial
institutions practice with
a proven track record
in cards, payments
and transaction banking
consultancy.
Over a quarter of our
projects are now on
behalf of financial institu-
tions. We have completed
projects with top banks,
issuers, acquirers,
processors and payments
schemes.
Value Partners works
across all sectors of the
telecommunications and
digital marketplace, as
one of the largest TMT
practices worldwide, with
particular expertise in
public and commercial
broadcasting, satellite
and pay TV, publishing,
digital media, sports, fixed
and mobile voice and
broadband, license bids,
network infrastructure and
equipment.
Over the last 19 years
we have delivered real
benefits for our clients,
60% of whom have been
with us for over 8 years,
building on our deep
industry insights into key
issues for these sectors.
Value Partners has played
a primary role in the
development of innovative
solutions, especially those
at the crossroads between
industries.
We have assisted 3 of the
world’s top 5 banks, the
leading European financial
institutions and the main
telecoms operators in
Europe, Asia, Middle East
and Latin America.
Value Partners works
with the leading blue
chip international media
companies, including 30
of the leading pay-TV and
free-to-air broadcasters
in more than 20 markets.
We serve the largest
private equity firms with
an interest in financial
services in the telco and
media industry.
Value Partners helps its
clients adapt their busi-
ness models in an increas-
ingly complex business
environment, to maximise
impact and returns in the
financial services, pay-
ments, telco, technology
and digital media spaces.
Founded in Milan in 1993,
Value Partners’ rapid
growth testifies to the
value it has created for
clients over time.
Today it draws on 25
partners and 280
professionals from 23
nations, working out
of offices in Milan, Rome,
London, Istanbul,
São Paulo, Buenos Aires,
Beijing, Shanghai,
Hong Kong and Singapore.
Value Partners has built
a portfolio of more than
350 international clients
– from the original 10 in
1993 – with a worldwide
revenue mix.
valuepartners.com

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