Mobile banking was a solution that fit developing world needs like a glove. Most developing countries have suffered from low penetration of banking and electronic cash. The model is being led by various types of entities: banks, mobile companies and third-party aggregators. In India, the push for mobile banking is coming from the banking regulator committed to financial inclusion.
The biggest GameChanger for mobile banking will be its ability to converge the twin objectives for financial inclusion and convenience of the already-banked. The latter will provide scale and income while the former will create a self-sustaining ecosystem of increased inclusion. A linkage between the two sections of the society will also lead to increased transaction flows transparently eliminating the Black Money Economy.
The scope and potential of this technology dilutes the relevance of traditional, expensive models designed for last-mile access. We examine how this powerful tool is going to facilitate financial transactions for marketers of products and services in the telecom, banking and value-add services (VAS) spaces.