Mobile banking was launched in May 2007 access from mobile applications or web browsers on mobile
SMS were planned to go live in a few months
Brown was hesitant for getting mobile app complex/ unclear whether users were ready to sign up for mortgages or credit cards on their mobiles./
Competitors like Citi have added credit card feature to their mobile app.
Building apps for different target groups(Citi and Wells did it), but building apps means reprioritizing critical bank technology resources from others
Locate ATMs and branches
Check credit card balances
Pay credit card bills
Track credit card awards
Credit card due dates
More than 40 currency rates can be seen
Monitor balances for corporate bank accounts(outgoing payments..)
Virtual Wallet including calendar to view paychecks and money needed to pay bills
Saving engine and overdraft warning Financial Services Industry:
In 2009 bankruptcies10 largest banks held about half of deposits(BOA, JP Morgan, Citigroup, Wells, PNC) Clients reined in their spending and hurt BOA because of the size of retail banking.
Opportunity by focusing on convenience, fees and customers service.-> customers chose their bank based on traditional criteria such as low account min, rates, locations.
Founded in 1904, By Dc 2009 its market covered 82% of the US, served over 53M clients.
Leadership position in 23/30metropolitan areas
Number one mortgage originator.
In 2008, revenues increased but NI was down by 73%.
In 2009, They got 20$Billion in capital to stabilize the financial markets. Mistake Fear of linking to Citigroup.
US mobile banking Markets
It a way to differentiate themselves
Projected one of the least costly banking channels cost per transaction: $0.10 in 2009, will drop $0.03-$0.04 $0.13 in interactive voice response(IVR) $0.16 ATM $1.34 branch
Works through sms
Check balances or set up alert
It works with all wireless operators/ no installation
Text based/ 140 to 160 chars
Effectively connects mobile users to web site
Users need data plan, slow browsers, small screen size
Smart phones can search the closets branches
It is more customized
Smartphones’ growth will be from 10 to 46%
Many combinations of devices has costs for developing from 40000-50000 for small and thousands for complicated ones
In 2009 10m is getting 37M in 2014(30% online banking users)
Annual transactions for mobile banking in 2008: 180M to 2.4B in 2014
Increasing user awareness/ better features
60% of not mobile banking users are willing to use
Users should register for online banking to use mobile banking in most cases except for Well
1% prefer mobile / 25% online banking/ 21% branches/ 17% ATM because of security/limited value/ cost of data access
In 2009, US market showed rapid growth signs
Contactless/ substitute for cards/save time /
When the merchant is not at the place
Adding costs to their bills/ retain customer transaction value
Us arket for virtual goods 677M$ in 2009 increase to 2B in 2014 / expect of micro-payment to larger purchases
Person to person payment
Send money to others
Like paypal/ it is not regulated as a bank/ in 2007 60B$ transactions by rate of 27% increase/ 9% of global and 15% of Us are done by
Global remittance as an opportunity/ 300B$ flowing money globally
Population of nonbanking population/ 1.5B unbanked and 3B