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Strategic mobile wallet options for Banks – Analysis

In a sensibly positioned White paper, The Mobey Forum argues that the utilisation of mobile technology is permanently changing consumer spending habits, disrupting previously-exclusive relationships between banks and their customers worldwide.

If banks and financial institutions are to advance their commercial interests and remain

A phone showing a mobile wallet

Banks should take lead in mobile wallet

competitive in the mobile age, they need to act now to formulate a sustainable mobile wallet engagement strategy.

This is the view expressed by Mobey Forum’s Mobile Wallet Workgroup in the fifth instalment in its series of mobile wallet white papers, published today.

The paper, entitled ‘Mobile Wallet: Strategic Options for Banks’, draws on the analysis of the previous four papers, together with a variety of current mobile wallet examples, in order to highlight a series of strategic options for banks.

It explains how the mobile wallet will transform the consumer shopping experience and describes the new role that banks and financial institutions can play in its delivery, before outlining a series of recommendations intended to aid banks in their efforts to establish optimal ecosystem positioning.

Three groups of services are described which are expected to drive mobile wallet adoption – ‘payments’, ‘own value added services’ and ‘value added services from third parties’. These groups are then mapped against three models for wallet ownership: ‘own wallet’; ‘joint venture wallet’ and ‘third party wallet’.

Five strategic go-to-market options are derived from this process, which are explored and assessed. The paper concludes that the strength of each strategic option is dependent on a variety of factors influencing the bank or financial institution in question, and contends that each has validity when it is matched appropriately to the bank’s individual circumstances.

“Each strategic option has its own merits, but what unites them all is the need for banks to step out of their comfort zones and rethink their roles in the market,” comments Amir Tabakovic, Chair of the Mobile Wallet Workgroup, Mobey Forum. “By following ambitious mobile wallet strategies, some banks are starting to play in sectors that, in truth, have virtually nothing to do with banking at all.

Even those opting for a more cautious approach must contend with a whole variety of emerging business models. We believe that banks would be foolish to ignore this market; it is evolving rapidly and the stakes are high.  Banks have much to gain and, perhaps more than other players, much to lose.”

‘Mobile Wallet: Strategic Options for Banks’ is available for download without charge from

Leading banks and service providers have all contributed to the white paper, including: Bank of America, Danske Bank, Fiserv, Giesecke & Devrient, Monitise, Nets, PostFinance and Royal Bank of Scotland.

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