APAC Banks Step Up Focus On Mobile Innovation

by CXOtoday News Desk    Feb 18, 2014

mobile banking

Mobile payments and mobile marketing remain top investment priorities for banks in Asia. While the gross of the initiatives are largely similar in nature, some players in Asia-Pacific are taking mobile innovation to the next level, says a new IDC Financial Insights Asia-Pacific report that has identified a number of mobility initiatives that add a new innovation angle to mobility and analyzed each initiative based on criteria such as technology, monetization potential, ecosystem requirements, and target audience.

Thomas Zink, research manager for IDC Financial Insights Asia-Pacific believes that some of these initiatives have the potential to revolutionize the way payments, marketing and loyalty, investments, and the workforce are managed in the financial services space today.

“Mobile financial services are becoming a core component of any customer-centric big data strategy. Not only is it generating a wealth of actionable data for contextual marketing, but it is turning into the main marketing and communication channel given its immediate nature, share of mind and reach,” says Zink.

Read: APAC banks to drive IT investment

The study highlights some of the key focus for these banks.

- Customer experience, convenience and simplicity are the main success factors for any new mobile application and payment tool

- Mobile financial services have outperformed expectations in its ability to unlock new customer groups, who never had a banking relationship, particularly in emerging markets, but also among the youth segment.

- Large-scale infrastructure projects for proximity payments will continue to face slow adoption unless they offer a real value-add over existing technologies. A wide merchant acceptance and interoperability between different providers and across technologies will be crucial to move forward.

- Smarter devices and interoperable technologies may soon reduce the need for proximity payments as the virtualization of commerce proceeds. Smart selection of the most suitable payment method by the device, may mitigate many of the challenges with proximity payments today.

 

The research notes that while banks continue to focus on mobile payments and marketing for further growth and revenue, one area they need to rigorously look into is mobile security.  “As malware is bypassing two-factor authentication, banks and vendors need to up their capabilities and develop new and integrated mobile security concepts, such as mobile enterprise management,” the report says.