• Type: Survey report
  • Date: 6/17/2011

Monetizing mobile: Innovator banks are taking the lead 

Innovator banks are taking the lead
In both mobile banking and mobile payments, a small number of banks are driving ahead with developing mobile payments to brandish their credentials as innovators and gain competitive advantage.

“The introduction of NFC will change the traditional value chain for banks for low-value payments, bringing in new partners to manage devices and drive merchant adoption.”

- Fred Schneidereit, Partner, KPMG in Germany

Mobile banking pilot programs

Some are already running small pilot programs in local communities and within their own company facilities. For the innovators, these pilots are a critical step towards gaining a better understanding of customer preferences, trends and challenges. They also build awareness of the emerging service within the bank’s employee base.

But, according to our research, some banks are still not convinced about the benefits of mobile payments. At the root of the debate is whether customers will see enough value in the new channel to push adoption rates to a level that offsets the investment costs. As one respondent insightfully pointed out, “Consumers don’t always act as logically as you think they will in the marketplace.”

Moving global mobile payments forward

“In our opinion, if banks can roll out a safe, easy to use and ubiquitously accepted system, consumers will very quickly adopt mobile payment solutions in much the same way as they have adopted other mobile services.” said Mitch Siegel, a Partner in the financial services practice at KPMG in the US. “Now is the time for banks to be working towards cooperative standard setting and the need for healthy ‘co-opetition’ to help drive the global mobile payments market forward.”

Share this

Share this

Learn more

We encourage you to contact your local KPMG member firm, or email to talk to one of our mobile banking specialists.

Download the PDF

The era of mobile banking and payments is dawning. Find out how mobile will change the way banks and their customers interact.