Mobile Banking Business Models
A wide spectrum of Mobile/branchless banking models is evolving. However, no matter what business model, if mobile banking is being used to attract low-income populations in often rural locations, the business model will depend on banking agents, i.e., retail or postal outlets that process financial transactions on behalf telcos or banks. The banking agent is an important part of the mobile banking business model since customer care, service quality, and cash management will depend on them. Many telcos will work through their local airtime resellers. However, banks in Colombia, Brazil, Peru, and other markets use pharmacies, bakeries, etc.
These models differ primarily on the question that who will establish the relationship (account opening, deposit taking, lending etc.) to the end customer, the Bank or the Non-Bank/Telecommunication Company (Telco). Another difference lies in the nature of agency agreement between bank and the Non-Bank. Models of branchless banking can be classified into three broad categories - Bank Focused, Bank-Led and Nonbank-Led.
Read more about this topic: Mobile Banking
Famous quotes containing the words mobile, banking, business and/or models:
“From three to six months, most babies have settled down enough to be fun but aren’t mobile enough to be getting into trouble. This is the time to pay some attention to your relationship again. Otherwise, you may spend the entire postpartum year thinking you married the wrong person and overlooking the obvious—that parenthood can create rough spots even in the smoothest marriage.”
—Anne Cassidy (20th century)
“One of the reforms to be carried out during the incoming administration is a change in our monetary and banking laws, so as to secure greater elasticity in the forms of currency available for trade and to prevent the limitations of law from operating to increase the embarrassment of a financial panic.”
—William Howard Taft (1857–1930)
“I simply contend that the middle-class ideal which demands that people be affectionate, respectable, honest and content, that they avoid excitements and cultivate serenity is the ideal that appeals to me, it is in short the ideal of affectionate family life, of honorable business methods.”
—Gertrude Stein (1874–1946)
“Today it is not the classroom nor the classics which are the repositories of models of eloquence, but the ad agencies.”
—Marshall McLuhan (1911–1980)