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RegulationsNovember 5 2007

CELENT STUDY: MOBILE BANKING VENDORS TACKLING THE TECHNOLOGY-DISTRIBUTION TRADE-OFF

Celent study looks at mobile banking vendors while IFAD & IADB examines the burgeoning remittance market.
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A new report from Boston-based financial research and consulting firm, Celent, examines competing mobile banking technologies and their vendors.Key findings include:

  • Celent predicts that banks will increasingly adopt mobile browsers and that more vendors will expand their offerings to support this modality.

 

  • For the past 10 years, mobile phone adaption has grown to the point where such devices are considered to be a necessity in consumers’ lives. Mobile device penetration is at about 76% and is anticipated to grow to 80% by 2008. With so many mobile devices in the hands of US consumers, the most vital building block of the mobile banking infrastructure is already in place.

 

  • Celent estimates that 3% of all households using online banking in 2007 will also use some form of mobile banking. In 2010, this figure is estimated to rise to 30%, the equivalent of 17 million households.

 

  • In 2008, it is highly likely that many of the large bank system vendors will enter the mobile banking space.

 

  • Financial institutions regard mobile payments as having the biggest revenue-generating potential for mobile banking. A key to its success will be unique value propositions that will cause customers to switch their plastic cards for mobile phones.

IFAD & IADB STUDYWORLDWIDE REMITTANCES TO DEVELOPING COUNTRIES Migrants working in industrialised countries sent more than $300bn to developing nations in 2006, according to the latest study released in Washington, DC, by the International Fund for Agricultural Development (IFAD) and the Inter-American Development Bank (IADB).

This figure, which is seen as a conservative estimate, stems from remittances generated by 150 million migrants who send money home regularly, typically between $100 to $300 at a time. The amount, which is almost 50% more than the $207bn in the World Bank 2006 report that excluded informal channels, is well ahead of last year’s $167bn in foreign direct investment in developing countries and also well above official development assistance.

According to the study, in 2006 Asia was the top destination of remittances, receiving more than $114bn, followed by Latin America and the Caribbean ($68bn), eastern Europe ($51bn), Africa ($39bn) and the Near East ($29bn).

Taking nations individually, India received the most ($24.5bn), followed by Mexico ($24.2bn), China ($21bn), the Philippines ($14.6bn), and Russia ($13.7bn).

“For IFAD the most important thing to look at is how to channel this money so that it contributes to prosperity in rural areas,” says IFAD’s Kevin Cleaver.

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