Mobile

Mobile Payments & Remittances – Dangers Ahead

The second decade of the twenty-first century is going to be the “Mobile Decade”. There is definitely no question about that. All throughout the global banks and others are churning out cell fee applications (amongst others of course) at a velocity that has become so rapid that it is increasingly more difficult to maintain up. In a phrase, the pace of alternate has come to be “dizzying”.

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In Africa, the cell smartphone is being seen as the tool which could convey a lot right, cost-effectively and hastily to this long-suffering continent. A famous application for this surprise device is in the area of Migrant Worker Remittances and small price Payments.

Amid all this exhilaration, there’s but shadows on the horizon. And if these capability troubles aren’t addressed they could both end up showstoppers. These problems are what I together term the “Driver Issues”. As I stated there are two of them; “Technology Drivers” and “Regulatory Drivers”. Let me explain.

 

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Leading part traits especially within the banking industry have a tendency to be driven via the technologists. Banks had been early adopters of Information Technology. Way lower back in the 1960s and Seventies banks noticed the plain advantages of the computer, initially for account and statistics processing and unexpectedly became the enterprise’s biggest customers of this new way of doing business and processing transactions. Anything that could automate the processing, storage and retrieval of big amounts of transactional data become certain to be a massive hit – and it became!

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So it turned into logical, that as the years handed, any new generation or application became quietly previewed to the banking enterprise. As a person heavily involved in R&D in digital banking manner returned inside the 1980s we have been continuously being approached with the aid of the “large guys” and lots of smaller builders too, who had solutions to issues that they requested to locate. It has become pretty an awful lot an enterprise shaggy dog story about “solutions searching out issues”.

In this manner, we have been uncovered to new technology and procedures such as contactless cards, far off banking (earlier than the Internet and the PC), smart playing cards, biometrics (fingerprint and iris), touchtone banking, long earlier than the final products were ever announced never thoughts rolled out.

What the Technology providers had accomplished changed into to go into an informal partnership with the economic enterprise, using them as a sounding board and as a concept generator for brand new merchandise and procedures. In different words, the banking industry in the fields of generation and information processing have been being actively pushed by the era who legitimately had been developing their destiny sales through this casual partnership. Nothing incorrect with this in particular as the banks have been still very customer pushed. I say this due to the fact in those days the financial institution-consumer interface nevertheless had a human face to it. We saw our clients as real flesh and blood human beings and then consumer noticed the teller or the mortgage clerk as the personification of the financial institution.

The problem, of course, is that this technology pushed technique has persisted from the vendor facet. Today, however, the banks typically seem to have in large part forgotten that customers a human. To banks nowadays, customers have simply emerged as digital impulses on the other facet of a far-flung interface, be it an ATM, a PC or a cellular smartphone.

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In the case of Migrant Worker Remittances, these troubles and desires are two-fold. They are normally referred to as a “First and Last Mile” problems. The “First Mile” refers to the issues that the sender faces in anything us of he’s running in. This kind of problems range from issues like a lack of fluency in the local language, or no longer know-how local customs, or a loss of formal such as being an illegal immigrant or things like no longer understanding how or wherein to ship cash from. “Last Mile” troubles relate to issues that the receiver within the home us of faces and those are often similarly daunting. These type of problems ranging from the truth that the receiver won’t have a bank account, or there can be excessive prices on the extraordinarily low remittance or that the recipient may additionally need to journey for actually days to gather a small amount from the closest bank branch.