Nokia to Launch Mobile Bank Accounts in 2010

It's been confirmed that Nokia will enter the mobile banking market in 2010, after they recently purchased a stake in the mobile payments company Obopay. The launch of Nokia Money will allow users to pay for products, pay bills, top-up SIM cards using their mobile phone. It will also allow customers to send money to their mates just by using the person's phone number.

In amongst their plans, Nokia will aim to build a network of Nokia Money agents, or Automatic Teller Machines (ATMs) to be more flexible with their customer base.

Although Obopay already exists in a WAP format (see the iPhone demo below), Nokia predict that mobile payments will be the next big thing in the financial services industry.



Nokia could bring banking access to hundreds of millions of people, both urban and rural, who are undeserved by existing payment means, especially in emerging economies.

As Mary McDowell, Nokia executive, said:

"In many countries, mobile phone ownership significantly exceeds bank account usage, suggesting that many mobile phone users have very limited or no access to basic financial services. With more than 4 billion mobile phone users and only 1.6 billion bank accounts, global demand for access to financial services presents a strong opportunity to combine mobile devices with simple but powerful financial services such as Nokia Money."

The service will be available across different operator networks and on virtually any mobile phone, rolling out in Germany in September, before launching in specific markets in 2010.

What are the other benefits to consumers and opportunities for Telcos?

• This could significantly increase the use of mobile devices in general.
• Potentially break the age barrier of under 18y.o. Pre-Paid customers who don't own a credit card, to recharge their service on the run.
• Safety or convenience - send someone in need, money for extra credit, or to catch a cab late at night, or even in case you just need an extra $10 to buy that thing in the shop window.
• Gift - even though its still more exciting to get money from your Grandma when its tucked away in your birthday card, Grandma could instead get all tech savvy and send you money via her mobile phone. Wow, what a treat!

I'm sure there are many other benefits and opportunities, so if you think of any, please leave a comment.

Cheers,
Greg

Read the original article by Dan Leahul from Brand Republic 28 August 2009.