MWC Day 1 - will 'nomophobia' ever come to banking?

Global mobile data traffic will increase 18-fold between 2011 and 2016, according to Cisco, rising at a compound annual growth rate (CAGR) of 78% from 2011 to 2016. At this rate, by 2016, we really will be in the middle of a mobile data explosion. Of course, 4G and the anticipated growth in video calling will form a huge part of this peak in mobile data traffic. But the figures also reflect the growing reliance that people have for their mobile device – both within the business environment and their personal lives. The mobile phone has become indispensable to many, with lives converging on this single device. This sense of dependence has even been diagnosed as a condition – nomophobia – or the fear of being out of mobile phone contact.

While people obsess about being connected, the financial services industry is dragging its heels in making the mobile phone indispensable to banking. Using your mobile for even the most basic of banking services is still the exception, rather than the rule. So, how to make things change?

For me, the key lies in two main areas: innovation and partnerships. Innovation is about deploying market-leading digital services, and also competing with new players that are using digital technology to disrupt the traditional banking model. I’ve talked about this in detail in a previous blog. Partnerships are about financial institutions realising that they don’t have to and, indeed shouldn’t, strive for innovation alone. I plan to blog more about this from MWC later.

While banks may not wish to go so far as to diagnose a customer with nomophobia, they do risk missing out on a huge societal trend (and the associated business benefits) if they don’t start to offer customers greater services via the mobile device.