Community

Zennon - Yes, many HNWIs are very self-directed and once they can get an execution platform, feel they don't need an advisor anymore.

Ketharaman - Sorry, I don't buy this at all. Security is just not an issue in the way you are articulating it. It doesn't stop HNWIs from doing everyday banking, and sure the balances are higher, but HNWIs still want access to their portfolio for review and execution. This is a massive driver and is far stronger as an influencer than security concerns.

I'm sorry the data just doesn't support your assertion - in fact, exactly the opposite. Research strongly suggests that Private banking clients see the perceived lack of access as an issue where they don't have sufficient control of their money/portfolio and this is a much higher risk for them than the industry's internal perceived issue of security tied up with the use of the platform. The security argument is FI propoganda and not a real concern for customers any more.

Bo,

To illustrate your point, I was at the International Payments Summit last week in London where the discussion on NFC payments went something like this...

"Ok, we get NFC, but what's the big deal. A phone that acts like a credit card, is still basically a credit card. It just shifts from the plastic to the phone. We don't get what all the fuss is about..."

So I asked the crowd what's the one piece of information you need when you are using your card that you don't have today? No response. I asked what was the most requested piece of information through retail bank call centres today...no response. Of course it is the 'account balance'. 

So when you combine the account balance with the ability to pay with a phone based card, where you see the balance change reflected in real-time, how will this change your life? The amount of control you have is very different. It effects budgeting, spending habits, contextuality, etc.

The fact that no one had really thought of this really astounded me. It is the classic case of where the puck is, versus where we can go.

We need to imagine more about where we can go, and spend less time defending where we are...

Brett King, BANK 2.0 

David,

I think if you lead with total channel service as a proposition and show consumers that it is not just a cost savings/austerity measure there would be greater acceptance of this. 

The problem is, there is not the investment in the other channels to make that happen, largely because most executives still classify stuff like the internet as a transactional channel where migration is a cost savings measure. They don't build internet as a service channel, and they don't enable the conversation.

Just try emailing your bank and see how long it takes to get a response and you'll get what I mean...

BK

Johanthan,

My issue is not that Branches will remain - my issue is that it is just one choice of channel. The mix of spend/P&L is totally out of balance with customer behavior today IN ANY SEGMENT. 

Banks need to be channel agnostic and the spend or organization structure just doesn't even come close to reflecting that today.

Branch is not a superior channel to mobile, internet, social media, ATM, etc - it is just a channel.

Seen in that light, with appropriate metrics to understand the way customers engage - we will see a very different channel distribution structure emerge.

BK

Matt,

Yes, shame we have to wait for the iPhone 5 for NFC.

BK

John,

Thanks for your input. Most of my blogs on FinExtra get around 2,500 views. I would hope that this is because I have my finger on the pulse of issues relating to the broader community and not due to Apple's popularity :)

BK

Matt,

Agree - a single standard would be a great place to start, which is where there is an obvious opportunity for Visa, Mastercard, Monetize, etc to get together and launch on the basis of such. Of course, everyone wants to 'own' the standard, instead of operating within a standard, which is the problem.

BK

Maybe the title should have been "Think Mobile Payments is going to take years? You're wrong"

:)

BK

Aaron,

I'm sorry you've completely missed the point here by honing in on NFC. NFC, P2P, Mobile Payments are all one and the same when it comes to their ability to change behaviours. What I'm saying is if you think you need a POS infrastructure change to change people's behaviour you're dead wrong.

The mobile as a payment device is the game changer. Not because of NFC, not because of P2P, not because it can be adapted to replace some POS systems, not because of the tech...it will work because it is simple and because it will be part of a new ecosystem created by the likes of Google and Apple.

Everyone is sitting here arguing about tech or standards - I say step back from the detail and look at the big picture. Behaviour change and modality.

I firmly believe that NFC is part of that, but NFC is not the game changer - the mobile device is because we've already changed our behaviour around the device, and payments is just the next iteration. You guys get too focused on the detail - step back and look at the behavioural shift that has already taken place with mobile.

BK

Nick,

The concept that you can only pay a merchant through a POS terminal is erroneous. There are a number of alternatives. Pay via network using a merchant code, NFC to NFC phone payments, pay via SMS, etc

I just don't believe lack of contactless POS is going to slow down adoption of this technology.

BK