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Matt,

Let's drop the hyperbole and look at the facts.

Safety.

I didn't say the method was immune to fraud. However, as we move to NFC, which will be the pervasive mobile payments tech, the use of dual security measures on the phone (EMV and SIM encryption) along with embedded authentication make this at least 300% more secure than physical cash or card. Chip & PIN is an improvement, but we need to make it tougher for those intent on such nefarious activites.

Speed

The average mobile interaction takes 6-9 seconds, while cash takes upwards of 10-15 seconds. That's half the time.

Easier than Cash

No more searching for an ATM to get cash out...

Great Feedback on Transactions

The average bank and credit card statement is appalling in respect to the feedback we get on the merchant, purchase, transaction, etc. We absolutely need a revolution in this respect. Additionally, such data will be the driver for both improvements in PFM and in better, highly targeted marketing approaches.

Better Deals and the "App" question

The ability to contextually offer you deals because your phone is both a payment device and a mobile information platform are extremely compelling. If you don't understand this, examine the $6 Billion offer Google made to Groupon.

Obviously we will soon be dealing with a Android based payment system, versus an Apple/iTunes based system, with Visa/Mastercard et al also competing. My guess is it won't be long before there is a single App you can use for every payment interaction, so this is a non starter.

This is not Hyperbole - this is 1.0 versus 2.0 thinking. We are in the midst of a serious modality shift based on behavior. It's not about the technology, it is about a better, simpler experience at the POS. Cash may survive for a time, but the concept that you can hold back the impetus here in favor for a long outmoded system is ludicrous.

Everyone has a choice, of course, but I think the rate at which this change will be effected will catch most by surprise. 

Dean,

I'm advocating the fact that filtering will result in any non-essential communications being relegated to trivial in our effort to process the net flow of content. In this scenario, FIs will have to figure out how to prioritize content and deliver it in a way that customers want.

No more bank statement envelopes stuffed with direct mail offers, etc.

BK 

Liz - it wasn't meant to be a ranking/priority, but agree. Data management and data silos are absolutely essential to resolving for future success.

Ketharaman - I think banks are going to have to start measuring success of the relationship very differently moving forward. Where is the real value?

Rob,

The tipping point will be 2011 with NFC. But it will take a while to kill off in it's entirety due to existing inertia.

BK

The answer is about 1 year :)

BK

Dean,

Absolutely! So what gets valued in this is innovation, speed to market, ability to build seamless customer experience in a multi-channel environment, etc.

Thanks for taking the time to make a comment.

Brett

John,

The problem is that your experience isn't uncommon. A bank that sucks the least, is just not a good enough strategic positioning. We need to have banks that really do want to reengineer customer experiences in a positive way, and aren't prepared to let embedded processes, silos, perceived compliance hurdles and risk mitigation strategies derail that.

BK 

Stephen,

The simple answer is that banks write an API layer encompassing the required security and authentication layers, and give developers a secure 'sandbox' to develop within. In this way, not only can such be done securely, but real testing of the environment can be incorporated into the development life cycle in a more constructive manner than is currently embedded in projects that are only exposed internally.

Brett King

Jacqui,

The next big realization from banks will be not that they have to innovate or change, but that the time they have to stay ahead of non-bank competitors is now severely compressed. Innovation cycles are speeding up...

Thanks for stopping by.

BK

Rob,

That was not my attempt to close out the discussion, but a nice way to round out what I expected was a more moderate view.

On your clarification, thanks. Certainly adds fuel to the discussion.

Brett King, BANK 2.0