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MOBILE PHONES AND BANKING - OPPORTUNITIES FOR SCOTLAND

Scottish Financial Enterprise and Logica hosted an event in Edinburgh this week highlighting the business case for mobile banking and payments in Scotland.

Financial services companies will hear how mobiles could bring benefits to business and customers, in rural and urban areas of the country.

Mobile banking has already had a major impact in the Far East, New Zealand and the Netherlands where mobiles are used regularly for account services, including person-to-person payments, interactive secure transfers and, account balance viewing.

In comparison, the development and adoption of mobile banking is yet to take off in the UK .But the advent of Faster Payments (a banking initiative to improve the speed of low value person to person or business to business payments to near real time)  means customer  demand for access to banking and payments from the mobile phone is likely to grow. And Scotland’s geography and economic profile make it a particularly attractive option for consumers.

Benefits that have been seen to accrue from using mobiles for banking are:
• the means to effectively reach existing and new consumers,
• generation of increased revenue from new, innovative services,
• increased customer satisfaction,
• a reduction in operational costs,
• strategic new positioning of the brand.

As mobile payment straddles the telecom and financial service industries, one of the key issues is who will take the lead in providing services for the mobile banking customer. The Logica/SFE event urged Scotland’s top financial institutions to take the initiative on mobile banking and retain control of delivering the service to their customers rather than gifting it to mobile operators, or other retail institutions.

Nigel Spencer, Director of Financial Services Transformation within Logica’s Global Financial Services business, led the call to the Scottish financial services sector:

“Financial institutions in this country are set to profit from being the bank in customers’ pockets – through their mobiles. This is especially important in relation to capturing and retaining relationships with the youth market, the hard to reach generation Y, their customer base of the future.  But the UK banks have yet to seize this opportunity.”
 
John Copping, Head of Mobile Channels within Logica’s Commercial, Transport and Finance Division, added: “Examples like Kiwibank in New Zealand show the potential of targeting the youth market in particular. It has won awards for its mobile facilities which let customers use their phones for virtually all the services available on the internet. For Kiwibank mobile banking is a key part of the multi-channel strategy. Its adoption of groundbreaking technology has led the way with other banks now playing catch up. It did not limit itself to one mobile service provider.”

Owen Kelly, Chief Executive of Scottish Financial Enterprise, said: “Our financial institutions operate internationally and understand that innovation is essential to keep pace with the market  . We all have mobiles and, with increasing pressures on time, it makes sense to improve the ability to manage finances on the move.

“There are obvious advantages of such systems for Scotland. They bring new opportunities to rural communities where people often live a long way from their nearest branch. Customers might not have a computer, but they are likely to own a mobile.

“ And Scotland also has a significant smaller-to-medium enterprise market . Tradesmen for example would be able to increasingly manage their businesses remotely while getting on with their day-to-day business. Overall, mobile phone banking can bring new opportunities for business and greater choice for consumers. “

To view Logica's presentation click here

NOTES TO EDITORS

1. To speak to John Copping, Head of Mobile Channels within Logica’s Commercial, Transport and Finance Division, contact Joanna Wood (Joanna.wood@trimediauk.com) or Martin Allen (martin.allen@trimediauk.com) at Trimedia on 0131 226 2363 . To speak to Owen Kelly contact Mary Mowat 0131 247 7700.

2. Logica is a leading IT and business services company, employing 39,000 people across 36 countries. It provides business consulting, systems integration, and IT and business process outsourcing services.  Logica works closely with its customers to release their potential - enabling change that increases their efficiency, accelerates growth and manages risk.  It applies its deep industry knowledge, technical excellence and global delivery expertise to help its customers build leadership positions in their markets. Logica is listed on both the London Stock Exchange and Euronext (Amsterdam) (LSE: LOG; Euronext: LOG). More information is available at www.logica.com.

3. Scottish Financial Enterprise (SFE) is the independent organisation that supports and represents the interests of Scotland’s financial services industry.  SFE’s members come from all sectors of the industry operating from Scotland including banks and building societies, general insurance, life assurance and pensions, fund management, asset servicing, corporate finance and broking services, professional advisors and support services.  In total, SFE members account for over 70 per cent of the 108,000 people directly employed within Scotland’s financial services industry.
The key focus of SFE’s work is: lobbying for improvements to the business environment that Scotland provides for the financial services industry; influencing government, regulators and other policy-makers, mainly in Scotland, Westminster and Brussels, by facilitating engagement between them and its members; and promoting greater awareness, understanding and support of Scotland’s financial services industry and the issues concerning it. For more information about SFE and Scotland’s financial services industry, please visit www.sfe.org.uk.

Mary Mowat
Scottish Financial Enterprise
0131 247 7700

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