"Brandon McGee, Industry Insider, Mobile Banking Guru...He is not only the real deal, a genuine industry insider, but also knows exactly what's on the minds of financial service pros as they contemplate the various mobile options." - Jim Bruene, Publisher & Founder, Online Financial Innovations

"Going Mobile. Local executive carves niche as national expert on fast-growing banking-industry technology trend" - Scott Olson, Indianapolis Business Journal (IBJ)

"Brandon McGee, the industry's unofficial ambassador for mobile banking" 

Sunday, May 3, 2009

Mobile Banking Security and Revenue

Earlier today I found the article "Is Mobile Banking Safe?" by James Charles on PaymentsNews.com

At a high-level the article does a good job of explaining the security of each channel (Mobile Browser, SMS, Application.) Yet, the most interesting fact is that Lloyds TSB is still able to charge their clients the equivalent of $3.75/month.

Can you imagine?

Now, I know of a handful of institutions that are hovering at or above the 1 million user mark. So, lets run some quick numbers...

Lets say that $3.75/month is a tad to expensive. Instead we'll base the calculation on $1.99/month or $23.88/year. Next, lets say that only half of the existing users would be willing to pay for the service.

That would equate to $11,940,000 of NEW fee income - PER YEAR! In today's market that might just be enough to justify a promotion.

1 comment:

Anonymous said...

Here in NZ all the main banks charge usage fees of some type for access to mobile phone banking based services.

Customers will pay to use a service they value. The US banks wasted this opportunity and it will be very difficult to introduce mobile banking fees from here on in.