Mobile Banking Updates - Sept 7

Next Step for Microfinance: Taking Deposits
"Some 30 years ago, the field of microfinance was born from a radical concept: poor people, when lent small amounts of money, will pay it back in a timely manner. In the meantime, that money can be put to use in ways that help boost income — goat-farming, say, or carpet-weaving — and, ostensibly, raise a family's standard of living. Now another radical concept is starting to take hold: that the thing people really need, more than business loans, is a safe place to save their money. It's what development expert Robert Vogel calls the 'forgotten half of rural finance.'"

Make mobile banking secure with remote handset block, says minister
"As Nokia confirms plans to enter the mobile banking market using technology it acquired with the recent purchase of Obopay, fears have arisen that stolen handsets could enable criminals to access users' bank accounts. In an attempt to reassure consumers, the UK government has issued guidelines detailing how the handset should be disabled when reported lost or stolen.

In association with the mobile payment industry, the government is calling for the SIM card to be blocked to stop mobile banking access, as well as immobilising the contactless payment function for transactions over €12. If a large number of smaller payments are noted in quick succession, these will also require verification, according to the guidelines."

Diebold's Mobile Banking Plans for the U.S.
"Companies such as Nokia have been cashing in on mobile banking in emerging markets including India, Brazil, and South Africa. The success is in part due to the large number of people in these areas who have mobile phones but do not yet have access to land lines and Internet. Will well-wired American consumers have the same demand for this service? Diebold believes there is potential."

More CUs Plan Mobile Banking Adoption but Proceeding With Caution
"Credit unions are taking a step out of the dark ages and increasingly looking to adopt new technological services, like mobile banking, according to data from Callahan & Associates.

WAP/mobile browser service appears to be the most popular approach to offering mobile banking. In “Callahan’s Technology Guide,” 26% of credit unions surveyed said that they anticipate adopting WAP/mobile browsing in 2009 and 43% said they anticipate adopting it in 2010. This compares to 23% that planned to adopt SMS/text message in 2009 and 39% in 2010. Fifteen percent said they are adopting a downloadable program in 2009 and 30% said they plan to in 2010."

UCI Institute for Money, Technology & Financial Inclusion awards inaugural grants
"UC Irvine's newly established Institute for Money, Technology and Financial Inclusion (IMTFI) has awarded its first group of annual grants totaling $230,000 for research projects aimed at understanding how the world's poorest people spend, store and save money. "