Mobile Banking Updates - Jun 20

Mobile banking vulnerable to laundering, terror funding: RBI
"Reserve Bank Governor D Subbarao today said mobile banking should be driven by banks, not telecom operators, considering money laundering and terror financing threats. 'The Reserve Bank has a clear preference for the bank-led model,' RBI Governor D Subbarao said at a Banking Technology Excellence awards function hosted by the Institute for Development and Research in Banking Technology (IDRBT). 'Given the growing concerns about money laundering and financing of terrorism, a bank-led model is decidedly safer and more sustainable,' he said, adding, however, that a mobile operator-led model helps accelerate financial inclusion."

Fiserv Signs Over 100 FIs for ZashPay Person-to-Person Payments Service
"Fiserv has announced that more than 100 financial institutions have already committed to offer its ZashPay person-to-person (P2P) payments service. Fiserv says that 'banks and credit unions across the United States, ranging in size from small community institutions to top 50 banks, have signed up to offer the service, with continued interest and signings expected throughout the summer.'"

Mobile Users Want Android, Banks Don't Have It
"Jeff Peiffer was so frustrated that his bank didn't offer an app for his phone that he made one himself, put it online — and watched it become one of the top finance downloads for Android handsets. The success of Peiffer's software offers an important lesson for financial companies that have not yet developed apps for phones using Google Inc.'s operating system: Android users are among the most active mobile banking users. Many banks are not meeting that demand, however, and observers say that by neglecting that market banks are training people to be more accepting of third-party software, an approach that could cost them users in the long run and, in the wrong hands, might also open the door to fraud."

Fraud and Mobility are Top Priorities for Bankers, According to Fundtech Survey
"While only 10% of the bankers said they have already deployed mobile business banking services, 39% said they will be deploying mobile services within 6-12 months. This is in sharp contrast to the strong growth of consumer mobile banking, where 57% of American banks are expected to offer a solution by the end of 2010. This can be attributed to the moderate interest bankers see from among their business clients. Only 26% of respondents said that there is strong interest in mobile business banking services among their clients, and nearly 60% said that curiosity was driving this interest and that these are "early days." Polling results also indicate that the adoption of mobile financial services will be evenly adopted across large, mid-sized and small businesses and corporate clients."

Vodafone Mobile Banking: From M-Pesa to M-Kesho
"M-PESA, Vodafone’s game-changing money transfer technology, now provides customers with the ability to link to an interest bearing savings account and buy insurance via their mobile. The service, which is operated by Safaricom in Kenya offers customers the chance to save money using a direct link to Equity Bank. It will provide a safe and secure service for many millions of Kenyans who currently do not have access to a bank account and so are unable to save money in a secure environment."