This study addresses the mobile banking penetration strategy for a telco.

After a review of the disruptions that reconfigure the banking market, the study focuses on the various strategic questions that may arise when a telco is launching such an initiative: How does mobile banking make sense for a telco? What sort of mobile financial services can a telco provide? How should a telco enter the mobile banking market? How much does it cost and how much revenue could it produce?

The study is based on the analysis of mobile banking and mobile payment initiatives launched by telcos of which: M-Pesa, M-Shwari, Orange Money, Telenor Banka, Orange Finance, Orange Cash, O2 Banking and Orange Bank. These examples, representative in many respects of the diversity of telcos (geography, typology of services, chronology of services and similar factors.) are also representative of different penetration models of the mobile banking market and are each subject to business cases. Other examples, from telcos, fintechs or the Internet giants, also illustrate the point.

Table des matières

1. Executive Summary
1.1. Key findings
1.2. Recommendations: one solution for entering the mobile banking market is to share the risk with a banking partner

2. Methodology & introduction
2.1. General methodology of IDATE DigiWorld’s reports
2.2. Introduction: the online banking revolution will continue, relentlessly
2.2.1. Regulatory disruption: with banking regulation new entrants can change banking market
2.2.2. Technological disruption: new technologies and user-centric UX open the banking market to fintech
2.2.3. Business model disruption: new business models are opening the market to new data-driven entrants
2.2.4. Conclusion: the banking and payment industry is transiting major change, with new entrants

3. How M-Banking makes sense for telcos
3.1. Traditional key players in electronic payment value chain
3.2. New players on the banking value chain
3.3. New opportunities for telcos – direct and indirect – on the value chain

4. The sort of mobile financial services a telco can provide
4.1. Type of mobile financial services from mobile payment to mobile banking
4.1.1. Mobile payment
4.1.2. Mobile banking
4.1.3. Advanced mobile banking
4.2. Assessment of service-wise market potential for a telco
4.2.1. Banks and telco financial services perspective
4.2.2. Service-wise market potential valuation for telcos
4.3. Value-added services proposition to a telco’s customers

5. The best way for a telco to enter the mobile banking market
5.1. Types of variables which may influence the penetration strategy
5.2. Partnership approach to enter the banking market
5.2.1. With or without a banking partner?
5.2.2. What type of partnership?
5.2.3. What type of partner?
5.3. Eight illustrative business cases of different penetration strategies
5.3.1. Telco-only business model
5.3.2. Bank-led partnership business model
5.3.3. Partnership 50/50 business model
5.3.4. Telco-led partnership business model

6. The costs of m-banking, and its revenues
6.1. Mobile banking market opportunity
6.2. Business model
6.2.1. Cases of profitable mobile banking by telcos are originating in developing countries with a sizeable opportunity among the unbanked
6.2.2. In developed countries, the prime example of profitable mobile banking are to be found in fintech initiatives that focused on niche services and applied a low-cost strategy to acquire a mass audience.
6.3. Costs and revenues breakdown
6.3.1. Revenues: direct revenues are not the only sources of revenue for a telco
6.3.2. Costs: financing requirement is mainly driven by customer growth

Table des figures

Table des figures

Figure 1: A new wave of banking revolution
Figure 2: Changes in the banking market
Figure 3: Key Regulatory and Industry Initiatives (KRIIs) clustered by regulators’ primary objectives, 2017
Figure 4: Number of users for largest banks, Telco and digital players in the World
Figure 5: Three major changes in the banking market that
Figure 6: Traditional electronic payment value chain
Figure 7: New entrants’ stakes: controlling the relationship with the consumer and integrating value chain
Table 1: Advantages and challenges of competitors
Figure 8: New direct and indirect opportunities for Telco
Figure 9: Type of mobile financial services from mobile payment to mobile banking
Figure 10: Telco could reach more value by adding mobile banking services to their offering
Figure 11: Service-wise market potential valuation for Telco
Figure 12: Telco source of differentiation
Figure 13: Fintech and mobile banking app example: a focus on design, UX or niche segment to differentiate
Figure 14: Customer-centric UX best practices
Figure 15: Orange financial services strategy depends on the specifics of market
Figure 16: Type of Business Model
Table 2: example of business model and related characteristics
Figure 17: Type of business model
Figure 18: Type of Business Model
Figure 19: Fintech according to their regulation status
Figure 20: M-Pesa
Figure 21: Orange Cash
Figure 22: Orange Money
Figure 23: Orange Finance
Figure 24: M-Shwari
Figure 25: O2 Banking
Figure 26: Telenor Banka
Figure 27: Orange Bank
Figure 28: Number of registered and active customers, by region (December 2016)
Figure 29: MTN’s Mobile Money EBITDA
Figure 30: Orange Money Journey
Figure 31: N26 Business Model used to be the example for Orange Bank
Figure 32: Number of clients to break even elements
Figure 33: Direct and indirect revenues contribution to gross-profit of MTN’s MobileMoney
Figure 34: Costs split
Figure 35: Illustrative set-up costs to implement mobile banking

Secteur géographique



  • Alibaba Group
  • Amazon Pay
  • American Express
  • Android Pay
  • Apple Pay
  • Bank of America
  • Bitcoin
  • Cardlytics
  • Chase
  • Daimler Financial Services
  • First Data
  • Globalpayments
  • Groupama
  • IFC
  • KBC Banka
  • LearnVest
  • Lenddo
  • MasterCard
  • Mint
  • Moven
  • M-Pesa
  • M-Shwari
  • MTN
  • MTN’MobileMoney
  • O2 Banking
  • Orange Bank
  • Orange Cash
  • Orange Finanse
  • Orange Money
  • Paymentech
  • PayPal
  • Safaricom
  • Samsung Pay
  • Simple
  • Telenor Serbia
  • Visa
  • Vodacom

Autres détails

  • Référence : M18130MRA
  • Livraison : on the DigiWorld Interactive platform
  • Langues disponibles : Anglais
  • Tags : electronic payment, M-Banking, mobile banking, mobile payment, online banking, payment industry, retail banking, telco

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