In order to gauge MNOs’ (Mobile Network Operators) attitude to MFS (Mobile Financial Services), Ericsson and Juniper Research conducted a survey of decision makers responsible for MFS at 46 MNOs across 35 countries spread across Africa, Middle East, Asia Pacific and Americas. Telcos are set to prioritize Mobile Financial Services for revenue diversification and their shift into digital service providers, with an anticipated 45% growth in the next five years.
Ericsson, in collaboration with Juniper Research, unveils the report „What Will Drive Mobile Financial Services’ Growth?”, providing insights into the dynamics of Mobile Financial Services (MFS) and transformative opportunities for Mobile Network Operators (MNOs) globally.
The report consolidates insights from 46 senior decision-makers from Mobile Network Operators (MNOs) across 35 countries and projects a paradigm shift with an expected 40% user adoption rate and an 80% growth in transaction value over the next five years. This signals a substantial transformation, positioning MFS as a key element in the shift among Telcos to become digital service providers, foreseeing an impressive 45% growth specifically in their MFS revenue.
Key accelerators identified in the report include customer incentives, extensive last-mile networks, and the surge in COVID-19 digital payments. These factors propel MFS success and enable broader financial inclusion and access. However, regulatory challenges, enduring cash preferences, and security concerns pose significant obstacles, demanding strategic navigation from industry stakeholders.
A pivotal aspect highlighted in the report is the evolution of service portfolios towards advanced offerings like micro-finance and investments. This shift not only reshapes revenue models but enhances user experiences, marking a turning point in the industry’s trajectory. MFS providers are strategically pivoting towards these advanced services, fostering innovation and driving economic empowerment across diverse demographics.
The key findings of the survey are:
. 40% of mobile network operator user bases will be actively using mobile financial services in the next five years.
. 80% growth in mobile financial services transaction value anticipated over the next five years.
. Customer Incentives, extensive last-mile networks and COVID-19 digital payments surge lead top ten factors that have accelerated mobile financial services success.
. Advanced services to drive mobile financial services growth over the next 5 years.
. QR Code, AI/ML and NFC lead list of technologies that will have most impact on mobile financial services over the next five years.
. Mobile network operators are focused on extending payments and international remittances via partnerships with merchants and money transfer operators.
. Regulations and taxation, enduring preferences for cash and security concerns are key challenges inhibiting MFS growth.
. Service portfolios are evolving rapidly, with banking tech and value-added services taking the lead.
. Mobile financial services critical for enabling revenue growth and diversification for mobile network operators.
. Enabling SDGs, access to formal financial services and financial inclusion are the biggest social benefits of mobile financial services.
Michael Wallis-Brown – Head of Mobile Financial Services at Ericsson, emphasizes, „Mobile Financial Services are transformative for Telcos, positioning them as digital innovators and unlocking new invaluable new revenue streams. Integrating MFS enables Telcos to anticipate consumer demands, adapt to market trends, and stay competitive.”
Nick Maynard – VP of Fintech Market Research at Juniper Research commented “What is striking is how massive the changes coming for mobile financial services are. MNOs we surveyed are expecting advanced services to be transformative, both for their service portfolios and for their revenue, and we expect this to have an enormous impact over the next five years”.
Report: Gain in-depth insights into the future of Mobile Financial Services by downloading the full findings here.
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Ericsson’s Mobile Financial Services empowers Mobile Network Operators and financial service providers to deliver secure and innovative financial solutions, fostering global financial inclusion. Its solution, Ericsson Wallet Platform, boasts support for over 400 million registered mobile wallets, processing 2.8 billion transactions valued at over $40 billion monthly.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
