Mobile financial services in Singapore has immense potential to grow the reach of financial services, according to a newly released report by Ernst & Young Solutions.
These services can also increase the convenience and ease of use for customers around the world, particularly in emerging markets.
Singapore exhibits a high mobile penetration rate of more than 100 percent, says the report titled 'Decoding mobile financial services - Innovation and collaboration to drive growth'.
Telecommunication operators in the nation can tap the lucrative sector of mobile financial services to differentiate customer service and experience and ultimately improve ARPU (average revenue per user).
"The area of mobile financial services is at the tip of a digital iceberg. We expect to see the world change the way banking is done in the next two to five years, as both telcos and financial institutions leverage mobile as a platform for growth," said Prashant Singhal, EY Global Telecommunications Leader.
Growing uptake in Asia-Pacific
Globally, the Asia-Pacific region is the second fastest-growing at a CAGR of 9 percent for the 2010 to 2015 period, in terms of the growing uptake of mobile-based financial services.
India, the Philippines, Democratic Republic of Congo, Colombia and Tanzania are the top nations that have the highest number of unbanked people with the potential to be served by mobile financial services.
Mobile financial services can specifically help the financial institutions to serve a vast mass market, which may be out of reach due to factors such as high physical infrastructure costs.
The telecommunications providers (telcos) can leverage mobile financial services to create an additional revenue stream and cross-sell services.
"Given complementary competencies and infrastructure, they are well-positioned to collaborate, bring synergies and innovation to mobile financial services and meet changing customer demands," added Singhal.
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