Telecom Mobile Financial Solutions
How Financial Service Providers can Facilitate Financial Enrichment for the Masses with Next-gen Digital Financial Solutions
Financial inclusion today has become a reality worldwide, thanks largely to mobile money, which has empowered the unbanked and the under-banked with access to various financial products and services. Mobile money has moved beyond basic one-on-one payments to provision a wide range of integrated financial solutions to the masses, including savings and loans products. This has been possible due to ability of mobile money platforms to integrate with the broader ecosystem of billers, merchants, banks and third-party payment systems.
While mobile money is solving the financial inclusion need in low income and lower-middle income countries, in high income and higher-middle income countries digital wallets are facilitating convenient and secure instant payments. Digital wallets serve as one-stop, quasi-financial accounts for customers to carry out various financial transactions. The usage of digital wallets is becoming near pervasive by the day, with consumers using them for e-commerce, transportation, media, entertainment and so on.
These dynamics have profound implications for telecom operators, banks, merchant acquirers, retailers and other businesses in both advanced and developing nations. We are now at an inflexion point in the global digital financial revolution where the increasing mobile phone penetration and the ease of use of over-the-top solutions can foster a transition from financial inclusion to financial enrichment.
For such a transition to happen, though, the other stakeholder involved in the transaction, i.e. the merchant, needs to be equipped with the requisite tools and capabilities. A common challenge confronting many merchants today is an inability to keep pace with gorwing number of digital payment instruments available to the customer, such as cards, digital wallets and biometric payments.
This is where banks, merchant acquirers, telcos and retailers can enable thier merchants with an end-to-end, scalable and secure infrastructure platform that accepts mobile payments via various channels, while lowering processing costs. Operators should design and build such a solution keeping four essential prerequisites in mind. The platform must provision a single, integrated interface for accepting mobile payments from credit/debit cards, digital wallets, QR Codes, biometrics-based accounts, etc. In conjunction, it should let merchants track their sales across multiple channels via a dashboard.
For the online merchants the platform needs to ensure zero failed payments by offering a next-generation payment gateway for billers, merchants and other vendors, so that the customer’s checkout experience is enhanced and processing costs are optimized.
Moreover, the financial infrastructure solution should provision a compelling mobile wallet that allows end customers to carry out transactions in the mode they prefer. In order to ensure a cohesive pre-payment, payment and post-payment experience for the customer, the wallet also must integrate location, payments, identity, loyalty, social media and other parameters.
In the age of consumer internet companies like Facebook, Amazon, Netflix and Google (FANG), it is important for the banks that are serious about building digital businesses to learn from the FAANG’s successful execution of their digital strategy. New age Digital Banking Experience platforms can enable banks to not only build, manage and control the omnichannel experiences but also continuously iterate and engage the consumers, through instant configuration capability, marketing automation, personalization and experimentation engine.
In a world where experience is everything, financial services, too, need to be reimagined for the digitally empowered customer. Financial service providers including banks, merchant acquirers, telcos, retailers and other parties have to leverage next-gen digital financial solutions to deliver a more personalized, seamless, consistent and secure experience, thereby enhancing the customer’s value, and, subsequently, profitably transition to the digital age.
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