The Homa Files

Excerpted from AdAge, “Banks Can Keep Customers, Make Money With Mobile” by Rita Chang, Jan 5, 2009
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Bankers who want to cut customer churn and make money should look no further than the mobile device in their pockets,.

Generally, banks have largely viewed the channel as a way to generate savings by diverting customer service away from call centers or interactive voice response. But at some point, they have to look beyond saving overhead and use mobile as a revenue generator.

A big piece of that will depend on the adoption of near-field communication (NFC) payments…What are NFC payments? It’s when a phone can be used to pay for a transaction because it has an on-board commerce chip that can talk with a receiving chip inside a point-of-sale device.

NFC is made for speedy, high-volume transactions…because all consumers have to do is tap their phone against a reader and input a password, which is quicker than using cash…Each time credit is used, the issuing bank gets a cut of the total transaction.

The market isn’t quite there in the U.S. yet, as the phones supporting these transactions are not available…Still, today banks should be looking at mobile as another channel that consumers can use to interact with it, in addition to the ATMs, phone and online — essentially deepening their relationships and averting defection…

Edit by SAC
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Full Article:
http://adage.com/digitalnext/article?article_id=133568
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This entry was posted on January 17, 2009 at 6:55 am and is filed under Banks - Credit Cards. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.