In our first mobile world, the lines between communications and financial services were unclear. People – including me – use their portable devices for everything, and banks do not want to leave behind or be just another application between dozens of other options. This is especially true with the expansion of Fintechs to a broader set of financial services and technology giants, such as Apple and Google, in payments and other financial services.
For their part, telecommunications companies want to provide more than just the infrastructure for the first world of mobile phone. Like banks, they want to be central as it becomes the first world of mobile phone. Financial services provide an ideal way for telecommunications companies to demand a greater share of mobile phones’ pie, and banks can win a more central center in people’s economic lives by facilitating convergence of communications and financial services.
With the passage of rapprochement, individual banks and communications companies have three options. They can notice from the margin, or saturated in converging services, or driving the road. Leaders in both industries have an unprecedented opportunity to apostasy forward, and to gain revenues and adoption.
Slow drivers risk giving up the trend ready to generate a huge value to customers. This is especially true as obstetric artificial intelligence has the ability to reduce and accelerate the most challenging aspects of rapprochement.
Through regions, there are many evidence of the convergence of banking and communications services. N26 in Germany provides an interesting and explicit example. Neobank, N26, has provided banking services in Germany since 2013. It has recently launched a digital phone show. Customers simply activate a plan from within the mobile phone application. What about infrastructure? Vodafone Germany collaborated with N26 to provide contact, while increasing Telco Giant’s revenues while avoiding marketing spending.
N26 can expect competition. Digital Digital European launches a similar mobile service. Revolution operates the MVNO virtual network operator (MVNO), which means that it reaches the infrastructure through leasing instead of partnership. Like other mvnos, Revolution plans to provide a low -cost service to attract customers, and the deal will decompose with loyalty points.
On the side of Telco, many telecommunications service providers, especially in the developing world, have provided digital portfolios for years. In 2016, Yoma and Telenor Myanmar Bank held a partnership to launch a digital portfolio called Wave Money in Myanmar. Today, it serves 35 million customers. Orange Money and Vodapy in Africa provides examples similar to the success of the digital wallet.
The energy -powered financial services in Telco are not limited to the developing world. Rogers Communications in Canada runs a bank that offers credit cards and digital portfolios. In Norway, three operators are listed for mobile phones to create a Strex payment platform. Success has inspired Strex to enhance their service to help traders in e -commerce access to more customers.
As it becomes clear from the above examples, the convergence of communications and banking services takes multiple forms – all of which are almost all centered on mobile phone services. The mobile devices are the new High Street or Town Square Street. Connecting financial services to an intuitive contact, such as the owner of a store that adds a modern production line to their shelves – but with more technical challenges and customer service.
In many ways, the need to include the undertaking trend, with digital portfolios linked to applications that link non -designers and a financial services factory, especially payments. The convergence services described above are a continuation of the direction. Since rapprochement collects momentum, telecommunications companies will see inspired to provide customers with more inclusive financing options, such as Buy Now Pay later.
On the banking side, the success of the N26 may lead to the launch of communication services. Cooperation paves the way for more innovation, especially in the markets, where telecommunications companies play major roles in digital identity programs. In those markets, such as India and Estonia, telecommunications companies support the identity infrastructure that speeds up the provision of financial services and know your customer requirements.
What can grow in this fertile bank and the TELCO ecosystem over the three years to the next five? Superraps. More specifically, experimental partnerships expand to fully integrated platforms that include payments, communication, loans, insurance and Internet of Things. With other partners joining, Superasps will include a reliable and reliable market, lifestyle and trade market.
GENAI has the ability to bring an integrated experience to Superaps. Imagine a financial trainer who works in artificial intelligence intelligence helps to direct customer options through the Suppptap. AI can also soften “layers” of integration that can create friction when many companies try to connect services.
The funding and communication SuperPPs has already been established with the already surrendering the cornerstone in many markets, including Rakuten in Japan, Paytm in India, and the seizure of Southeast Asia. North America and Europe lack similar SuperPPS. However, the convergence of telecommunications companies and banks – and their ability to fuel growth with loyalty programs – will stimulate the appearance of new “everything” platforms, which will develop into SuperPs in more markets.
Banks and telecom companies put themselves to win the next rapprochement by taking steps to expand capabilities and form partnerships. You can walk forward with the Go-IT-Alone strategy, but you will likely get more fastest with an ally. Through partnership, telecommunications and banking companies can obtain the advantages of growth, loyalty and revenues for expanded services – without the need to master the details of a new industry. The first step? It constitutes a partnership and creation of a joint innovation laboratory for a preliminary model and testing converging services. To accelerate progress, Upskill teams in AI, Security, and design digital experience to support rapprochement initiatives. Make sure to maintain customer confidence by setting the priorities of data ethics, transparency and approval.
In addition to searching for partnerships with telecommunications companies, banks must:
-
Invest in modern API structures that allow open financing and smooth complementarity with telecom platforms and other third -party services.
-
Think about providing customer communication services either through joint services with a pioneering comprehensive company or by exploring MVNO models that use rented infrastructure.
-
Developing guaranteed financing strategies that include lending, insurance and wealth management in order to include services in the ecosystems of Telco.
-
Expediting innovation that supports artificial intelligence by emphasizing the cases of use that can redefine a rapprochement model, such as the subscription led by artificial intelligence and independent financial coordination.
You must:
-
Build or obtain digital portfolio capabilities as a first step and explore options to add organized financial products in cooperation with traditional banks.
-
Enhancing data management frameworks and compliance to prepare for the organizational complexity of financial services.
-
Participate with banks to participate in the creation of reliable products that benefit from your customer relationships to simplify operations such as credit registration, discovery and fraud detection.
-
Connect the Acting Customer Service efforts to the current partnerships to soften the road to a greater future integration.
As a major provider of technology and services in telecommunications and financial services industries, we see rapprochement that occurs closely. Explore how banks and communications companies turn the next generation technology into innovations that focus on the future. We followed the coming jobs on the bank’s convergence/communications, which are closely looking at how these sectors accelerate innovation with Genai and through strategic partnerships.
Pablo Cella He is the head of the department and the general manager of the Business Department studio in Amdocs
“A new era of financial service: the convergence of banking and communications services” was originally created and published by Banker Retail InternationalThe brand owned by Globaldata.
Information on this site was included in good faith for public media purposes only. It is not intended to reach the advice that you should depend on, and we do not provide any representation, guarantee or guarantee, whether it is explicit or implicit in relation to accurately or completing it. You must have a professional or specialized advice before taking any action based on the content on our website.
