E-Finance in the Mobile World

IntroductionWhat is e-finance? The provision of financial services and markets using electronic communication and computation. The developments can be divided into two broad areas. The first is the impact on banking and financial services. They argue that the advent of the internet and other electronic communication means has fundamentally altered many aspects of the banking industry. Many of the services traditionally provided by banks are being provided by other entities.The financial services industry is undergoing dramatic changes caused by recent significant technological advances and the explosion of services offered on the Internet. The revolution underway can significantly accelerate financial sector development in many countries by reducing costs to consumers of financial services, increasing breadth and quality, and widening access to financial and non-financial services. Globalization, economic integration within and across countries, deregulation, technological advances in Telecommunications especially in cable and wireless communication technologies, and the spread of the Internet are dramatically changing the structure and nature of financial services provision and financial services industries around the world. Internet and other technologies are not just alternative distribution channels, but are fundamentally changing the business model. The Internet is about reach, richness and relationships. It allows people and businesses to communicate one to one or many to many, provides access to vast amounts of information gives access to global markets, and provides transaction support (B2B, B2C, and C2C). Financial institutions can have a much richer exchange with their customers and can create and tailor products and services that meet the evolving needs of their customers. At the same time, the Internet poses a threat: it allows new financial service providers to more effectively compete for customers because it does not distinguish between traditional bricks and mortars institutions and those without physical presence. Increasingly, consumers and businesses are comfortable with alternative payment mechanisms provided through the Internet. These forces are leading to large benefits for consumers of financial services at both the retail and commercial level. The advances in technology are resulting in fundamental changes in the basic structure of the financial services industry on a global basis. Technological advances are leading to the entry of new types of financial services providers within countries and across borders, including online banks, brokerages, mono-liners and so called aggregators (which allow consumers and businesses to compare financial services, e.g., loans, saving rates, insurance policies etc). In addition, there is a proliferation of new types of non-financial entities that are offering a whole range of financial services, many of them directly competing with banks and the formal financial intermediaries. Many of these companies are dedicated to the provision of one kind of service, while others are adding financial services to their traditional line of business. The latter include utilities and telecommunications companies that offer various forms of 2 payment or other services via use of their existing distribution network and customer relationships.Vertically integrated financial service organizations that try to create synergies by combining brand names, distribution networks and financial service production are rapidly growing.E-Finance in Global market placeFinancial institutions have traditionally relied on notions of trust and loyalty to keep their customer base. A number of e-finance initiates have been aimed mainly at the provision of online services to existing customers in an attempt to keep them loyal. However the convenience of online services can lure customers away from their banks, building societies and insurance companies. There are three ways that e-finance initiatives seem to have emerged. …