Its been quite exciting when we see the effort in order to promote NFC as a financial tool. Till today NFC is still struggling to get in to the lime light and wanted to get address the big challenge. In the industry many big players has done lots of effort in promoting NFC as a financial tools we must appreciate them because they can see the future of payments will also go mobile. The ideal scenario for any financial transaction in NFC consist on
1. Financial institute (a regulated financial institution by the authorities)
2. Mobile operator (Mobile Network Operator)
3. Acquirer (payment acquiring license holder)
4. Agent Network (merchants holding POS and mobiles)
5. Payment scheme (Master/VISA/Amex etc)
Where is the fault?
The debate has begin when the ownership of SIM stays with telecoms operator. Every mobile operator wants to be successful like mpesa and they wanted to be successful as per their wish circle.
Bankers has their own limited circle since both operator and banks don't have such service as their core business the commitment and attention from the top management is not their to make this service successful.
Since the vision is not clear and even them self believe the service will fly and make revenue in next 6 months to 2 years times. Most of the operator focus the service till the time its launched. The remaining work which requires 10x efforts after the technology and regulations go ahead. This includes customer activation, agent network development, obtaining approvals from central bank for new initiatives, compliance, KYC and budget for promotion.
Since the vision is not clear and even them self believe the service will fly and make revenue in next 6 months to 2 years times. Most of the operator focus the service till the time its launched. The remaining work which requires 10x efforts after the technology and regulations go ahead. This includes customer activation, agent network development, obtaining approvals from central bank for new initiatives, compliance, KYC and budget for promotion.
Usually most of the operator failed because they don't let the NFC SIM space available for the banks and other financial operators for micro payments because they know if they let the space to other their work just to issue the SIM card and managing the SIM space like a real estate agency and the financial revenues will be out of their hands. Few operators still believe that they are in competition with all banks and payment institutes and they are the only guys who can go banking out of branches.
This what i came across when I use to work with operators for financial service consultancy. Finding the right business case can leverage to all the stake holder to come on a same page. I can see if the operators management can commit the following they can be champion in financial industry. I can advise all participants to listen each other other regarding their concerns and try to resolve in a better way.1. Hardcore commitment for the top driven management for the service.
2. Open their products for financial institute.
3. Leverage / subside the NFC and other financial service for promotion
4. Increase the PIE with the help of 3rd parties and business partners
5. Adopting inoperable approach.
6. Hiring the right people.
7. Strategic / integration with other products with financial services.
If you are looking or more details. Feel free to contacts and advice.
Kaiser Shahzad
kaiser at onairtech.com
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