Press Release (ePRNews.com) - D.C., Wash. - Aug 01, 2017 - Banks have diluted The Sandbox Model, Operators must find New Potential Ways to stay Innovative & Relevant, says ResearchICA in its soon releasing research, Modern Mobile Money 2017 to 2022.
Yes, you read right.
The “Sandbox Model” is not yielding and rather eating time & money including multiple other valuable resources of mobile operators. Fine they are doing partnerships but most of the constructive partnerships, according to the latest research, “Worldwide Mobile Money Modernisation & Monetisation (a.k.a. Modern Mobile Money 2017 to 2022)”, developed by ResearchICA, in collaboration with its partner TeleResearch Labs, are “namesake”. The best solutions out there on display are solid ‘FinTech-Bank combos’ with just 1% involving mobile operators.
“8 out of 10 startups do not want to work with mobile operators. Startups (will) prefer Banks”, According to a latest survey conducted by ResearchICA.
“Among 120 finance technology companies, who are relevant, kicking in their domains, and own a meaningful existence, want —more opportunity, real live experience, strong commitment, trust, & confidence in doing business with whoever they choose.”
By definition, Sandbox model is basically a frontier for capturing innovation at the roots; also responsible for the FinTech sector we know that has come into being.
So an interesting question that arises here is; How could Operators fail, and Banks (& FinTechs) succeed using the same (Sandbox) model?
One, because Banks were not technology pioneers and Sandboxes complement their functioning style.
“Stay out, don’t mingle, let us do our work. . . and you do yours, kind of philosophy”. And this is also true for FinTechs. Unlike Mobile Operators, Banks give them time, space, ears—most importantly, basically all a ‘finance tech enabler’ may seek in order to stay relevant & productive. This also works well in keeping check on aspirations of mobile operators.
Two, a Challenger type model (a.k.a. “parallel model”) will help Banks chaff down 60% of the competition over time, with least direct exposure unto their own. Because money technologies must get mature enough to invite any serious interference from government or the regulators (and that’s where it’ll all actually begin), supports their this predicament in principle. Operators, according to a report by Harvard review, have this record of doing something new every 2 years; “compelled to innovate”. By 2022, it’ll all come down to a lot favouring Banks, especially if operators didn’t soon find new ways of staying relevant. Stamps ResearchICA.
“1:10 Sandboxes believe they will fit better with Operators than Banks.”
5 years ago, Banks got an epiphany; even a small tweaking, better user experience, polishing here and there could easily jeopardise their hold on hoards of customers. They were at the back foot, technology was never their big prowess. They also needed lot of time to catch up with the (then considered) too advanced level of competition. They wished things would slow-up a bit. They aspired Operators distract and get busy with 5G, IOT, AI, TV, something, anything. Banks did not earlier find it compelling to respond but since the rise of m-Pesa and a few more cases, they’re now alert. And focussed. Increasing their footprint like Chinese, second by second.
“If Sandboxes were the only way to go, Mobile Operators will loose.”
This has complicated things and made operators look small in front of the Banks. Somewhat similar to the “App era”, when App providers directly colluded with the handset makers, ISPs, and left Mobile operators in the lurch. Operators could never get back to that side of the business, as we all know. There are no second thoughts should mobile operators decide to remain stuck with the Sandbox model, they will loose. Forget any long lasting partnerships to come out with the present order of things, ResearchICA finds.
This is critical because, “more than 70% mobile operators are expecting to funnel innovation via Sandboxes”. Not surprisingly, they are also not getting it and will not get it, if facts are to be believed. So another couple questions that arise here, are—:
How can operators become a defacto favourite of Innovators?
Should they quit, get more aggressive. . . Or, Can this just be reversed?
What other options (other than Sandboxes) do Operators have that can open the gates of the Babylon for them?
Operators, however still own something very unique which is 247 connectivity, connection with the consumer. Money and its accessibility are directly proportional to each other, and somewhere down the line, this “connection” is going to play a huge and important role in meeting customer expectations.
The (yet to be released) research elaborates on 16-touch points that operators must work upon religiously, if they’re serious about ‘mobile money growth’.
End note — However the Research uses full circle approach and takes under its ambit, Operators, Banks, Tech Giants/ FinTechs, equally, our money & wishes ride with mobile operators: the industry we serve.
http://researchica.com/research/modern-mobile-money-2018 Source :
Business Info : ResearchICA