Some Background – Game trap
This post is on game trap of money focused on my own assumptions and experience. Understanding driven purely from the prospective of my ability to correlate the offerings and reasoning on the offerings by various governments of different countries.
Governments of lost or dying economies offering residentship, passports and nationality by showing gloomy pictures. These offerings are made against capacity to make huge and significant investments in the country.
Rather then fooling foreigners is there a possibility to support & recover economical graves. May be by adding flavors of mobile payments, low-cost cross border remittances, electronic payments and giving freedom from cash and real currency.
It’s important to study the facts of game i.e. offerings, but if you’re presented with a real opportunity, don’t risk losing it. But taking time required to complete due diligence is needed before any such big commitment.
Now whats next
Back to our main topic why we get such tasteless dreams wrapped in colourful & glittery wrappers. This article identifies few countries in the most dire straits and the problems they face. When it comes to dream sellers they are in top seller list (Cant say how many buyers are there).
Why most of the countries, which are in serious trouble or on the path to fall in financial pit are the only or mostly in the list of dream sellers for best life, excellent life and luxurious life. In recent time (even this is still on) media is doing more than adequate job of covering the futile dance between the Eurozone “leaders” and Greece. But Greece is not the only country facing fundamental economic challenges. Southern slice of Europe- France, Spain, Portugal, Italy and Greece, should unilaterally reschedule their sovereign debt obligations.
To offer their economies room to breathe, and plow much more funding into promoting economic growth; instead of salvaging their economies with “austerity” policies which kill economic growth. Austerity has never produced anything but austerity. It is the enemy of the kind of growth these countries need to get their sovereign debt in hand.
Is there a direct relation in 2 things i.e offering excellent life in an easy way or by just putting few million dollars into country of destination and locking for 3-5 years without any interest gain and on other hand same country is under huge debts from foreign investors who are looking for their money. Now in main story we will see how we can blend Mobile Payments, Cross Border remittances (Another form of Mobile Payments & Receivables).
Nobody has forgotten the name of Laiki. Laiki was a failed bank at the heart of the financial woes of the EU’s most easterly island. Yet things have changed more radically behind the scenes in banking and political circles. For a start, Laiki’s business was transferred to the larger Bank of Cyprus, which is getting to grips with its daunting financial legacy.
If they had easy access to Mobile Payments and financial services locally available in the country in closed loop and strong presence and motivation for local industries to produce goods to be consumed internally, scene would have been different. Remittance services on Mobile Wallet interface would have given great shape and strong background to its economy.
There are many countries whose GDP is supported by cross border remittances. For some countries more than 40% of total income in country comes through remittances. Every year, migrants send hundreds of billions of dollars worth of remittances back to friends and family in their home country. There’s a massive industry that facilitates these payments — and has for more than a century.
With huge portfolios of payment instruments info-security is getting tighten as well. Machine learning & deep learning are playing key role here. Cyber security extension to finger printing, facial recognition getting under trial for use. Finger printing solution along with 2 way authentication to use online bank accounts are now possible. Authorising payments within seconds without the need for PINs, passwords or authentication codes etc.
Mobile Financial Services – An Angle
MFS Operators to make sure customer protection by operating in accordance with the regulations by the central banks. Guidelines and principles of transparency, responsible pricing and fair treatment of subscribers; within complaint environment.
Mobile money not only extend financial services to the poor; but also is improve productivity by increasing efficiencies, lowering the cost of transactions. Also take care of Info-security, generates new employment opportunities and creating platforms on which other businesses could grow. Adding AI technologies like machine learning & data science into mobile money could improve its ability to check financial flows and reduce illicit activities. Salary payments via mobile money could also be an enormous driver of the service throughout the economy.
Regulators support through policy direction much promote the growth of mobile wallet transactions. Also it provides freedom from cash i.e cashless payments. Development of applications that could make the use of the mobile money platform easier, efficient and effective have huge potentials.
Mobile Payments – Mobile Commerce
The sheer volume of users embracing mPayment has exponentially grown over the past few years. It will still take some time to be a norm though. Now Samsung Pay is coming as announced at a Samsung event in New York where. In the event company unveiled its newest flagship devices – the Galaxy S6 edge+ and Galaxy Note5. JK Shin, CEO and Head of IT said “With the launch of new smartphones, we will open a new era of mobile payment. This is Samsung’s brave step forward to enhance our mobile experience.
It is easy, safe, and most importantly, available almost anywhere. Pay solution on mobile device can be used, usually without new costs for merchants. For online payments from banking domain, which is simple, innovative, and cost-effective; solution has to help to improve the security of online banking transactions. Protect online banking solutions against malicious attacks, offer an identity management feature and Enhance user experience.
The good news is that mobile payment players are constantly looking to boost security. Google was one of the first to offer HCE (Host Card Emulation). HCE allow mobile app to do card emulation on the NFC Till without having to rely on secure elements. Others like VISA and MasterCard are following suit.
Security for Mobile Payments
HCE data (card details) is stored in the cloud instead of the user’s device. It poses another challenge due to the fact that cloud isn’t entirely secure either. This is where other techniques like tokenization come into play. Token substitutes sensitive data with a token or a proxy. This method does not makes any sense to anyone, except for the authorised interface which requested the token.
For more details on cloud based solution Cloud Based Mobile Financial Services
The evolution of financial payment systems has been a long but interesting journey characterised by sudden changes in underlying technology. Payments and banking started to the best in class of its time. Sadly not much change has ever happened to this and this led to inefficiency and obsolete technologies. The traditional way which was slow but still acceptable to the customers due to the stage in the information age.
In old days 100% percent of activities in the financial services space was attributable to banks only. With advancement in technology, organisations outside the banking industry diversified into financial services targeting margins in the space. These were organisations servicing millions of customers through broad distribution channels, be they mobile operators, retailers or on-line merchants.
Legacy of International Remittances
The legacy remittance industry still dominated by cash, which requires physical locations to drop or pick up remittance money. Building out those retail networks is a huge investment. It’s left just a few players, called Money Transfer Agents, controlling a bulk of the industry. But these companies’ comfortable hold on the industry is now being challenged by digital remittance startups & Mobile based cross border remittances.
Mobile Network Operators & Digital-first remittance companies are competing on fees, 24 hour access from any where to any where, other value added services like making mobile payments and bill payments other than just cash out (Step towards cash free world) and usability, and capitalising on the way people’s expectations have changed with the advent of digital and mobile channels.
Savings were simply scalped and went to help fund the closure of bank’s liabilities. The so-called “haircut” imposes comes along the way that helps in worsening the problem in negative way. Solution that is hastily designed to fall with large sums in offshore accounts can be avoided very well with MFS.
Mobile Payments & Future
Mobile money & mobile payments expected to explode beyond 3 trillion euros by 2020. It will save $2 billion for some African countries as well. Mobile money has evolved much farther than its basic definition i.e is just cash in and cash out. Agents & subscribers of mobile money these day much more than P2P money transfer. Africa have given new dimension and killing speed to international remittance on mobile. The speed almost of eye blink. Receiving money from anywhere straight into mobile wallet within seconds around 24X7 is now possible. Utility bill payments, merchant payments, loans, insurance are few more examples.
Banks should take a back seat as clerk for reconciliations and accounting units and regulator should allow MFS companies to run real game trap of money i.e. innovate, bring new solutions and products in no time and make customers life easy, less costly and much faster, see my post Why Banks struggling for Mobile Payment Services
Disclaimer – All credits if any remains on the original contributor only.
Books + Other readings Referred
- Open Internet – News Portals, Economic development report papers of world bank
- Personal experience of @AILabPage members
Hash Tagas : #payments, #mobilepayments, #mobilemoney, #money, #mobile, #FinancialCrises, #TransformLives, #WeTransformLives
Conclusions: With due respect, running on an unknown path without a roadmap or direction is running like a headless chicken often result in disasters. I have seen and taken part in programs to build my experience or hands on mastery in such situations where Mobile Payments or Mobile Wallet based cross border remittances support country economies and proven in 100% confidence level that when it came to the crunch, many countries including Greece, Cyprus & Italy had no choice but to accept rescue terms that affected not only bank bondholders and shareholders – but thousands of private deposit holders.
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