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From an innovative fintech ’ s perspective , the goal should be to get a Minimum Viable Product , MVP out of the gates as quickly as possible as opposed to chasing the Rolls Royce solution at the outset . This is critical if the fintech wishes to be agile and relevant as opposed to producing one shiny , state-of-theart product a year with no real knowledge of how customers will react to it .
One of the most important ways a fintech can listen to its customers is to gauge how they engage with its products . By using agile methods and principles , and building iteratively , from getting an MVP into testing and then exposed to the market , all the way through phase two and three development , a successful fintech is able to use its tight feedback loops to continually listen to customers .
This way the product ’ s development is influenced by the needs of the customer all through its development , meaning the product is effectively serving needs and not just being pushed into the market . It is a balancing act that each company must manage . p
Telcos and mobile financial service providers at a crossroad
The current situation for telcos is a tricky one – they face a market where traditional revenues are declining , and the market is uncertain . As such , any market that can generate additional revenue streams for operators is vital . Therefore , the mobile financial services market is one of central importance , which can drive new growth for operators .
However , mobile money is a complex market , with many different trends , and it can be difficult to unpack the key factors to watch and for operators to prioritise for growth . To assist in this task , Ericsson and Juniper Research have created a new study , which has surveyed decision makers responsible for mobile financial services at mobile network operators , mobile network operators across 4 key regions .
The survey included 46 respondents from 46 mobile network operators in 35 countries , all from mobile network operators that offer mobile financial services presently .
In order to maximise their future chances , mobile network operators must understand what factors will drive mobile financial services growth , and where to focus their limited resources . Operators stand at a crossroads in many markets , with competition from fintech and banks , as well as social media financial services becoming paramount .
Pavan Ramkishan Bachwal , Acting Chief Commercial Officer Financial Services , Ericsson
Mobile financial service providers must increasingly focus on advanced services like sophisticated micro-finance services , loans , overdrafts , BNPL , investments , merchant payments , bulk payments etc . By doing this , mobile financial services providers can begin to transition their own large user bases to these more advanced services ; driving additional revenue streams , offsetting the potential loss of business to new competitors , and reducing user churn .
The priorities for vendors are clear , enhanced user experience , greater personalisation , offering a comprehensive service portfolio , convenience and ease of use , security and trust and driving growth . As such , these priorities will reshape the way mobile financial services providers operate ; shaking up their revenue models , product portfolios and user experiences . mobile financial services providers must prepare for this disruption now , or they will be left behind by new fintech and technology company competitors .
The mobile financial services market is highly varied , with mobile network operators taking different approaches based on which markets they individually operate within . When looking at which services mobile financial services providers offer , there are a multitude of different ways in which services are provided . As such , respondents were asked which services they presently offer , which they expect to expand in future , and which they do not intend to pursue .
It is clear that a large amount of change is coming to the mobile financial services market . Mobile network operators understand their priorities , and as such , they need to choose technology platforms and vendors that enables them to reach their next phases of growth . If they get this choice right , they will be well set to capitalise on future market opportunities .
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