Apple and Google gradually “strangle” banks. Such a scenario predicts the former head of Yota Anatoly Smorgon. The only salvation for banks to team up with mobile operators to fight back American companies. On the process, the fight for the wallets of the users and what are her prospects, Smorgon wrote on RBC.
I think I will surprise you, but I have good news.
News first: the banks end. Anyway, the hulking, snobbish and arrogant institutions who dealt with our finances the last hundred years. The retail business of the Bank is to take the money in bulk cheap and sell more expensive at retail. And now that work much better and more elegant handle an IT company.
More than half of U.S. residents, for example, want to use smartphones to pay for small purchases — cheap clothes or coffee. The turnover of contactless payments in Russia is relatively small, but rapidly growing. One of the recent evidence of this — the new rules of the Ministry of communications, regulatory NFC technology for the whole country. Some banks also expect to receive a significant portion of the growing market of mobile payments is to take the same savings Bank and the acquisition by them for these purposes, the mobile payment service Platius in March.
The growing interest in full spur major IT corporations: their system last fall, Apple launched, and this year appeared on the market Google and Samsung. Analysts predict that the expected turnover of contactless payments in the world by 2017 will amount to $48 billion, and by 2020, will increase almost three fold to $130 billion. of Course, on the background of these events, the theme of the imminent demise of banks is the concern of experts and leading business publication.
Google and Apple have millions of devoted customers. And lots of detailed information about users. Google Chrome scans email and search history. Apple sees that as and when you buy on the Internet. Plus, Apple and Google have an online store that gives them access to information about payments. These corporations already have everything to build a risk model and expert scoring. Nothing prevents them to develop the whole range of banking products: provide loans and attract deposits. Not as much as do traditional banks, as well as it needs to be done in the twenty-first century. That is, one touch on your smartphone.
Last summer, the Chairman of the Board of Sberbank German Gref said that the main rival of the organization entrusted to him is becoming Google. And a year ago these statements might seem an exaggeration. Today it is already clear that large shocks are waiting for banks in the near future. In September, Apple launched a payment system Apple Pay in the US. Now the Americans can pay in supermarkets via iPhone, tying in the application any credit card.
Prior to releasing their virtual card, left a half step. You just need to enter into a partnership with Visa and MasterCard, and then to eliminate unnecessary middlemen between money and people — that is, banks. Thus, the technological corporations like Apple and Google, will get the most promising and paying clients. It is obvious that the owners of smartphones are found the extra money. Such people are interesting any Bank.
Together we are stronger
Good news number two: it will make your connection free. Because by classic banks just can’t top trumps Apple. So, their only chance for salvation remains in cooperation with Telecom which I have to say, and he is going through hard times.
In the modern world Telecom has already become a utility service. And for communal people don’t like to pay. In a still rich in Moscow, the average ARPU — 329 rubles. And try to raise rates for three pennies. All these Muscovites with iPhones for a thousand dollars will immediately scream that Telecom their fleeces.
The consumer appetites of the population grow. Smartphones eat up the traffic as black holes. Costs of the operators on the maintenance of the network increases exponentially. Remarkably, makes this holiday digital life anyone, but not the Telecom companies. Basically, by the way, earn it the same geniuses from Apple and Google. So, Telecom and banks — a common enemy. And this is another reason to unite to repulse the enemy.
I’m sure it will give impetus to the era of mergers, the result of which will be new financial telecomasia patterns. In the short term we will see an interesting deal. Only United, banks and operators will be able to bring to market products that will compete with the solutions IT companies.
What benefit is there for the banks? They will get an ally that will help to fight back. After all, between the customer and Apple or Google is a service provider that provides Internet access. No Internet — nothing. And if Google and Apple are acting on some local market (e.g. in Russia) was too aggressive, telcos will always be able to threaten them that pull the switch. They already did it with Google, for example, in France.
Until recently French YouTube has generated such a huge mobile traffic that the four main local operator eventually gathered and forced to buy their traffic wholesale. The argument was simple: in a network we invest, YouTube uses it, and monetization for us. What will happen if you do not stop this evil practice? Operators will cease to invest in the expansion and quality of their networks, and all fell down.
When capital costs are rising due to the fact that someone drives away more and more content, telcos have every right to turn to him and say: “Dear friend, I am building, and monetize you. Somehow wrong. Let’s go”. When operators will partner with banks, they will be able to cool the fervor of Apple and Google in the market of financial services, jointly bringing to market a highly attractive products that it would be difficult to do alone.
As the Union of sword and plough will look like in practice? For example, as a convenient application mobile operator, which will be both your virtual payment account. The client will be able to link multiple cards of different banks to your account and discharge information about all the purchases on the new card virtual Bank. For every purchase made through the app, the client will obtain at its expense a certain amount of virtual money that he can pay for the connection. Five percent cash back. Two hundred roubles — a Cup of coffee. A Cup or two a day — and now the average monthly APRU in your pocket.
“Connect to a joint tariff, get our app, paying for everything from your smartphone and forget about what the relationship needs to pay,” such a proposal may well attract a huge number of people. And the Telecom it will help get rid of curses utility, hiding their profits in the fog of affiliate programs. And all will be fine — and the customers and the operators, and banks.
When can we expect this Paradise of heaven? Soon. Watch the market of mergers and acquisitions.