Finance News & Insights

The technology 84% of banks will have soon … will yours?

Your bank is hungry to keep your business (and maybe even get a little more of it). Most financial institutions think this may just be the way to do it.

Don’t be surprised if you feel an increased push for mobile payments in the not-too-distant future. Here’s why:

84% of banking and financial services executives say mobile payments will have significant importance to their business within the next one to four years. That’s according to a new report by KMPG, entitled Monetizing Mobile: How Banks Are Preserving Their Place in the Payment Value Chain.

It’s no passing fad. Three-quarters of banks feel mobile banking (including on the corporate front) will be a mainstream practice in the next four years.

Whether the thought has you jumping for joy or cringing, here’s how you can turn banks’ latest revenue generating plans to your own benefit.

Understand their game plan

The KPMG report offers you some insights into banks’ strategy to sell clients on more mobile payments.

When it comes to their business customers, banks see mobile payments as a way to differentiate themselves from the competition.  The specific way they’ll do it? By bundling enhanced corporate services, such as cash management tools and/or back-office functionality.

One of the biggest plusses is that you’d be able to review and approve payments on your iPhone, BlackBerry, etc.

Of course, most financial institutions aren’t ready to roll this technology out just yet. The biggest hurdle: security. Naturally, that has to be a top concern for your own company, as well. After all, that’s sensitive information to control on something as easily misplaced or stolen as a smartphone.

Still the speed and efficiency of mobile payments can’t be denied.  So you want to keep an open mind. That’s why when your bank does approach you with this technology,  be sure to press them hard on just how they’ll keep these payments safe.

In the meantime, it couldn’t hurt to start thinking about a list of suppliers you’d be willing to try it out with when the technology is available. Think about talking with your Accounts Payable people to see which vendors they think would be most receptive to a change in doing things.

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