Most radical innovation in mobile was the impezza product created by
telecoms. They can store up to $800 and give to family and friends.
3 main themes:
Trust - ppl will transact with those they trust
Innovation - will not come from banks
Trickle Up - help come up to speed with first world countries
A lot of innovation in mobile banking come from developing countries.
There is ingenuity due to constraints. Most innovation coming from
Mobile payments is not the same as mobile banking. Mobile payments is
like a mobile wallet. Used for short term and small balances. Mobile
payments are important because of infrastructure. GSM infrastructure
is more robust than other infrastructures.
How does the mobile payment system work? Need agents to provide the
What can ppl do?
Individuals can transfer money. Consumers can pay merchants.
Entrepreneurs can pay labour.
Who are you going to trust in a boom or in a bust?
Who are you going to trust when you are making a transaction?
When there is a bust, fear comes in. We lose our trust in
everything. Everything gets shut down. Banks become government
facilities because of trust.
The economy changes. Trust will be deployed in different ways.
Towns are only going local (transition towns) No more credit, etc.
In developed countries, banks want mobile to be a bank machine. With
that said, why does it have to be a bank like Bank of America and
instead a company I trust.
This is a chance to reinvent the economy.
There are other currencies based on assets.
How can technology open up barrier to money and improve trust? How
can you move your funds from one acct to another?
Some companies are breaking down the barriers: