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If a customer connects to an open Wi-Fi network, fails to follow adequate Bluetooth communications protocol or uses shoddy passwords on smartphones, a bank's internal networks may be exposed to fraud.
February 28 -
More than two billion people worldwide do not have a bank account, but do have a mobile phone, making the device a direct conduit to an underserved demographic.
January 10 -
The universal consumer demand for bill payment makes the service particularly well-suited to bringing people into the financial mainstream.
October 5
When it comes to strengthening our financial security, Americans' relative wealth means more access to banking and the kinds of innovative technologies that put financial management and security at our fingertips. In the U.S. and much of Europe, smartphone use is becoming ubiquitous, and virtually every major bank offers app-based banking services.
Even in the U. S., however, access to basic banking services isn't as widespread as it may seem. One in 12 American households lacks any kind of deposit account, according to a
A wide range of companies from established banking giants to innovative startups are developing mobile payment technologies that will revolutionize the way we manage and spend money. For example, MasterCard's Mobile Money Partnership Program is a partnership with mobile services providers Comviva, Sybase 365 and Utiba to enable unbanked and underbanked consumers to purchase goods and services via their mobile phones as well as transfer funds and pay bills. These innovations create opportunities to break down the barriers of time, distance and cost associated with delivering financial services to the poor.
Using these advancements to increase access for the poor is challenging, but the inroads are there. Mobile phone use in the developing world is on the rise, with
There is a temptation among businesses to write off the low-income market as an unlikely source of revenue. But the four billion people at the "base of the economic pyramid" – people who earn less than $3,000 a year –
The
The mobile banking industry is ready for leadership on the issue, and indeed some of the biggest players in the industry are already working on the mobile wallet solutions that don't require users to have pre-existing banking services. Visa, for example, is working to provide prepaid accounts that are
Mobile payments offer unrealized potential for both the banked and underbanked world. But it offers a compelling business proposition too. The U.S. electronic payments industry can and will lead the global effort to provide solutions for the financial-services poverty epidemic. We must do more, but together we're moving in the right direction.
Jason Oxman is the chief executive officer of the