Anywhere Banking: Technology and Attitudes Surrounding Mobile Banking in Latin America

As Latin America’s mobile market grows to dwarf other telecom services in the region, new business opportunities for mobile-based services such as mobile banking will arise.

Latin America shows strong potential for mobile banking as the region has a significant portion of unbanked users (i.e., people who do not have a bank account). The service could be a cheap and effective way to attract these largely prepaid mobile customers to use banking services. Exhibit 1 shows that, on average, Latin America has only a 31% banking account penetration among the adult population—with only Chile, Brazil and Colombia exceeding the average. However, Latin America’s average penetration of unique mobile phone users is 57.5%, thus representing a significant opportunity to attract unbanked mobile phone users.

Currently, three different business models support mobile banking initiatives in the region. In this Yankee Group Report, we compare these models to leading global initiatives to determine where the greatest opportunities are and which model will address them best. We also explore consumer expectations and propose an adoption model that takes into account the factors that will guide consumer uptake of mobile banking services.

I. Introduction

II. Mobile Banking

Methodology

Business Models

Cultural Analysis

Remittances: Not a Full Banking Offer, but Huge Potential

Consumer Adoption Model

Technology and Process Adoption

Forecast

III. Conclusions and Recommendations

Recommendations for Banks

Recommendations for Mobile Operators

IV. Further Reading