Welcome!

News Feed Item

ICT in Financial Services: Frost & Sullivan's Four Big Predictions for 2013

Mobile devices serve as a key customer interaction channel and contactless payments will sharply increase

LONDON, Dec. 17, 2012 /PRNewswire/ -- Mobile devices have become a vital interaction channel in the financial services sector. Europe witnesses a high uptake of m-banking services, an emerging adoption of m-payments, as well as long-term growth opportunities in international m-remittances. Frost & Sullivan predicts that four topics will dominate the financial services market in 2013: contactless payments, commercial mobile payment offerings, cloud-based solutions and data analytics.

"The European population is moving towards prepaid, online and contactless payments for small amounts," notes Global Program Director for ICT in Financial Services, Jean-Noel Georges. "According to Frost & Sullivan, contactless cards growth in Europe will reach a Compound Annual Growth Rate (CAGR) in 2011-2017 of 28.7 per cent. By 2018, 38 per cent of mobile phones shipped in Europe will be Near Field Communication (NFC) enabled, increasing the use of NFC solutions." Using contactless payment will be simpler and effortless. Like the touch screens on smartphones, contactless payment will follow natural customer behaviour and will generate a new payment experience.

Numerous commercial mobile payment offerings will be launched in 2013, and by 2014-2015, greater uptake will follow. The value of transactions made via mobile payment using NFC technology will reach 42.3 per cent in 2015 and 49.6 per cent in 2018. Frost & Sullivan believes that the commitment of market participants to work together signifies a positive signal for the NFC development.

With the massive adoption of smartphones in Europe, SMS and USSD will become less and less relevant. Among the countries covered in the recent Frost & Sullivan study "Mobile Financial Services—A Technology and Market Analysis", smartphone penetration averaged 28.0 per cent in 2011 (from 9.0 per cent in Russia to 46.0 per cent in the U.K.).

The annual number of online sales (in France, Sweden, Poland, Germany, and the U.K.) by use of a smartphone will be around €171 in 2012 (average annual expense per user per mobile). In Russia, growing Internet penetration will be an important driver, reaching a CAGR (2011 to 2018) of 6.4 per cent. Online sales will have a CAGR (2011 to 2018) of 10.6 per cent.

Cloud computing will remain a cost-efficiency driver as these solutions are expanding faster than NFC-based solutions in the m-payments space. Amidst the economic crisis in Europe, many companies are looking to reduce or minimise their investment or functional cost. As cloud uses internet and server storage for payment purposes, associated business models will allow small and medium enterprises to better reach their expenditure objectives.

Social media and data analytics will gain stronger importance in the CIOs agenda.  More and more banks and financial institutions will focus on using social media and data analytics for processes to understand their customers better (Know Your Customer, KYC) and, therefore, to target them with specific product/services and pricing offers. The reduction of the total cost for data computing provides an exceptional capability to identify new customer groups, gain greater visibility into their purchasing patterns; and, thus define customised offers and services perfectly in line with their expectations.

"In 2012 regulatory pressures forced financial institutions to rethink their strategies," summarises Jean-Noel Georges. "Market participants have to increase efforts to ensure interoperability and open environments. But 2013 will be an exciting and promising year for technology and innovation. Probably for the first time in the payment industry, all stakeholders are ready to promote new products and to start new services. So the race has already started," he adds.

If you would like to learn more about Frost & Sullivan's ICT in Financial Services – Predictions for 2013, please contact Joanna Lewandowska, Corporate Communications, at [email protected]. Please include your full contact details in the query.

The presentation on ICT Europe – Financial Services Predictions for 2013 is also available on Slide Share.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

Contact:
Joanna Lewandowska
Corporate Communications – Europe
P: +48 22 481 62 20
E: [email protected]

http://www.frost.com
www.twitter.com/frost_sullivan
www.facebook.com/FrostandSullivan

SOURCE Frost & Sullivan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.