Business Strategy: Transforming Banking with Mobility in Financial Services

This IDC Financial Insights report examines the concept of mobility within the context of MEA financial services. An overview of the current landscape is briefly considered, followed by an outline of IT spending trends in the region. This document provides a view of mobile device trends in MEA, some of the key features software vendors currently offer, and a summary of key considerations financial institutions will need to address in developing their respective mobile strategies. Mobility initiatives in financial institutions across the region are gaining in popularity, and this is demonstrated with a few notable examples from across MEA.

In line with the global trend that IDC Financial Insights has identified, focus on mobility has clearly increased in the Middle East and Africa (MEA). The mobile banking channel can no longer be viewed as an alternative channel. As the end users become more technologically savvy, their need for services at anytime and anywhere is increasing.

"Mobile subscribers in MEA total 800 million, representing a mobile penetration rate for the region of 80.4%. By contrast, IDC Financial Insights estimates the penetration rate of banking services in MEA at less than 35%. Increased device capacity and faster Internet speeds have boosted the adoption of mobility among consumers, adding to the recent success of mobile banking initiatives. Most financial institutions across MEA have adopted some form of mobile technology, which will be pivotal in capturing a large share of the unbanked market and adding to the banking experience for existing customers. Regulation in the MEA mobile banking market is yet to reach an advanced state of maturity, which should be viewed as an opportunity to create sound security policies and develop trust in mobile banking technology." — Senior Research Analyst Bijen Ramdas, IDC Financial Insights Middle East, Turkey, and Africa