Ericsson, partnering with Juniper Research, presents the report titled “What Will Drive Mobile Financial Services’ Growth?”, offering deep insights into the dynamics of Mobile Financial Services (MFS) and the transformative opportunities available for Mobile Network Operators (MNOs) worldwide.
The “What Will Drive Mobile Financial Services’ Growth?” report consolidates insights from 46 senior decision-makers from Mobile Network Operators (MNOs) across 35 countries and projects a paradigm shift with an expected 40% user adoption rate and an 80% growth in transaction value over the next five years. This signals a substantial transformation, positioning MFS as a key element in the shift among Telcos to become digital service providers, foreseeing an impressive 45% growth specifically in their MFS revenue.
Key accelerators identified in the report include customer incentives, extensive last-mile networks, and the surge in COVID-19 digital payments. These factors propel MFS success and enable broader financial inclusion and access. However, regulatory challenges, enduring cash preferences, and security concerns pose significant obstacles, demanding strategic navigation from industry stakeholders.
A pivotal aspect highlighted in the report is the evolution of service portfolios towards advanced offerings like micro-finance and investments. This shift not only reshapes revenue models but enhances user experiences, marking a turning point in the industry’s trajectory. MFS providers are strategically pivoting towards these advanced services, fostering innovation and driving economic empowerment across diverse demographics.
Michael Wallis-Brown, Head of Mobile Financial Services at Ericsson, emphasizes, “Mobile Financial Services are transformative for Telcos, positioning them as digital innovators and unlocking invaluable new revenue streams. Integrating MFS enables Telcos to anticipate consumer demands, adapt to market trends, and stay competitive.”
Nick Maynard, VP of Fintech Market Research at Juniper Research commented “What is striking is how massive the changes coming for mobile financial services are. MNOs we surveyed are expecting advanced services to be transformative, both for their service portfolios and for their revenue, and we expect this to have an enormous impact over the next five years”.
Gain in-depth insights into the future of Mobile Financial Services by downloading the full findings of “What Will Drive Mobile Financial Services’ Growth” Report here.
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