Priya Patel
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TLDR:
- Ericsson and Juniper Research report highlights the importance of Mobile Financial Services (MFS) for future Mobile Network Operator (MNO) growth.
- The report projects a significant transformation in the MFS industry with an expected 40% user adoption rate and 80% growth in transaction value over the next five years.
Ericsson and Juniper Research have released a report titled “What Will Drive Mobile Financial Services’ Growth?” that sheds light on the critical role of Mobile Financial Services (MFS) for the future growth of Mobile Network Operators (MNOs). The report, based on insights from 46 senior decision-makers from MNOs across 35 countries, predicts a paradigm shift in the industry with a projected 40% user adoption rate and an 80% growth in transaction value over the next five years.
The report identifies key accelerators for MFS success, including customer incentives, extensive last-mile networks, and the surge in COVID-19 digital payments. These factors are expected to drive MFS revenue growth by 45% and enable broader financial inclusion and access. However, challenges such as regulatory hurdles, cash preferences, and security concerns remain obstacles that industry stakeholders need to navigate strategically.
A noteworthy 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 for MNOs but also enhances user experiences, marking a significant turning point in the industry’s trajectory. MFS providers are strategically pivoting towards these advanced services to foster innovation and drive economic empowerment across diverse demographics.
Michael Wallis-Brown, Head of Mobile Financial Services at Ericsson, emphasizes the transformative nature of MFS for Telcos, positioning them as digital innovators and unlocking new revenue streams. Nick Maynard, VP of Fintech Market Research at Juniper Research, anticipates massive changes in the MFS landscape over the next five years, with advanced services expected to be transformative for service portfolios and revenue generation.
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