Global mobile statistics 2012 Section G: Mobile financial services (MFS) and m-banking; Section H: Venture capital (VC) investme

June 2012: The essential compendium of need-to-know statistics. Beware of media hype and mobile myth – put your mobile strategy on a sound footing with the latest research and stats from credible independent experts. Users of MFS, mobile banking, mobile wallets, money transfers/remittance, banking the unbanked in Asia, Africa, Europe and North America; mobile companies attracting most VC investment, most active VCs in sector.



FINDING YOUR WAY AROUND THE MOBILE STATS COMPENDIUM:

Home: Full index of contents and highlights • Section A: Mobile subscribers; handset share • Section B: Mobile Web; 3G • Section C: Mobile marketing, advertising and messaging • Section D: Consumer mobile behavior • Section E: Mobile apps, app stores • Section F: Mobile payment, NFC, m-commerce, m-ticketing and m-coupons • Section G: Mobile financial services (MFS) and m-banking • Section H: VC investment in mobile.


Section G: Mobile financial services (MFS) and m-banking

1) Users of MFS (m-banking, m-wallets, remittance etc)
2) MFS, money transfers and banking the unbanked in Asia and Africa
3) Mobile banking (m-banking) in the West
4) Money transfers outpacing m-banking

Section H: Venture capital (VC) investment in mobile

1) Mobile companies attracting most VC investment
2) Most active VCs in mobile sector


1) Users of Mobile financial services (MFS)

MFS (m-banking, m-wallets, remittance/transfers etc) users are growing fast:
Yankee Group (June 2011) predicts that there will be 500 million m-banking users globally by 2015.
• Currently, 27 percent of all survey respondents use mobile banking--far more than use m-commerce (13 percent), mobile coupons (11 percent) and mobile payments (9 percent).
Berg Insight (April 2010) estimates that users of m-banking and related services (including money transfers) doubled between 2008 and 2009 to 55 million and will double again in 2010. In 2015 there will be 894 million users globally. Growth is being driven by efforts by operators and banks in developing countries (particularly in Asia) to bank the unbanked.
Global Industry Analysts (GIA) (February 2010) predicts the global customer base for m-banking will reach 1.1 billion by the year 2015.
ABI Research (January 2009) forecasts that in 2013, there will be nearly half a billion customers of MFS, including m-banking, mobile domestic person-to-person payments (i.e. money transfers) and international person-to-person payments.

2) MFS, money transfers and banking the unbanked in Asia and Africa

Asia will be the key market for MFS, driven by initiatives to bank the unbanked and money transfers:
Berg Insight: More than half of global MFS customers will be in Asia Pacific – Middle East and Africa is also expected to be important market – as mobile operators drive initiatives to bank the unbanked.
GIA: Asia-Pacific will emerge as the predominant MFS market in terms of customer base. In Middle East and Africa, the need to provide financial services to remote areas will be central to the growth of m-banking.

Further reading::
The insider's guide to banking the unbanked.

3) Kenya is the world leader in mobile money services

• Of the 29 million mobile subscribers in Kenya, 65 percent (19 million users) are subscribed to mobile money services. Communications Commission of Kenya (CCK), July 2012)
• The crux to mobile money services is to transfer money from one handset to another and deposit and withdraw via a network of local agents. But mobile money can be used in many other innovative ways in Kenya including paying utility bills or school fees, making in-store purchases, m-ticketing, phone top-ups, withdrawing cash from ATMs, sending money home from 45 countries overseas, people even have their wages and stock dividends paid into their account. All of this is achieved without needing a bank account, bank card, a smartphone or a post-paid contract.
• Safaricom’s M-PESA service was the pioneer of mobile money in Kenya - and worldwide. Starting only five years ago, M-PESA now has an amazing 15 million subscribers, which would give it 78 percent of total mobile money subscribers in Kenya. All other Kenyan operators and some banks also offer mobile money services.
• Safaricom makes more money from M-PESA than from SMS and data put together.

Mobile money subscribers in Kenya March 2012
  March 2012 Annual growth
Total mobile subscribers 29.21 million 15.8%
Mobile money subscribers 18.99 million 9.1%
Number of Agents 45,861 13.5%
Total Deposits (KES) 185.36 billion 42.4%
Total Deposits (US$) 2.19 million 42.4%
Source: CCK, July 2012 via: mobiThinking

Further reading::
• The insider’s guide to mobile Web and marketing in Kenya 2012.

4) Mobile banking (m-banking) in the West

In developed nations m-banking will be driven by banks:
GIA: In North America and Europe, m-banking is extension of online banking, as banks respond to growth of mobile Web. But in Europe, m-banking is in early stages, driven by convenience and value-add rather than revenue generation.
Berg Insight: Evolving from traditional/online banking; m-banking will attract 115 million users in Europe and 86 million users in North America, by 2015.
ABI: Banking institutions will be the major promoters of MFS, as it helps to increase customer ‘stickiness,’ help banks cut costs and automate, and most importantly, to reach the unbanked.
• ABI: In the US, Bank of America is a leader of m-banking. Launched in May 2007 it now has 1.5 million subscribers.

5) Money transfers outpacing m-banking

Remittance/transfers by mobile is growing much faster than m-banking (driven by developing nations)
ABI Research (July 2009) predicts that 170 million mobile subscribers worldwide will make domestic person-to-person payments (i.e. transfers) in 2011 – that's three times as many as those that will conduct traditional banking functions by mobile. This is driven by the enthusiasm for such services in developing world often from previously ‘unbanked’ people.
Berg Insight predicts international money transfers will increasingly be done by mobile. By 2015 3–15 percent of transfers handled by agent networks today will be carried out by mobile handset (worth US$1.2–6.2 billion in revenues to the mobile industry).



“In the last twelve months, customers around the world have ordered more than US$1 billion of products from Amazon using a mobile device," – Jeff Bezos, founder and CEO of Amazon.com (July 2010).
• See Section F: for all the stats on mobile payment, NFC, m-commerce, m-ticketing and m-coupons.


Part H: Venture capital investment in mobile

Venture capitalists are investing more and more of their funds in mobile companies:
• Research by Rutburg & Co (Jan 2012) finds that VCs spent US $6.3 billion or 42.4 percent of their budgets on mobile investments in 2011 (up from $4.5 billion or 30.4 percent in 2010).
• VC investments in mobile marketing and advertising companies was $592 million in 2011 (up from $128 million).
• VC investments in mobile commerce and payments was $558 million in 2011 (up from $276 million).
• VC investments in mobile health was $356 million in 2011 (up from $209 million).

Top five VC financings in mobile in 2011 according to Rutburg & Co
Company Location Type of company Amount
LightSquared USA wholesale mobile broadband provider $265 million
InMobi USA mobile advertising network $200 million
Plastic Logic UK mobile display technology for e-readers $200 million
Jawbone USA mobile consumer accessories $159 million
Eaton Towers UK mobile telecom towers for Africa $150 million
Top five most active VC investors in mobile companies in 2011
VC Firm Number of investments Mobile companies invested in by VCs
Sequoia Capital 24 Bubble Motion, Bump, Clickatell, Color, Cotendo, DailyBooth, Evernote, Flite, Inkling (2), Just Dial, MeLLmo, Meraki, MobileIron, MoboTap, Onavo, Quantenna, Sencha, Sourcebits, Square, Stoke, Synapsense, Trippy, Unity
Intel Capital 23 4tiitoo, AltoBridge, Animoca, Arcsoft, Borqs, CloudMade, Digital Chocolate, GainSpan, InVisage, ip.access, July, Kno, mFoundry, Mocana, NeuString, SecureKey, SkyCross, skyrockit, Sotera, Swrve, TOA, Total Immersion, Urban Airship
SV Angel 21 AppRedeem, BankSimple, Bump, Drchrono, EggCartel, Everyme, Game Closure, Hyperink, just.me, Kno, Mindless, Dribble, Onswipe, Orchestra, Parse, Poshmark, ShowMe, Sincerely, SnapGuide, Swrve, Tagstand, Trippy
Google Ventures 19 Airy Labs, Astrid, Crittercism, Echoecho, Enterproid, just.me, Milk, Miso, Nettle, Ordr.in, Parse, Pocket Change, Read It Later, Rumble, Scvngr, Stickery, Subtext, ThinkNear, TweetNGo
Kleiner Perkins 19 Aerohive, Apperian, Awarepoint, Cooliris, Crittercism, Fixmo, Flipboard, GOGII, iControl, INRIX, Jawbone, Kovio, Path, Session M, Shazam, Square, Stoke, Waze, WorkSmart
Source: Rutburg & Co (January 2012) via: mobiThinking


FINDING YOUR WAY AROUND THE MOBILE STATS COMPENDIUM:

Home: Full index of contents and highlights • Section A: Mobile subscribers; handset share • Section B: Mobile Web; 3G • Section C: Mobile marketing, advertising and messaging • Section D: Consumer mobile behavior • Section E: Mobile apps, app stores • Section F: Mobile payment, NFC, m-commerce, m-ticketing and m-coupons • Section G: Mobile financial services (MFS) and m-banking • Section H: VC investment in mobile.



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