Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance

Transcription

1 Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance Report prospectus March

2 Prospectus contents Page What is the research? What is the rationale? What methodology has been used? Which mobile operator groups are covered within the strategic analysis? How do mobile operator brands covered break down by region and group? What is the report structure? What are the key features of the research? How can the research be used? How can the interactive PartnerBASE be used? Who can use the research? What are some of the key findings? What is the cost and format? How can the research be purchased? Definitions of mobile payment products and services covered

3 What is the research? Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance is a report and interactive PartnerBASE dataset that provides a detailed worldwide overview of the fastgrowing involvement of mobile operator brands and groups in financial services. For 286 brands spread across 92 countries, it outlines their activity and strategic partnerships for over 20 financial product and service categories as follows: payments: payments via linked bank card / account, payments via direct carrier billing, payments via network account, talktime / credit transfer; international payments and remittances; banking: mobile banking (bank current accounts), credit cards (non-virtual), prepaid cards (nonvirtual), personal loans / micro-credits; insurance: mobile phone, mobile gadget, bill payment protection, identity protection, motor, household, travel, accident, health, life; assistance: home, legal, medical, road. Across all 286 brands researched, Finaccord identified a total of over 1,250 distinct product initiatives involving over 500 payment companies, banking institutions, insurance providers, assistance entities and technology firms. Moreover, within a separate analysis, Finaccord summarises the main strategic moves made in financial services by the leading 60 mobile telecoms groups worldwide. 3

4 What is the rationale? There are a number of reasons for producing this report. First and foremost, and while the precise magnitude of the opportunity varies by country, the number of customers of mobile operator brands typically runs into millions or tens of millions which makes them potentially attractive as affinity partners from the point of view of both financial institutions and financial technology companies; in any given country, few other organisations possess as many on-going customers as the leading mobile operators. Moreover, with growth from established revenue streams tending to slow, as the penetration of mobile subscriptions reaches maturity, mobile operators are looking to new fields of activity, such as financial services, to generate fresh sources of income. Indeed, rapid advances in payment and other financial technologies signify that mobile operators are well-positioned to benefit from growth in mobile payments and banking. In addition, the continuous relationship of mobile operators with their customers and the fact that their brands often command a relatively high degree of trust means that there is also potential for them to act as intermediaries for insurance and assistance products. Not only do these include forms of insurance that are linked naturally to their core service, such as bill payment, mobile gadget and mobile phone insurance, but also mainstream types of life and non-life cover. 4

5 What methodology has been used? In order to gather the data and insights contained in this report, Finaccord employed two main research methodologies as follows: direct contact with the main international offices of the 60 mobile operator groups in the strategic analysis, typically with press or investor relations departments, to ask them about their current and future strategies in financial services; direct contact with the national offices and retail networks of the 286 mobile operator brands in question, to audit the exact financial products and services offered and the financial and / or technology partners with which these have been developed, where not managed internally. The first wave of research represents the main input into the chapter providing a strategic analysis of the involvement in financial services of the world s 60 leading mobile operator groups while the second underpins the chapter analysing the activity of the 286 brands on a product-by-product basis. The 60 mobile operator groups covered are shown overleaf with a summary of the breakdown of the 286 mobile operator brands covered by region and group illustrated on the following page. 5

6 Which mobile operator groups are covered within the strategic analysis? Aircel China Mobile LIME Rogers Communications Telenor Airtel China Telecom Maxis SingTel TeliaSonera AIS China Unicom MegaFon SK Telecom Telkomsel Algérie Télécom Chunghwa Telecom Mobily Smart Communications Telstra América Móvil Deutsche Telekom MTN Group SoftBank TIM AT&T Mobillity Etisalat MTS Sprint Nextel True Move au Glo NTT STC Turkcell Avea Hutchison Whampoa Oi Tata DOCOMO Verizon Wireless Axiata Group Berhad IAM Ooredoo Tele2 Viettel Mobile Bakrie Telecom Idea Cellular Orange Telecom Argentina VimpelCom Bouygues Télécom KPN Plus Telefónica Vinaphone BSNL KT Reliance Communications Telekom Austria Vodafone Note a full list of the 255 mobile operator brands can be seen in the table of contents for this report which can also be downloaded from Finaccord s website. 6

7 How do mobile operator brands covered break down by region and group? Latin America, 48 Asia Pacific, 125 North America, 11 E&S-E Europe, 36 N&C Europe, 35 S&W Europe, 29 Africa & Middle East, 62 Group Number of mobile brand subsidiaries or affiliates included in the research Vodafone 23 Telefonica 15 Orange 12 America Movil 12 TeliaSonera 12 Deutsche Telekom 9 Telenor 9 Millicom 9 Hutchison Whampoa 8 Ooredoo 6 Telekom Austria 6 Etisalat 5 Bharti Airtel 5 VimpelCom 5 Source: Finaccord Global Mobile Operator PartnerBASE Note - close to 400 groups with a controlling or significant equity stake in one or more of the 286 mobile brands are covered in total. 7

8 What is the report structure? 0. Executive Summary: providing a concise evaluation of the principal findings of the report. 1. Introduction: offering rationale, description of methodology, definitions and other related notes. 2. Group Strategy Analysis: comprising a summary of the strategies in payments, banking, insurance and assistance of the world s leading 60 mobile telecoms groups. This section highlights the main strategic moves made by these groups in each of mobile payments, mobile banking and insurance / assistance; in doing so, it covers significant joint ventures created by these groups (e.g. au Insurance, Jibun Bank, mpass, WyWallet) and identifies external financial, payment and technology organisations that are engaging with these groups at a strategic level (e.g. Asurion, Gemalto, Monitise, Wirecard). 3. Brand Analysis: analyses and commentary regarding the provision of the various payment, banking, insurance and assistance products covered by the 286 mobile operator brands researched. This includes both the unweighted and weighted provision rates for each product; any regional variations in the provision rates for each product; where relevant, the degree to which mobile payment products were found to use contactless technology and / or require a smartphone app; and the weighted competitor shares of partnerships for each product, quantifying which providers (and, where relevant, payment networks) are playing a leading role in these areas. 8

9 What are the key features of the research? Key features of this research include: an overview of strategic initiatives in mobile financial services that are being driven by telecoms companies at a centralised group level as opposed to the national level; coverage of over 20 distinct financial product and service categories including payments via direct carrier billing, payments via network account, co-branded credit and prepaid cards, mobile phone and gadget insurance, and various forms of assistance (e.g. home, legal, medical, road? assessment of the degree to which 286 mobile operator brands offer these financial products and services and how the provision rates vary across seven global regions; identification of the many banking institutions, payment companies, technology firms, insurance providers and assistance entities used in this context by these mobile operator brands and analysis of the partnerships that offer most potential given each brand s number of customers; availability of an accompanying interactive PartnerBASE dataset that details over 1,250 distinct product initiatives and that is fully customisable, searchable and filterable, enabling provision and distribution patterns to be explored across multiple brands, parent groups and geographical regions. 9

10 How can the research be used? You may be able to use this report and the PartnerBASE that accompanies it in one or more of the following ways: gain access to a succinct yet thorough summary of the strategic approach to mobile financial services of 60 of the world s most important mobile telecoms groups how does your organisation seem to be positioned relative to its rivals? understand the current worldwide picture across all types of financial product and service from which mobile operators can realistically generate revenues, and how this varies across seven global regions; appreciate which banking institutions, payment companies, technology firms, insurance providers and assistance entities have been successful in establishing partnerships at either a group or national level with mobile operators; use the interactive PartnerBASE dataset to drill down to the full details see which payment, banking, insurance and assistance services are offered by which mobile operator brands in which countries and with which product providers they co-operate in this context. 10

11 How can the interactive PartnerBASE be used? Filter by brand Identify partners Country Name of brand Number of subscribers (million) Product type Product offered? Operating model Name(s) of partner(s) Owner(s) of partner(s) Name(s) of payment network(s) Brazil Vivo 79.7 Linked bank card / account Yes Joint venture partner MFS MasterCard, Telefónica MasterCard Brazil Vivo 79.7 Direct carrier billing Yes Multiple external partners Bango, Fortumo Bango, Fortumo Brazil Vivo 79.7 Network account No Brazil Vivo 79.7 Talktime / call credit transfer Yes Internal Vivo Telefónica Brazil Vivo 79.7 Mobile banking (bank current accounts) No Brazil Vivo 79.7 Credit card (non-virtual) Yes Multiple external partners Itáu, Santander Itáu Unibanco, Santander MasterCard, Visa Brazil Vivo 79.7 Prepaid card (non-virtual) Yes Joint venture partner MFS MasterCard, Telefónica MasterCard Brazil Vivo 79.7 International payments / remitances No Brazil Vivo 79.7 Consumer finance / micro-credits No Brazil Vivo 79.7 Miscellaneous payments / banking No Brazil Vivo 79.7 Mobile phone insurance Yes External partner Zurich Zurich Brazil Vivo 79.7 Mobile gadget insurance Yes External partner Zurich Zurich Brazil Vivo 79.7 Bill payment protection insurance No Brazil Vivo 79.7 Identity protection insurance / assistance No Brazil Vivo 79.7 Motor insurance No Brazil Vivo 79.7 Household insurance Yes External partner ACE ACE Brazil Vivo 79.7 Travel insurance / assistance Yes External partner ACE ACE Brazil Vivo 79.7 Accident insurance Yes External partner ACE ACE Brazil Vivo 79.7 Health insurance No Brazil Vivo 79.7 Life insurance Yes External partner ACE ACE Brazil Vivo 79.7 Home assistance Yes External partner ACE ACE Brazil Vivo 79.7 Legal assistance No Brazil Vivo 79.7 Medical assistance No Brazil Vivo 79.7 Road assistance No Brazil Vivo 79.7 Miscellaneous insurance / assistance Yes External partner ACE ACE Select a country Choose product See operating model Finaccord Ltd., 2015 Web: info@finaccord.com 11

12 Who can use the research? 1. Mobile telecoms groups: this research will benchmark the activity in payments, banking, insurance and assistance of your direct competitors and other comparators across a wide range of countries around the world with regional coverage of Africa, Asia Pacific (including Australasia), Europe, the Middle East, Latin America and North America; 2. Banks, insurance providers and assistance firms: as a consequence of their sheer size, their on-going relationships with customers and the increasing functionality of the mobile devices used by those customers, strategic partnerships with mobile operators represent a major opportunity for financial services institutions; 3. Payment and other financial technology companies: it is often the case for mobile operators that opportunities in mobile payments, in particular, can only be realised through collaboration with payment or other financial technology companies, especially as they seek to add international functionality to their initiatives in this arena; 4. Management consultancies: if you are helping a financial institution or technology company with its strategy in relation to mobile operators or advising a mobile operator how it can make money from financial services, then this research will explain the global activity of mobile operator brands and groups in financial services, saving time and effort on researching the subject yourself. 12

13 What are some of the key findings? 1. Provision rates through mobile operator brands vary substantially across the different payment, banking, insurance and assistance services analysed Direct carrier billing Network account Talktime / call credit transfer Mobile banking (bank current accounts) Credit card (non-virtual) Consumer finance / micro-credits Mobile phone insurance Mobile gadget insurance Travel insurance / assistance Accident insurance Medical assistance Road assistance 28.0% 33.6% 21.0% 7.0% 39.5% 18.5% 12.2% 10.8% 11.9% 11.5% 66.1% 74.5% 0% 20% 40% 60% 80% 100% Note the chart above shows provision rates across 12 services; the full report covers over 20 distinct types of financial service in total Source: Finaccord PartnerBASE for Global Mobile Operators 13

14 What are some of the key findings? (cont.) 2. Mobile operator brands are utilising a broad array of operating models to develop payment and banking propositions including joint ventures that they own in conjunction with other entities Linked bank card / account Direct carrier billing Network account Talktime / call credit transfer Mobile banking (current account) Credit card (non-virtual) Prepaid card (non-virtual) External partner Multiple external partners Captive partner Joint venture partner Internal Other Consumer finance / micro-credits Miscellaneous payments / banking Source: Finaccord PartnerBASE for Global Mobile Operators 0% 20% 40% 60% 80% 100% 14

15 What are some of the key findings? (cont.) 3. On a worldwide basis and adjusted in line with the total number of customers of their mobile brand partners, the top five providers of mobile phone insurance have a share of relationships of just under 50% Asurion, 15.8% other, 37.7% Assurant, 14.4% Liberty Mutual, 2.6% Telefónica Insurance, 2.9% Marsh, 3.2% Standard Insurance, 3.9% Source: Finaccord PartnerBASE for Global Mobile Operators Zurich, 4.4% Patrimonial Inbursa, 4.0% ACE, 11.0% 15

16 What are some of the key findings? (cont.) 4. Key findings from the executive summary include: at the country-specific level of individual mobile operator brands, direct carrier billing schemes were the most commonly occurring type of mobile financial service, with this functionality available from 74.5% (213) of the 286 brands researched; co-branded credit cards and prepaid cards were found to be available in conjunction with 21.0% and 12.2% of all brands respectively (compared with results in 2012 of 23.5% for credit cards and 5.9% for prepaid cards), whereas 7.0% acted as distributors of consumer finance or micro-credits, and 6.6% offered international payments or remittances; mobile phone cover was found to be the most frequently offered type of insurance or assistance product, as it was available from 39.5% of brands (i.e. 113 of them), with mobile gadget cover available from 18.5% (53); provision of assistance products is much more widespread in Latin America than in the other regions covered by Finaccord's research, with many customers there able to purchase an integrated assistance package from their mobile operator. 16

17 What is the cost and format? Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance is available as a standard PDF document. The interactive PartnerBASE that accompanies it at no further charge is in Excel format. Costs for this research set, sister studies on the same subject and other related titles available at the time of publication are as follows: REPORT Global Mobile Operators: Strategies in Payments, Banking, Insurance and Assistance Global Mobile Operators: Strategies in Insurance and Assistance Global Mobile Operators: Strategies in Payments and Banking Global Bancassurance: Strategies of the World's Top 125 Retail Banking Groups Global Retailer Insurance and Assistance Global Retailer Online Payment Acceptance Global Retailer Payment, Gift and Loyalty Cards Mobile Phone Insurance and Extended Warranties in Europe Mobile Metrics: Consumer Approaches to Mobile Gadget and Phone Insurance and Extended Warranties in Selected Global Markets PRICE * GBP 2,995 GBP 1,995 GBP 1,995 GBP 2,995 GBP 2,495 GBP 3,495 GBP 3,495 GBP 2,495 GBP 3,995 For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the final slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. 17

18 How can the research be purchased? Simple. Just go to the relevant area of the Finaccord website available at and fill in the online order form, clearly indicating: report required type of corporate user licence, if required * billing name address and address purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by . * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers. 18

19 Definitions of mobile payment products and services covered As evidenced by this research, the broad field of mobile payments is one in which there is very significant activity on the part of the mobile operator groups and brands investigated. However, it is actually the case that there are several different types of mobile payment and Finaccord has defined them in this study within five categories as detailed below: Contactless payments: By means of one or more partnerships established with one or more specific banks and / or payment networks (e.g. American Express, MasterCard, Visa) and / or payment technology companies, the ability of a customer to pay for goods or services (usually with a relatively low value) by holding an enabled mobile handset close to a payment terminal with contactless functionality (e.g. using NFC or RFID technology). Payments via linked bank card / account: Payments are taken from a bank card or bank account that has previously been linked to the mobile phone number. This can be direct, where the receiving party takes the card details, or indirect, where the mobile operator guards the card number, in the manner of PayPal. These types of payments are also the most likely to be contactless. Payments via direct carrier billing: Payments are billed to the user through their phone bill (either for prepaid or contract customers). This is typically limited to lower value transactions, and can include goods and services as well as online content; it excludes transfers to other mobile phones. These payments are made without the use of a bank or payment network. Note that purchases of purely phone-related media such as ringtones, wallpapers, screensavers and games whether from the mobile operator itself or from a third party are not included here; these relatively minor (and well-established) purchases are excluded from the scope of this report. However, the acquisition of media products, such as films, music and electronic books, is included. Payments via network account: Payments are made from a separate account opened by the customer with the mobile phone operator. Typically these can have extra cash added to them through local dealers or retailers, payments can be made to companies or private individuals, and the user can receive payments as well and withdraw cash from local dealers or retailers. These accounts can be run by mobile operators on their own, and / or with technology partners and / or with banks or payment networks. Examples include Airtel Money, M-PESA and Tigo Money. Talktime / call credit transfer: A user can send talktime or call credits to another user's mobile phone number. These credits must be used for calls and texts, rather than being used to fund general purchases or being withdrawn as cash. For the person sending the credits, the amount may be either immediately deducted from their prepaid account, or added to their monthly bill, as appropriate. 19