BAI Retail Delivery: Branson Wows, but Mobile 2.0 Rules
WASHINGTON — Keynotes by Sir Richard Branson, the $4 billion Virgin serial entrepreneur, and global strategist Jonathan Salem Baskin. Panel after panel on mobile banking, peer-to peer-payments and the rules of engagement with social media. A tentative obituary for near field communication, an innovative payments technology around which enthusiasm seems to be crumbling.
The plain message at the mid-October BAI Retail Delivery conference was that a new day is dawning in financial services, it’s no longer your grandfather’s spread business and new tools bring new opportunities to those who figure out how to use them.
Apps developer mFoundry, a Larkspur, Calif.-based company with 800 mobile banking customers, announced at BAI that it was opening its app to include content from a range of third- party developers. mFoundry CEO Drew Sievers pointed to payments innovator Dwolla and prepaid card specialist Blackhawk Network as cases in point. Sievers claimed that not only will the more powerful app that results be more engaging for consumers, it will also produce new revenue streams for the financial institutions that hop aboard. He envisioned a three-way split of profits resulting from sale by Blackhawk Network on a prepaid card, with Blackhawk, mFoundry and the financial institution all sharing in the proceeds.
Similar splits would occur for other revenue generating tools put into the mobile banking app. “We will be the gatekeeper,” said Sievers, but he insisted there would be cuts for financial institutions that opted in.