P2P: The Next Big Revenue Opportunity For Banks

This past fall, Dwolla partnered with one of the leading mobile banking service providers, mFoundry, and their mobile banking product, Fin.X

mfoundry_logo

Your phone has become your record player, your music store, your concert hall. Your phone is your newspaper, your magazine, your access to world-renowned research. It’s become your map, your movie theater, your physical trainer, your post office.

As you know, it’s also become your bank, your ATM, your check, and the way you pay rent, a friend, or a business.

No industry is left untouched.

Dwolla is re-imagining a payments network built using 21st century technology and the internet, providing access on both the web and your phone.

Dwolla will join mFoundry in hosting a Webinar: “Mobile Peer-to-Peer: The Next Big Revenue Opportunity.”

During the webinar, we’ll cover why mobile P2P is critical to staying relevant, growing revenue and creating customer satisfaction. With P2P payments expected to grow to an $80 – $120 billion market by 2014, it’s more important than ever for banks to act now.

According to a study by AlixPartners LLP, 39% of consumers today say that having a mobile offering is “extremely important” or “important” in their decision to switch primary banks. Juniper Research recently reported that the number of people using their phones for banking purposes will grow to 590 million in 2013 and will exceed 1 billion by 2017.

“The ability to access banking information and make transactions ‘whenever you want’ and ‘wherever you are’ is a compelling proposition to most banking customers.” – Juniper Research

The Dwolla and mFoundry partnership will enable banks to:

(1) offer a P2P payments product powered by Dwolla,

(2) offer a convenient mobile payment solution powered by mFoundry’s Fin.X,

(3) boast real-time usability by your customers,*

(4) deliver all of this to the market very quickly,

(5) reduce administrative and operational costs,

(6) enjoy new security layers, compliance measures and data points,

(7) launch a new revenue stream by monetizing the service, and

(8) gain a long term innovation partner with Dwolla.

*We say “boast real-time usability” above because it truly is a unique offering. When banks partner with mFoundry and Dwolla to offer a very competitive mobile P2P solution, they have the incremental opportunity to leverage Dwolla’s FiSync technology – a real-time gross settlement API. This means they can move money from one bank account to another, in real-time, even between different banks, without using any of the existing systems, networks or resellers.

If you are a financial services professional:

Join the Webinar.

Please join us as we discuss the next steps that you can take to make sure that your bank or credit union stays relevant in today’s fast-paced, technology-driven society.

If you are a banking customer:

Help us by answering this question in the comments: Would you switch financial institutions if you could do more with their mobile banking app?

  • http://www.facebook.com/LanceHaverkamp Lance Haverkamp

    “Doing more” with a mobile app is only part of the solution. Most banks have an awful online presence: Even old-geezers like me are looking for checkless checking accounts with the ability to initiate outgoing ACH transactions from personal accounts. Merchants are death on plastic transaction fees. Banks need to be figuring-out how to use consumer & merchant technology to *drastically* slash fees before someone comes along with a better mousetrap and puts them out of business (think American manufacturing, or mop & pop retail).

    • CaityJones

      Thanks for the comment, Lance! I’m excited to see the financial and banking world start to innovate and really take hold of new technology to improve their service and the lives of their customers – hope to see more of this soon.

  • http://www.facebook.com/profile.php?id=1054793366 Zack Kreiter

    Yes, I would in a heartbeat (Chase, USAA)

  • http://twitter.com/JOBrienMKT James O’Brien

    Yes I would. (BOA and Vantage Credit Union)

  • Bill Mulherin

    Of course, especially if part of the package is integration with FiSync so that I could move funds between Dwolla and my financial institution in real time. As a credit union member I’d be reluctant to switch to a bank — but if the advantages of doing so were great enough, I’d consider it.

    • CaityJones

      Thanks for the reply, Bill. I’ve spoken to a few bank customers recently that have made the switch to a credit union in order to use mobile technologies and avoid high fees. We are FiSync integrated with Veridian Credit Union in Iowa, and I’ve talked to several Iowans that have become a member in order to take advantage of the Dwolla integration – which is always pretty cool :)

  • http://twitter.com/bitcoinmoney Bitcoin Money

    If Dwolla were to offer a prepaid debit card option which could be funded with funds transferred from Dwolla (immediate, without having to wait for ACH/direct deposit) then integration with banks would be less important. A Dwolla account complements (or can replace) the bank account — especially for the “underbanked”.

    • Tony Parodi Camero

      That would eliminate the value to the merchants (no 3% interconnect fees) and it would undermine Dwolla’s business model (fees from transactions through the app).

  • Tony Parodi Camero

    Hi Caitlin- I need a contact at Dwolla who can help me enroll my local financial institutions into FiSync. Can you help? Thanks