Tag: mobile banking service

Mobile banking venture launched by ING Direct founder

Arkadi Kuhlmann is starting a new smartphone based service that is being called ZenBanx.

The founder of ING Dierct, Arkadi Kuhlmann, had been out of the public eye for quite some time, but has recently entered into a mobile banking venture with a new partner, Duca Financial Services Credit Union.

As was the case in his last financial services venture, Kuhlmann is seeking to offer an alternative to the standard.

ZenBanx is designed to provide a cheaper and easier form of mobile banking that will allow for foreign currency exchanges, transfers, and other types of transaction. According to Mr. Kuhlmann explained that the pitch is a smartphone based “regulated bank account with a multi-currency capability” that is “designed to let money travel as freely as humans.” ING Direct Canada was a company that was launched in 1997 and that expanded successfully a few years afterward into the U.S.

ZenBanx is a mobile banking venture in which Kuhlmann has been participating since 2012.

Mobile Banking ServiceING Groep NV sold ING Direct Canada to the Bank of Nova Scotia in 2012 for $3.1 billion. Kuhlmann stated that using this service would give customers the ability to save in as many as 5 different currency positions, as well as the ability to exchange among them. He also said that customers would be able to send money internationally in a way that is far less expensive and less difficult than the current options that are available to consumers.

At the opening of this mobile payments service, the currencies that will be available for exchange and transfer will be the U.S., Canadian, Singapore, and Honk Kong dollar, the British pound, the Euro, the Japanese Yen, and the Indian Rupee.

Kuhlmann spoke of this mobile banking service and his interpretation of ZenBanx by saying that “I think banking and money hasn’t really been able to keep up with a lot of the needs now,” adding that “You and I can move freely around the world, but moving money has become costly and tedious.” Through his past in the financial sector, he has considerable experience in building and working with a less expensive model of banking.

Banks are falling behind on mobile commerce

Mobile payments are evolving and many banks may be in danger of getting left behind by consumers

The mobile payments space is evolving at a rapid pace and banks are struggling to keep up. Innovative mobile services appear to be launching on a daily basis and many of these services are changing the way people pay for products online and in the real world. Those finding the most success in this field are those outside of the financial service industry, but banks still have a chance to establish a stronger presence in the mobile commerce market.

Rapid adoption of mobile payment services highlights the slow progress banks have made

The rapid adoption of mobile commerce among consumers is pressuring banks to become more mobile-centric. Money transfers are becoming more common on mobile platforms and fewer people are relying on banks for their financial needs. Moreover, those participating in mobile commerce are making use of platforms developed by software firms and not those made by banks. Typically, the platforms developed by banks are seen as cumbersome and somewhat inconvenient to use regularly.

Many banks have an opportunity to engage mobile consumers through simple services

Banks falling behing in mobile commerceBanks have existed as the primary money service provider for years. As such, many people still look to banks for the financial institutions that they are and many have faith in their bank’s ability to provide attractive mobile services. Some banks have found success in engaging mobile consumers through the use of simple banking applications. These apps have served as a way for banks to expose themselves to the mobile spectrum and examine what mobile consumers are interested in and what types of services they do not like.

Some banks may have to emulate companies like PayPal that have had success in engaging a mobile audience

In order for traditional banks to remain relevant in a world where mobile technology is becoming a dominant force, they will have to find ways to mimic other financial service providers that have an overarching focus on the digital space. PayPal is a primary exemplar of what can be accomplished through an unconventional focus on the mobile space.