Global Trends in Mobile Banking

What is mobile banking?

What are mobile payments?

What is m-commerce?

How do they relate to finance in China?

Shedding Light on Mobile Banking

P2PC2C B2C

Mobile banking requires a bank account or e-account

2013

E-Commerce/Banking Services

The Power of Brand

How big are mobile payments in China? $1.6 trillion in transactions were made in 2013

Competition

• Financial and non-financial institutions are competing within the mobile banking/payments market • Financial institutions are marketing and launching mobile banking

platforms• Nonfinancial institutions launch mobile phone apps that attract

customers by free or discounted incentive and higher real returns• Regulation has been controversial so far • Banking licensing from PBC June 2010• Investment channel regulation CSRC

WeChat: From Social Media to Mobile Payments

Drivers Risks•Unregulated economy•Virtual asset theft•Privacy and information theft•Internet services abuses•Credit card fraud•Money laundering•Taobao: number one of targeted websites in phishing attacks•leapfrog effect•Early withdrawal of bank deposits•MMF no risk-free investments-> lack of understanding

Ecommerce

Urban Population Regulation

Smart Phones

Mobile

Banking

Is this new area of the economy considered shadow banking?

How does this impact rural urban migration and inequality in China?

Future Trends?