According to a survey commissioned by Amdocs and conducted by Ovum, 70 per cent of the respondents in (Asia-Pacific) APAC region are not using mobile financial services (MFS), indicating that there is a great opportunity for mobile financial service providers to explore business opportunities in this untapped market.

The survey focused on the MFS users and non-users worldwide including APAC. In APAC, the study covered 2,200 people across Indonesia, the Philippines, India, and Malaysia. The survey identified security, ease of use, and the ability to use the service anywhere including online and in-store, as the key enablers which would drive MFS adoption. Further, the findings of the survey indicate that going forward, consumers’ desire for new and innovative payment channels for services such as education and medical treatment, will help financial service provider win customer loyalty and drive usage.

Commenting on the survey results, Eden Zoller, principal analyst, Ovum, said, “The fact that a large number of people in Asia are still not using MFS due to lack of awareness is a missed opportunity for all concerned, and particularly unbanked consumers who are exactly those that stand to the benefit most. The survey also shows that ease of use is still a problem as are concerns over security that extends to data privacy, for both non-users and users alike. These are fundamental issues that service providers need to address as a matter of priority.”

Following are the key findings of the survey:

At present more than 70 per cent of the APAC market is still not using MFS. Of the total respondents (including those with and without bank accounts), about 52 per cent respondents are not aware of MFS, 36 per cent are aware about such services but have no plans to use these services, and 14 per cent of the respondents  have subscribed to MFS but do not use it regularly. The trend varies marginally across Philippines, India, and Indonesia. As expected respondents with bank accounts have a higher level of awareness than the unbanked but surprisingly the gap is not too wide.

About 52 per cent of the respondents stated that security is a major concern, while 55 per cent people would like to use the service anywhere – abroad, online, and in-store, and 53 per cent of the respondents stated that they will be encouraged to use MFS if these services were made more simple and easy.

About 64 per cent of the respondents identified ability to use the service anywhere and ease of use as the key incentive for the adoption of MFS in Indonesia. Meanwhile 54 per cent of the respondents had concerns regarding security. In comparison, in India, 53 per cent of the respondents cited security, followed by ease of use (48 per cent), and ability to use the service anywhere (46 per cent) as the key drivers for higher usage of mobile financial services. In the Philippines, ubiquity of the service (52 per cent), enhanced security (46 per cent), and ease of use (41 per cent) emerged as the key enable for higher adoption of MFS.

The majority of respondents in APAC region would like to use MFS for loans, savings, and insurance (30 per cent) and payment for education and medical treatment (26 per cent) over the next 12 months.

Filipinos would like to use MFS for paying for education and medical treatment (29 per cent) and loans, savings, and insurance (25 per cent)

Indians would like to use MFS for paying for education, medical treatment, and utility bills (24 per cent) and loans, savings, and insurance (28 per cent).

Indonesians would like to use MFS for paying for education and medical treatment, (28 per cent) and loans, savings, and insurance (34 per cent)

Sharath Dorbala, head of sales, marketing and products for mobile financial services at Amdocs, said, “Asia Pacific is one of the most important markets for mobile financial services, which is driven by need for financial inclusion as well as convenience.” Dorbala added, “While the vast majority of the population in countries like India, the Philippines, and Indonesia are still unbanked, there is also a growing middle class who needs convenient solution for money transfer, online shopping, utility bill payments and other financial services. As the new research reveals, mobile service providers need to deliver solutions that provide basic banking services along with convenience of payment for various services.”