Now Banks are Worried About "Dumb Pipe"

Dickson Chu, who is leading Citi’s participation in the Google Wallet effort, says the bank understands its role in the coming era of mobile commerce. Citi intends to provide the secure payment piece to mobile wallets and other m-commerce offerings.

This “bank grade” payment service would be combined with the new mobile advertising-funded models planned by emerging m-commerce players, such as its partner Google.

Chu noted that banks are not the most innovative of organizations, something that sounds familiar if you work in the telecom business. He also warned that the evolving m-commerce landscape “must not relegate us to becoming a dumb pipe." That also sounds familiar.

Citi Exec: Banks Must Not Get Left Behind in Coming Era of M-Commerce