Mobile Phones Key to Reaching U.S. "Underbanked" Consumers

There is good reason to believe that mobile devices could become a key means for "unbanked" consumers in U.S. markets to avail themselves of banking functions. The reason is the substantial use of mobile devices by "underbanked" consumers, according to Javelin Strategy and Research. 


Though mobile payments and mobile wallet efforts are seen as the bigger part of mobile financial services opportunities, there is a substantial opportunity to reach people who do not have checking or bank accounts.


Javelin defines the "underbanked" as U.S. adults without a checking account, while unbanked consumers do not have a banking account. 


There are an estimated 35 million U.S. adults (15 percent of the U.S. population) in those categories.

Is YouTube the Future of Smaller "Cable Channels?"

As cable operators and other video distributors grapple with ways to limit the cost of some packages, in response to growing consumer unhappiness with the cost of subscription video, will YouTube emerge as a primary distribution partner for smaller networks that might find themselves unable to gain or keep carriage on cable, telco or satellite video services?


Some, including YouTube, think so. YouTube is exploring selling subscriptions to access to some of its video offerings, potentially providing a way for certain cable channels to be available outside the traditional "bundles" offered by cable network providers, said YouTube CEO Salar Kumangar. 


Cable channels with smaller audiences will have a tougher time gaining carriage as video distributors create lower-cost tiers of service offering fewer channels, one might argue. If so, those network might be forced to seek carriage on platforms such as YouTube. 

Tablets Reach Critical Mass in U.S. Market

Tablets have quickly reached a critical mass in the U.S. with almost 20 percent of all  smart phone owners using tablets during the three-month average period ending April 2012. 


A study also found that tablet users were nearly three times more likely to watch video on their device compared to smart phone users, with one in every 10 tablet users viewing video content almost daily on their device, according to comScore. 


“Tablets are one of the most rapidly adopted consumer technologies in history and are poised to fundamentally disrupt the way people engage with the digital world both on-the-go and perhaps most notably, in the home,” said Mark Donovan, comScore SVP of Mobile.


For many app and content providers, the key development is creation of an additional "screen" for content consumption, joining TVs, PCs and smart phones. 

Tablet Users Among Mobile Audiences 3 month avg. ending Apr. 2012 vs. Apr. 2011  Total U.S. Mobile Subscribers (Smartphone & Non-Smartphone), Ages 13+  Source: comScore MobiLens
	% of Audience that Uses Tablet
	Apr-11	Apr-12	Point Change
Total Mobile (Feature Phone & Smartphone)	4.7%	16.5%	11.8
Smartphone Only	9.7%	23.6%	13.9
Feature Phone Only	2.3%	10.4%	8.1

Tablets are Shopping Platforms

More than half of tablet owners surveyed by Zmags in January 2012 reported shopping on their tablets at least once per week and 12 percent shopped daily. Already, nearly 30 percent of Internet users owns a tablet, and that should grow to more than 50 percent sometime in 2014 or 2015. 

Offers are Where Mobile Wallet Value Lies, Says Isis

The value of a mobile wallet is in the data-driven offer and coupon systems that allow consumers to save money, and "Isis does not directly deliver any of that value," says Jim Stapleton, Isis chief sales officer. That isn't to say Isis believes it does not add value, simply that the value comes as Isis is an enabler for its partners. 


Isis also emphasizes that it is a partner for banks, not a competitor. "At Isis, we're very much a platform provider for the banks," said Stapleton. 


Of course, not every contestant hopes to build a new business on offers, advertising, analytics or loyalty mechanisms. PayPal has been in the payments business, and wants to extend from online to offline. Square, Intuit and Sage also believe the revenue model is in handling payment transactions. 

Worldwide mobile payment transaction values will surpass $171.5 billion in 2012, a 61.9 percent increase from 2011 values of $105.9 billion, according to Gartner. 

The number of mobile payment users will reach 212.2 million in 2012, up from 160.5 million in 2011.

"We expect global mobile transaction volume and value to average 42 percent annual growth between 2011 and 2016, and we are forecasting a market worth $617 billion with 448 million users by 2016," says Sandy Shen, research director at Gartner. 

Mobile Devices will Pass PCs by about 2013

According to comScore, the number of mobile "computers" will pass desktop PCs sometime in 2013. 


Other forecasts suggest roughly the same thing, given sales trends. 

Cord Cutting Might Only Save a User About $10 a Month?

The point of video cord cutting typically is to "save money." So what potential savings might exist if a user with cable TV service quite that subscription, then signed up for a service such as Aereo, providing off-air signals, plus some content from Netflix or iTunes?


About $10 a month, says Barclays media analyst Anthony DiClemente. According to the Barclays analyst, users also have to factor in the higher costs of an unbundled broadband connection as well. 


Some might disagree. DiClemente uses a a cable TV charge of  $60 a month, which many users will find too low, substituting an $80 to $100 a month figure, instead. . In that case, a user might well save $30 a month to $50 a month for an alternative over the top approach.