News

TowerGroup analyst comments on Fiserv Mobile Money announcement

September 10, 2008

• Fiserv Mobile Money fires a competitive shot over the bow of other core banking and mobile banking/payments players — given that this new offering is now the core banking market's only single-platform triple-play solution that combines banking and payments functionality.
• Fiserv is a heavyweight champion in financial services technology, owning the primary technology relationship with over 6,000 banks and credit unions in the U.S. But it has been perceived to date as a mobile banking laggard. This alliance will allow Fiserv to gain sophisticated mobile finance capabilities, while giving M-Com instant U.S. market clout.
• Fiserv Mobile Money will further invigorate the still nascent, yet vibrant, mobile finance market by leapfrogging direct competitors with a model that enables a trifecta of virtual services: best-of-breed mobile finance, Internet banking and bill pay.
• Despite the deal's many benefits, Fiserv and M-Com will be challenged to match their sophisticated technology capabilities and pricing to the still nascent needs of the Fiserv customer base, in particular in providing an ASP-based solution.