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Part 3 | Banks, Mobile Technologies and SMAC

MobileEnterpriseStrategies.com

This article is Part 3 in a series on Banks, Mobile Technologies and SMAC.  Click here to read Part 1 andPart 2.

In this article my colleague Peter Abatan, a Mobile Technology Consultant and banking expert with Cognizant,shares his insights into the digital transformation happening in the banking industry.  This transformation reflects new and innovative business models, the rapid adoption of mobile apps for banking, social media and other cloud based solutions.  In this article Peter and I discuss P2P (peer-to-peer) lending services and their potential integration with Internet based and mobile banks.

P2P lending sites are part of the emerging digital transformation happening in the banking industry. Their purpose is to provide higher returns for investors/savers, while using SMAC (social, mobile, analytics and cloud) based technologies to help find lenders for people/companies that may not meet a traditional bank's criteria for lending.  They are a in effect, match makers.  They are the match.com for people wanting to lend money for higher returns, and people or companies wanting to borrow it.

P2P lending sites can be risky, however.  There is little protection for investments.  If you invest and a borrower defaults on their loan, your money is at risk.

According to the P2P Finance Association this market sector is growing at a rate of 250% per year, but not all are successful. In December of 2011, P2P lender Quakle became insolvent and many lost their investments.

I believe the logical evolution of this market is for P2P lenders to evolve into, or integrate with Internet/mobile banks.  As an Internet/mobile bank, P2P lenders would be able to expand their products  and services into things like mortgages and insurance to compliment money lending services.

P2P lenders as Internet/mobile banks, will be in a good position to compete with traditional brick and mortar banks as they can offer better rates on savings and other investment tools, plus they will likely have a lower operational cost.   Lower operational costs are the result of not needing to maintain traditional banking processes like check processing, money handling and logistics, large numbers of employees, bank branches and physical security services.

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Kevin Benedict, Head Analyst for Social, Mobile, Analytics and Cloud (SMAC) Cognizant

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Learn about mobile strategies at MobileEnterpriseStrategies.com Follow me on Twitter @krbenedict Join the Linkedin Group Strategic Enterprise Mobility ***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and SMAC analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

More Stories By Kevin Benedict

Kevin Benedict is an opinionated futurist, Principal Analyst at the Center for Digital Intelligence™, C4DIGI.com, emerging technologies analyst, and digital transformation and business strategy consultant. In the past 8 years he has taught workshops for large enterprises and government agencies in 18 different countries, and is a keynote speaker at conferences worldwide. He spent nearly 5 years working as a Senior Analyst at Cognizant (CTSH), and 2 years serving in Cognizant's Center for the Future of Work where he wrote many reports, hundreds of articles, interviewed technology experts, and produced videos on the future of digital technologies and their impact on industries. He has written articles published in The Guardian, wrote the Forward to SAP Press' book titled "Mobilizing Your Enterprise with SAP", published over 3,000 articles and was featured as thought leader and digital strategist in the Department of Defense's IQT intelligence journal. Kevin lectures and leads workshops, teaches and consults with companies and government agencies around the world to help develop digital transformation and business strategies. Visit his website at C4DIGI.com.