Question

Should Telenor offer financial services in retail banking in Serbia? If it does, what strategic type of financial services (i.e., m-payment services vs. being a mobile or full retail bank)? What are the risks and the opportunities?

Answer 1

In addition to or even replacing retail banking in Serbia, I think that Telenor should also provide mobile and expanded online financial services. Because of the opening times and procedures, lack of retail outlets or the relatively hefty administrative requirements, the banks customers were not satisfied with the service provided by the Serbian banks. The start of mobile banking, bank payments and the update of online payments would therefore reduce banking costs which would attract 31% of clients who would prefer to use mobile banking should they pay lower fees than normal banking (Figure 3). (Figure 3) It also saves a lot of time for customers to line up at the bank waiting for the lack of employees to be served. In the majority of cases in Serbia, customers line up for hours and are then turned away due to few paperwork mistakes. Many customers are attractive to the ability to access and control your finances. This is because bank hours and mobile links are available everywhere and any time; even if the internet is not available. The rate of growth and popularity of mobile banking is projected to increase by 30 percent over the next quatre years. Mobile banking has plenty of growth potential, with 73 per cent of Serbia 's population having a bank. However, only 9% of customers used online banking and only 6% used mobile banking. In contrast to retail banking, some risks with mobile banking and online banking are the major security issues related to data and private protection legislation and the challenge of creating a smooth customer experience even if the services are all integrated. As long as security and personal information safeguards are available, 34% of Serbia expressed interest in using mobile banking. Telenor needs to anticipate what services and a product customers need to provide and that fulfill these customer needs. It is not only necessary, but also a great opportunity for Telenor to build trust with the customers, that consumers are uncertain about this new method of banking. 62% of those who don't use online banking know little if anything about it, and this is something that can be fixed by advertising, targeted marketing and product education for the mobile / online banking services. The advantages of providing customers in Serbia with mobile and expanded online financial services are well above their costs and the costs that remain can be determined through marketing campaigns to build consumer confidence and services education.