Nordea Sees Global Market For M-Payments
Nordea, Scandinavia's largest provider of e-banking services in signing 2.7 million customers to its pan-Nordic services network, is testing a joint dual-SIM mobile payments pilot with Switzerland's UBS. In partnership with retailer, RuokaNet, and e-ticketing firm, Konopalatsi, the pilot involves a group of 150 customers that are using their cell phones to pay for goods and services. However, Markku Siitonen, head of e-banking at Nordea, says, "mobile payment services will be developed for international markets, while payments via mobile Internet are not an interesting business for banks" due to the narrow margins.Still, Nordea, comprising of Finland's Merita Bank, Nordbanken in Sweden, Unibank in Denmark, and Norway's Christiania Bank, believes it can sign 10 million customers for its e-banking services by 2005. Danske Bank's Peter Staarup warns, "the Nordic markets are not uniform", but Nordea's online customers amount to 973,000 in Finland, 681,000 in Sweden, 248,000 in Denmark, and 142,000 in Norway. Solo, Nordea's e-banking service, has 2.6 million customers, processing over 7 million invoices per month, and offering 500 Web stores on its Shopping Market Portal, the region's largest virtual mall.
While Nordea has a 40 per cent share of Sweden's banking market, SEB CEO, Lars Thunell, reports SEB to be re-focusing on its branch network, as some customers had been lost in the 'push' toward e-banking. SEB had over 639,000 e-banking customers at the end of September, versus 630 branches in Sweden, Germany and the Baltic states. Non-banking entrants into the online banking sector include the Co-op Bank, formed by insurer, Skandia, the state telco, Telia, and the retail chain, KF. Co-op Bank launches in January 2002, with the goal of becoming "the most customer-friendly [Nordic] bank within six years". Related Links
