Bank partnerships with startups key in Mobile Wallet wars

 

Open Innovation, mobile wallets

Mobile Wallets will be fueled by partnerships between startups and financial institutions

Open Innovation Programs in Banks

One more case where Open Innovation programs featuring the relationship between enterprises and the technologies to be found in early stage companies are critical to the future…

While banking experts agree that mobile wallets will eventually take hold, the Fed reports in a recent article that the successful mobile wallet will be an open model that is built on either NFC- or cloud-based payment capabilities, or preferably, both.  The Fed also reports that success will be driven by financial institutions partnering with startups. This partnering can only occur if financial institutions have a systemic approach for finding and working with early stage companies.

It’s not enough to just find the interesting technologies.  Rather, it’s of critical importance to understand how the organization can most effectively engage with early stage companies.

Need for Quick Proof-of-Concept Trials

This includes implementing solutions using quick proof-of-concept trials that test the feasibility of a solution before requiring the startup to go through the complex requisitioning process that so many enterprises have.

In addition, Innovation Labs facilitate the testing process, enabling a quick trial where the business unit leaders can observe the benefits of the solution, and then determine how best to implement it in their unit.

For more analysis of the Fed report, see this article.