Mobile operators as banks or vice-versa? and: regulators interest in the best efficiency for payments

This paper addresses the strategic challenges of deposit banks, and payment clearinghouses, posed by the growing role of mobile operators as collectors and payment agents for flows of cash for themselves and third parties. Through analysis and data analysis from selected operators , it is shown that mobile operators achieve as money flow handlers levels of efficiency , profitability ,and risk control comparable with deposit banks – Furthermore , the payment infrastructures deployed by both are found to be quite similar , and are analyzed in relation to financial profitability , strategic challenges and opportunities This paves the way to either mobile operators taking a bigger role ,or for banks to tie up such operators to them even more tightly ,or for alliances/mergers to take place ,all these options being subject to regulatory evolution which is analyzed as well. The consequences are mapped out in operational and regulatory terms-The issue of industry convergence , a few say , " has had the attention of both banks and operators for years " ....– Financing issues apart, isn't the in fact that this possible convergence at operational level has been largely ignored, as operators thought that banks were better at payment services , while banks thought operators were better at communication services ? The recent attention given since 2006 to mobile banking by mobile and smartphone terminals