Payments Watch

…payments related revenue for banks anyway: This is a good post by James Gardner, a financial services veteran who writes the BankerVision blog.

He is discussing how the role of banks is going to change dramatically over the next 10 years…he says the following regarding payments:

If not, then they face declining revenues as traditional revenue streams, such as those from payment systems and less complicated loan products, go to non-bank institutions that have more efficient business models. Even a telco - with a single means of billing a customer, no interchange, and, let’s face it, the potential of much broader distribution (who doesn’t have a mobile phone always with them?) - is more efficient at processing some classes of payment than a bank.”

An interesting side note is that I recall reseach on online payments by Javelin (I believe) which suggests most consumers would like their broadband supplier (usually a cable company or telco) to handle payments made online. So if your telco happens to be your isp - perfect.

Anyway, read the post - it is good.