Compass Intelligence

Among the numerous news reports about T-Mobile's G1 Google Android-based mobile phone, Visa’s plan to launch Android based mobile applications caught my eye.  The key words are “Alert”, “Discount” and a hidden one, “Mobile Phone Advertisement”.

According to Visa, the first three mobile services to be developed for the Android platform are— alerts, offers and location help.  

-          Alerts: Consumers will receive near real-time notification of purchase activity.

-          Offers: Consumers will receive targeted offers from merchants directly to their phone. These offers range from discounts to loyalty offers.

-          Locator:  Consumers will be notified of the nearby locations of merchants sending them offers, or of an ATM that accepts Visa.  

Credit card fraud is a growing concern especially in a recession time. “Every recession since the late ’50s has been associated with an increase in crime and, in particular, property crime and robbery, which would be most responsive to changes in economic conditions,” according to a New York Times article last week*.   The Visa mobile phone “Alerts” on credit card transaction could be very useful for consumers to keep an eye on their wallet.

In today’s down economy, saving money is becoming a priority in the minds of many consumers. More and more people are turning to coupons and discounts to save a little extra money. Mobile phone “discount offers” could help people to save money whenever and wherever possible.

A mobile wallet watcher and coupon books look attractive to consumers. However, the service may not be free. Consumers would enroll for Visa mobile services via their mobile device in order to access the services. Are consumers going to buy the services? It depends on three things.

-          Will Google G1 phones prove to be a winner with consumers, especially among Generation Y users?  Based on a recent report on Mobile Banking from Compass Intelligence, younger users and smart phone users are the driving forces behind mobile banking as shown in the following chart. 

-          How much do the Visa mobile services cost?

-          How difficult is it to implement the service? How easy is it to turn the services, especially the “discount offers”, on and off?

The “discount offers” service could also bring in additional revenue for mobile service providers such as mobile phone advertisement fees from businesses who wants to attract customers by offering discounts via mobile phones.  Sounds familiar? Like a mobile version of Google online advertising?   If the service will generate income for the service provider, why not make it free for consumers? The mobile coupon book would be very welcome by consumers if it is free like most paper coupon books. 

What do you think of the Visa mobile services? Are you going to give them a try when they are available?

GET A FREE DOWNLOAD ON MOBILE BANKING OR SEE DETAILS ON THE LATEST MOBILE BANKING REPORT: http://www.compassintelligence.com/content.aspx?title=MobileBanking

Written By: Nian Cheng           http://www.compassintelligence.com/

The overall housing crisis is expected to hit the IT market to some extent either through tighter lending practices to businesses or consumers slowing spending on gadgets and services.  At this point, it is expected to affect consumer spending more so than business.  I wanted to share a few interesting tidbits and facts about the current housing and banking market pulled from Financial press releases, Bloomberg Data, and RealtyTrac:

• Citigroup and Washington Mutual have recently reported losses, while Wells Fargo reported profits
• Countrywide Financial Corp. and IndyMac Bancorp have closed down, Bank of America purchased Countrywide becoming the largest lender
• Citigroup is the largest bank in the U.S., is expected to disclose earnings tomorrow
• More than 100 businesses/banks have closed, been sold, or halted operations due to the subprime lending practices
• California ranked Second amoung U.S. states in June for foreclosures (According to RealtyTrac Inc.)
• Foreclusures nationwide increased 53 percent in June compared to June of 2007
• More than $400 billion of losses and writedowns have been liked to the U.S. housing slump, according to Bloomberg data

There are a growing number of online websites that provide a network of lenders to support loans for small businesses.  Now these sites are interesting because it is not banks or financial institutions loaning the money, but everyday people like you and me.  This is not only cool because it gets the banks out of the equation, but the people lending the money can also track the progress of the company and can feel very involved in the success of that company it lended the funds to.  Some of these sites are microloan sites for personal loans and some are specific to projects or small businesses.  Borrowers can state their case or cause and hope that a lender will bite.  There are several different business models out there with these sites, but all are interesting!  Here are a few of the interesting sites that I found:

www.zopa.com

www.prosper.com

www.fynanz.com

www.greennote.com

www.kiva.com