Why VMBS joining AIS and Quisk Mobile Money 2.0 Platform as Avengers Assemble

VMBS has finally made up their mind as it relates to Mobile Money.

They're now signed up with AIS (Advanced Integrated Systems) and Quisk to be a part of their Mobile Money 2.0 launch as reported in “More Mobile Money Products Coming”, published Friday May 13, 2016 by Tameka Gordon, The Jamaica Gleaner.

VMBS has been testing a Mobile Money platform in partnership with AIS and Quisk since December 2015. They're also been making upgrades to their ABM (Automated Banking Machine) Network as noted in the article “Victoria Mutual To Roll Out Upgrades”, published Friday May 13, 2016 , by Tameka Gordon, The Jamaica Gleaner.

Pending BOJ (Bank of Jamaica) approval, these upgrades represent an expansion of the building society as they ramp up their efforts to become more efficient and increase their customer base.

Their upgrades include:

1.      Third-party transfers to other local banks

2.      Wire transfers to overseas financial institutions

3.      Upgraded online banking platform

4.      Kiosks with Internet banking capabilities

5.      ABM (Automated Banking Machines)

6.      Included cheque-deposit boxes

These upgrades are being added to their fifteen (15) branches. With ten (10) branches outside of Kingston, the upgrades will encourage the unbanked to join VMBS, especially as their kiosks and online banking platforms will make paying bills to some thirty (30) service providers a snap!

AIS, Quisk and VMBS - Avengers Assemble for Mobile Money 2.0 secure platform

Yes, it is indeed Avengers Assemble moment.

AIS and Quisk Mobile Money 2.0 platform basically makes accessing your bank account for a myriad of services as easy as sending a text message as explained in my blog article entitled “How Quisk and AIS Mobile Money 2.0 heralds Cashless Society in Jamaica in July 2016”. 

The simplicity and high level of security that Mobile Money 2.0 affords by using SMS (Short Messaging Service) did not go unnoticed by many in the financial sector. After all, the use of Text messaging, which uses A5/1 codebook typical of most GSM (Global Systems Mobile) Telecom Networks, employs a 64-bit encryption key.

This makes their Mobile Money solution ultra-secure, as App based Mobile Wallet are easily compromised using various software hacking tools as described in my blog article entitled “How NSA can hack the Baseband Processor and control your smartphone”.

This means that their Network are relatively secure, a fact that AIS and Quisk use as the main selling point for Mobile Money 2.0. Already there are some interested parties who have plans to roll out the Quisk and AIS Mobile Money 2.0 platform by July 2016:

1.      NCB (National Commercial Bank)

2.      Lasco Financial Limited

3.      VMBS (Victoria Mutual Building Society)

4.      JMMB (Jamaica Money Market Brokers)

Lasco Financial Services most likely is looking to reduce long lines and make it possible for their members, many of whom do not have smartphones, to spend directly from their smartphones. But their being awfully quiet about it, to quote LFSL Managing Director, Jacinth Hall-Tracey: “It's not at the stage that we can speak about it yet because our application is not even approved yet. We are making our application now”.

JMMB is still on the fence, as Mobile Money might not benefit their investment business but might boost their banking membership by making increasing their customer base. However, they too are playing it quiet, to quote electronic services manager at JMMB, Teverly Gray, who said that JMMB is “at the initial stage of exploring Mobile Money solutions with varying stakeholders” and “continues to explore the possible implementation of Mobile Money platform”.

They're definately be real competitors to JCCUL (Jamaica Co-operative Credit Union) and Mozido Jamaica CONEC Mobile, which still doesn't allow access to your money on the weekends as noted in my blog article entitled “JCUES now CONEC Mobile Wallet - Why CONEC Mobile Wallet still inconvenient despite Paymaster”. 

So a quick roll call of the competition is in order.

GraceKennedy, Digicel and Supreme Ventures - Gung-ho Mobile Money Cowboys

According to the BOJ, since December 2015, five (5) Mobile Money provider have applied to begin doing testing of their platforms.

I know that Digicel is super close to launching their Mobile Money platform in partnership with Paymaster as explained in my blog article entitled “Why Digicel's purchase of Paymaster means Mobile Money is launching in 2016”. 

Digicel has confirmed that Sagicor Bank Jamaica is doing all the legwork in terms of talking to the BOJ. GraceKennedy is set to launch Mobile Money soon as noted in the article “GraceKennedy promises to roll out mobile wallet in 2016”, published Wednesday, May 04, 2016, The Jamaica Observer. 

GraceKennedy have already begun testing their platform with some 200 members of GK's staff as their guinea pigs. They going after everything in a battle to match up their services to AIS and Quisk:

1.      Cash-in and cash-out transactions at agent locations

2.      Person-to-person transfers

3.      Real-time top-up for FLOW and Digicel

4.      Bill payments, possibly using Bill Express 

To quote GraceKennedy CEO Don Wehby, they're being extra careful to make sure everything they plan to offer actually works as advertised: “GraceKennedy's approach to the Mobile Money offering has been to spend the time to ensure that we deliver to the market a product that anticipates and meets the needs of our customers”.

Finally don't forget Supreme Ventures. The gaming company has upgrade to an IFLEX Betting Platform, making it possible for customers to place bets and collect their winning via their smartphone App as described in my blog article entitled “Supreme Ventures Limited IFLEX Betting Platform Upgrade - How Mobile Gambling via Smartphone is finally coming to Jamaica”.

It's rare in the Fintech World to see so many banks so gung-ho about a product that'll basically send more of their employees home. Still, the promised level of efficiency means that other players are eager to get on the Mobile Money wagon.