Telefonica is launching a mobile banking service as the number of disruptors to the financial services market continues to grow.
While Telefonica’s deal to sell the O2 network to Three owner Hutchison Whampoa may have fallen through, the firm is not resting on its laurels and will launch the O2 Banking offering in Germany in late summer 2016.
The service will use white-label technology supplied by Fidor Bank in the form of its cloud-based infrastructure for its back-end technology. The mobile-only accounts will onboard customers using a video link for documentation checks via a smartphone and permit P2P account transfers.
The account will come with an O2 MasterCard for cash withdrawals and shopping, and a financial planning tool to provide an overview of spending. Customers will be able to request real-time notifications of transactions and events by app push messages.
In addition to these features, smaller consumer loans will be available directly via the app. This has all been made possible by the partnership between Fidor Bank and Telefonica Germany. Under the partnership Fidor Bank is providing O2 with a banking license that is valid across Europe, along with individual customer, card, and transaction services.
Matthias Kröner, CEO of Fidor Bank AG said: "This partnership is the first truly disruptive alliance in Germany between a successful digital telecoms company and an innovative digital bank.
"Our collaboration gives customers the best of two digital worlds: quick and easy banking services via a mobile app, combined with innovative additional services from their O2 mobile contract."
The technology being provided runs on a proprietary cloud-based infrastructure called the Fidor Operating System (FOS).
This system is a modular program that includes communications platforms that are designed for direct interactions with customers via various platforms such as web or mobile apps. In addition to providing data analysis and customer loyalty programmes, the system allows for interactions with customers through forecasting models, payment solutions, banking, community solutions and content management systems.
Although the service is currently only going to be launched in Germany, there is potential for it to be launched throughout the rest of Europe, something that is likely dependent upon its success.
The launch highlights another example of how the financial services sector is being significantly disrupted by new players. Fidor Bank, a German online bank, started in 2009 and currently has around 300,000 community members.
Collaboration between fintech companies such as Fidor Bank and technology companies is becoming increasingly common as tech firms find a new market to break in to. A partnership with a tech company can be a good way for a fintech to increase its rate of development and access to consumers through fast development of new features.
