An amusing article on Gizmodo by someone clearly not convinced by Movenbank’s take on banking. Netbanker has a somewhat more balanced article on Movenbank, which was launched in alpha stage in October 2011 by it’s founder and chairman Brett King.

The concept behind the US based Movenbank is an interesting one, albeit probably way ahead of consumer demand and real world practicality (King himself thinks the transition will take 5-7 years). The bank is the first to dispense with physical ATM/Debit cards and relies solely on using the NFC capabilities on your mobile phone to facilitate payments, it is also, obviously, exclusively online. In addition it has other novelties like the concept of a CRED score, which is basically a behavior based rewards system rewarding you for such things as reaching savings goals, recommending new customers etc.

I have no doubt customers will take to using their mobile to make payments via NFC en mass once more phones have the capability (currently NFC is only available on a handful of phones like the Android based Samsung Galaxy Nexus) and more merchants start to install NFC enabled terminals. Whether or not customers will decide they can live without the ability to get cash out of an ATM is another matter, particularly as other providers will just add NFC payment capability to their standard offering. King and Movenbank will need to offer customers more than this to survive as a consumer facing brand, particularly when up against the traditional players as well as the want to be owners of this space such as Google and PayPal.

Leave a Reply

If you want a picture to show with your comment, go get a Gravatar.