Wednesday, March 14, 2012

The Demise of Nokia Money

Dramatic news in the mobile money world this week with the announcement that Nokia was withdrawing from its Nokia Money business to focus on core offerings. The change in strategy will not happen immediately however, with a Nokia company spokesman outlining that the service will continue to operate in India whilst it works on an exit strategy with its partners, regulators and other stakeholders.
For those of us in the industry, this hasn’t come as a major surprise, as there have been rumours and discussion about the possibility of this for some time, and visible changes in strategy and senior management from Nokia as they completed the test and learn cycle of their financial services offering. As an industry however, it is interesting to consider what lessons can be learned from this experience. As an observer over the last three years, three major observations on challenges with Nokia Money spring to mind. These are; overblown expectations, strategic alignment and distribution.