SK Telecom, Citi ogle mobile banking with joint venture

SK Telecom and Citi hope to push the mobile-banking envelope with a new, San Francisco-based joint venture.
The companies unveiled Mobile Money Ventures, a joint venture that aims to develop a platform that “encompasses all key mobile banking value propositions” as it bridges the gap between traditional online services and mobile phones. The offering promises to expand beyond basic m-banking features such as balance management and payment services to support NFC-based retail transactions, budget planning and tracking, expense management and location-based marketing campaigns.
The joint venture aims to leverage Citi’s global presence and distribution channels as well as SK Telecom’s m-banking expertise in Korea. The two firms will equally fund Mobile Money Ventures, and the new company’s board will consist of three executives from each partner.
“At Citi, we are pioneering innovative payment solutions and technology that deliver speed, value and convenience to provide superior service for our clients around the world,” said Ajay Banga, CEO of Citi’s Global Consumer Group International. “Partnering with SK Telecom to develop a comprehensive global mobile financial services platform will simplify how our customers manage their finances, ensuring the experience is fast, easy and secure.”
Citi was one of the first major financial players on the m-banking playground, and offers a downloadable application for AT&T Mobility and Sprint Nextel Corp. subscribers. SK Telecom, which servers more than half the Korean market, has gained traction with services Moneta and M-bank.
The joint venture expects to launch a beta test with Citi customers “in select markets” in the second half of 2008.
Mobile Money Ventures is just the latest U.S. effort from Korea-based SK Telecom; the company formed mobile virtual network operator Helio through a joint venture with EarthLink Inc.