The Bloor Perspective: m-banking opportunities, three-day weeks revisited and Amazon in the dock

What better application for the mobile technology space than internet banking on a mobile? Check funds, transfer money and pay the odd bill. Mobile devices are now relatively cheap and certainly more attractive than investing in a PC to achieve the same goals. But will the dream become a reality?

From a banking perspective, transactions will be cheaper if executed over the internet or mobile device, yet some banks are still not prepared for m-banking, and those that are don't seem to attract consumers as well as they would like.

The mobile interface, a small screen and cumbersome keypad, makes life difficult for consumers. What's more, most offerings have used WAP because adding a WAP component to an existing internet service has been the easiest and cheapest method to deliver an option to the customer.

Surprisingly, m-banking is growing in markets most observers wouldn't dream of. Rather than forcing the self-service technology on a western European market saturated with technology, the best places to make inroads are often the most obscure. Countries such as Slovenia and Estonia are growing for m-commerce and banking, as many of the citizens don't own a PC. This means the banks have a far better chance of establishing mobile as a main self-service means of banking.

M-banking is still in its embryonic stage, but the future is looking brighter each day. Instead of being far away, many mobile applications are here now. Already we are seeing GPS to enable customers to find cash point machines. It's the next stage that will involve the 3G networks.

As the technology evolves, so do the applications and the need for further complex services and facilities. Recently mobile banking developments show it will be interesting to see what develops and what evolves.
One thing is for sure, the need for cash is becoming less and so will its availability.

*A whole new way to work?*

In the 1970s, three and four day working weeks were common, either because of industrial disputes or poor economic conditions. Now there is the emergence of 35-hour working weeks, driven by too much rather than too little work.

The French have been at the forefront of the shortened working week with a gradual move towards more flexible working conditions. They redefined the working unit from hours to days, enabling companies to develop a set of working practices that can be tailored to their needs and the needs of employees.

So far the change has affected five million employees and has led to increased employment through the creation of 200,000 jobs. While France is leading the way, other countries - with the exception of the UK - are adopting similar policies. In the US, many jobs in the industrial and service sectors based on a 40-hour week have been replaced with a 30-hour week.

The results of all this? First, increased productivity where people who work fewer hours actually produce more. Plus, more flexible overall working practices allow employees to reconcile work time with the demands of families and social lives. Finally, the adoption of such practices increases the number of women in the workforce.

Beyond establishing a better work-life balance, today's employees expect better recognition, less bureaucracy and an organisation that will develop their skill sets.

Changes also challenge traditional working values. In Germany, Fridays are moving towards being recognised as a half day and in the high-tech companies of California where attracting and retaining the right staff is critical to the success or failure of a business alternate Fridays are often taken as days off.

To allow all this, companies must develop a new flexibility alongside greater productivity, and a new business culture is starting to emerge.

This is only the start of things to come. With increased competition for acquiring and retaining employees, companies have to think of new and innovative ways to attract and keep the best staff. Changes in working hours become changes in working weeks which in turn lead to changes in the working year. In short, the whole concept of an individual's working life is in flux.

*Amazonsued.com*

It must be tempting to keep bad news away from markets until shares have been sold or that latest stock issue has been completed. Unfortunately, however, that kind of insider dealing is illegal and invariably lands perpetrators in court.

There have been a few such court actions recently and now Amazon finds itself defending its actions. The class action on behalf of all those that invested in Amazon between 2 February and 9 March 2001 claims Amazon failed to provide adequate information about the performance and nature of its Amazon Commerce Network.

It is alleged the company's partners program was repeatedly put forward as a key revenue earner when it was, in fact, losing money and payments were coming in the form of stock rather than cash - stock which is falling in value by the day.

The class action is based on the fact that this supposed misrepresentation artificially inflated the value of Amazon stock in advance of a $650m convertible bond offering. It is also claimed that individual directors suppressed negative analyst reports to maintain stock value before disposing of large amounts of their own holdings.

The SEC has already investigated the Amazon Commerce Network as far back as October 2000.

The problem for all businesses - not just Amazon - is just how much information investors are should receive and when. There is a real danger that marketing hype could be confused with financial promises. In marketing terms, it would be difficult to find a business that will stand up and say a division isn't as expected.

Similarly, details business transactions are not necessarily items for inclusion in press releases. If SEC rules say that listed companies must report quarterly then why should they be forced to tell the world anything at other times? As long as Amazon did not lie in the prospectus for the convertible bond offering then it is difficult to see how it has done anything wrong.

The problem here is a falling stock market and a general financial squeeze on the citizens of the US. Things have been too good for too long and people have forgotten what it is like to lose money on the stock market. Now they are turning to the courts in an attempt to get back what has been lost.