M-banking works for unbanked in South Africa
Nine out of 10 low-income m-banking customers surveyed say m-banking is "not expensive" or is "inexpensive" for the benefits it offers, and 93 percent say they feel their money is as safe as with any other bank. However, findings also show most low- income people who are not customers have negative perceptions about banking and know little about mobile banking.
From Mobile Phone Banking and Low Income Customers: Evidence from South Africa, released yesterday by CGAP, the UN Foundation and Vodafone's foundation. Download the full report or see my previous post on mobile banking for more info.
M-banking remains the most powerful example of leapfrogging that I know of. It's actually a double leapfrog - from landlines to cell phones, and from traditional banks to virtual wallets.
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M-everything could be coming soon if Google's plans work out.
"With nearly three billion mobile-phone subscribers in the world expected by the end of 2007, Google sees great potential for extending its presence throughout the world using the mobile platform, said Deep Nishar, director of product management for Google."
http://news.zdnet.co.uk/communications/0,1000000085,39284914,00.htm
Looks like Google are now going for the bottom of the pyramid.
Posted by: Michael Saunby | Nov 29, 2006 11:48:52 AM
Those interested in M-banking need to be aware that existing systems directly, or indirectly, use banking and card processing infrastructure. There is an alternative on the horizon that replaces these infrastructures all together and truly allows low-cost payment solutions. This concept also is a technical implementation of the economic structure of micro-loans for developing countries (Nobel Prize in Economics). This M-banking solution does not require a banking network infrastructure and works directly with mobile wireless networks. More can be found at http://
Posted by: R. Ellington Smith | Jan 10, 2007 11:03:40 PM
Here's our article on the subject: http://www.mitpressjournals.org/doi/abs/10.1162/itgg.2007.2.1-2.82
Comments are welcome!
Posted by: Shamika Ravi | Sep 1, 2008 1:13:24 AM