CGAP Technology Blog posted a report yesterday on the effectiveness of “branchless banking” (mobile phone banking) in seven countries, with eight high profile m-banking providers, including M-PESA in Kenya and Tanzania.
Among the highlights: 37% of active clients now in the formal financial system through mobile phone banking were previously unbanked… Mobile phone banking is scaling faster than MFIs. This means that mobile phones will be an integral part of the future of banking in the developing world, and that the work of MFIs can complement and leverage the effectiveness of m-banking to reach more clients.
Opportunity is growing its expansion technological solutions to reach geographically remote clients. Through a grant from Credit Suisse we improve services and reduce costs of banking through the Electronic Wallet Strategy. We have been expanding mobile phone banking very successfully to our clients in Malawi, as well as Kenya. We will be able to reach millions of clients who had no previous access to formal financial services. In conference calls and in a microfinance conference breakout session, Daryl Skoog, Opportunity’s SVP of technology, reports on the innovations that are being developed.
“Bottom line: yes, the data we have shows mobile phone banking reaches the unbanked, often in significant numbers.”