Financial Inclusion

Transforming lives with Mobile Money

Transforming lives – Altering the way financial transactions are performed by making mobile money the primary way people to transfer money and pay for goods and services-from sweets to school fees. Mobile money is powered by people for people and their day to day financial transaction needs which in turns facilitate any country growth and strength.

 

Leaders of Todays Payment Market

FinTech’s are leading the show with all the latest technologies and use cases to make it easy on other hands banks are still confused and asking them self what is it. Latest technologies which are no longer science fiction or study material for phd students i.e. Artificial Intelligence. Artificial intelligence and its subdomains like machine learning, neural networks, deep learning and data-science are the biggest tools taking this to another level. Customer experience is getting richer and richer day by day.

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Watch the full Video at -:      Transforming lives with Mobile Money

 

According to the secondary market research agency yStats, mobile payment is the growth leader of the online and the total payments market, with further growth expected following the launches of varying mobile payment solutions. (For further details refer to the last Article which was focused on this “Rush Hour Mobile Payments“. An ING Group survey has discovered that throughout the UK and Europe consumers are using mobile to pay and make transfers more frequently, and cash may lose out which is already a piece of good news for all those players who are waiting for their share of this hot cake “Mobile Payments” under enabler as Mobile Money.

Technology is a friend/ helper not as a tester or rocket science; MFS product use and accessibility need to be simple for people to make them comfortable and pull out maximum benefits especially for unbanked who have not seen the real MFS. Today’s consumer expects a seamless mobile payment experience; failing to meet those expectations can be devastating to a brand, idea, innovation and eventually the payments industry.

Africa is the land/Home of Mobile Money and Mobile is the most frequently used and widely acceptable technological device than any other. Financial services are a key need for most people due to almost less negligible banking penetration and it makes sense to enable Mobile devices with a set of financial tools and features as mobile handset penetration is more than 10 to 15 times higher than banking. Finance sector can take advantages of Mobile devices to penetrate all classes of society so the birth of Mobile Money

Mobile money mainly is for financial inclusion where services can be given to those who are unbanked and shy away from banking halls due to very stringent KYC requirements. This specific category wants to access money with little ease but availability as per their needs matter the most.

The second most important factor is the fee charged for the transaction as mobile money is transaction based business not deposit based like I have given the same example many times in past. Banks make money when money is left and forgotten in the account by the customer but in the mobile money business, the service provider makes money when its transacted. Countries like India where people have seen their grand grandfather, to grandfather to father and self that they go to the bank and do all business for free but now if anyone asks for a small fee for their cash handling people raise their eyebrows. It’s changing though and will change fully in some time.

Screen Shot 2016-01-13 at 12.32.33 PMWatch the full Video at -:      Transforming lives with Mobile Money

Acceptability of Mobile Money under Mobile Financial Services was the biggest breakthrough. Role of Mobile Money Agent is crucial and very critical for the success of service. Who can be an agent, how agent distribution needs to be plotted on the city/country map is also very very critical. The success of the mobile money system will really rely on a coordinated effort by all to deliver a system that speaks to the needs of the people and where no one is excluded because we are approaching a future where everything will be interconnected and where a smartphone will simplify people’s lives in ways unimaginable.

 

Points to Note:

All credits if any remains on the original contributor only. In the post above, I covered all the basics around Mobile Financial services and Mobile Money and the importance of the quality network (Agents, business and distribution). In the next upcoming post will talk about implementation, usage and practice experience for markets.

 

Books + Other readings Referred

  • Research through open internet, news portals, white papers, notes made at knowledge sharing sessions and from live conferences & lectures.
  • Lab and hands-on experience of  @AILabPage (Self-taught learners group) members.

 

Feedback & Further Question

Do you have any questions about AI, Machine Learning, Telecom billing/charging, Data Science or Big Data Analytics? Leave a question in a comment section or ask via email. Will try best to answer it.

 

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Conclusion  Opportunities are countless; one who seizes them first gets the upper hand. Thanks to regulation and central bank support through the Ministry of Innovation. Financial inclusion or Finclusion is getting driven the way it should be. Simply ensuring that all consumers have access to basic banking services or operative wallet/account will give a huge success for Finclusion. Electronic systems offer promising automatic auditing ability to governmental institutions. Critics, therefore expect resistance from the government in establishing financial confidentiality. The U.S. government has already unsuccessfully attempted to force a privacy-intruding “Clipper chip” onto the industry. In France, cryptography is completely forbidden by the law. Obviously, this is currently an area of heated debate.

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