Telefonica to Launch Mobile Banking Across Latin America

Telefónica says that it is to launch a new mobile banking (m-banking) initiative, targeting the 175 million people in the Latin Amercia region who have mobile phones but do not currently have banking access, will be delivered in partnership with the Inter-American Development Bank (IADB). The project will launch from July 2008 and be rolled out across the region.

This announcement was made by Matthew Key, CEO of Telefónica Europe, as he joined other global industry leaders, senior figures from the United Nations and international politicians at the UN Millennium Development Goals Business 'Call to Action' event in London. Mr Key also signed the Business Call to Action Declaration on behalf of Telefónica, which endorses the company as a supporter of the Development Goals and commits it to tangible development action alongside governments and other organisations.

"Building on a number of other major Telefónica initiatives aimed at reducing social and economic exclusion, the project's principal aim is to improve financial access in Latin American markets by providing an m-banking solution to some of the most vulnerable in society - those groups that do not currently have access to banks or financial services," said Matthew Key.

Telefónica executive chairman, César Alierta, stated: "At Telefónica, we believe it is essential that our activities have a positive social and economic impact on communities where we are present. We are passionately committed to ensuring that everyone can enjoy the benefits of information and communication technology. Our goal is to break down barriers that may block access to ICT - be they economic, geographic or because of disability."

Telefónica currently offers mobile communications to more that 86% of the population in 13 Latin American countries and has driven mobile penetration in the region over the last few years. Part of its commercial strategy has been to encourage take-up amongst lower socio-economic groups. Proactively decreasing access impediments and entry barriers amongst excluded groups, particularly in rural communities, has been a key element of Telefónica's approach - with the result that mobile penetration is now around 70% in the Latin American countries where Telefónica operates, as compared to rates of only 45% two years ago.

Posted to the site on 6th May 2008