The global microfinance resource center CGAP says that it is making a new four year commitment to identify, fund, research and promote technology enabled banking services for 25 million people in 20 countries.
"The brick and mortar bank branch system can only go so far. With cell phone service and a local shop handling the cash, mobile banking can reach every village and barrio in the developing world," said Littlefield. "Technology can enable us to reach millions of poor people who, until now, have been left out of the formal financial system," she added.
The commitment builds on more than five years of work on mobile banking and microfinance. In that time CGAP has advised and shaped projects with a dozen providers in Asia, Africa and Latin America and conducted in-depth policy assessments in 10 countries. From this, CGAP has published a series of white papers focusing on business models, client needs, and regulatory conditions.
The Bill and Melinda Gates Foundation has co-funded this work since 2006.
"We're optimistic and energized to tackle the challenges and unleash mobile banking's potential to transform lives. That means better understanding what poor clients need and want, helping regulators balance consumer protection with innovation, and working with phone companies and banks to create viable business models," said Littlefield.
Addressing these issues, CGAP is making a commitment to fund and advise microfinance groups, banks, and mobile phone providers with $10 million to find business models that succeed, researching the needs of poor and vulnerable people for a range of services, especially savings, and engaging telecom and banking regulators throughout the developing world.
Focus countries include: Afghanistan, Bangladesh, Brazil, DR Congo, Ecuador, Egypt, Ghana, India, Kenya, Maldives, Mexico, Mongolia, Pakistan, Philippines, Russia, Senegal, South Africa, Tanzania, Uganda, and Zambia.
Posted to the site on 24th September 2008
Posted to: www.cellular-news.com/story/33787.php