CGAP encourages mobile banking in Africa

CGAP has announced the release of a new research findings aimed at encouraging telecom operators, financial institutions and governments to see the business potential in developing markets. 

Elizabeth Littlefield, CEO of CGAP notes that financial crisis, just like many economic hardships in the past, should lead to greatest innovations. The company notes that m-banking has not developed up to its full potential yet. "Mobile banking can move beyond simple transaction accounts to offer a flexible platform that will meet poor people's needs, while at the same time providing a new source of growth for providers," says Littlefield

As of today the biggest mobile banking player at the market has been M-PESA in Kenya with the service rates 45% lower as compared with other transfer services. The survey that should be released soon revealed that 83% of users say not having M-PESA would have a "large negative impact" on their lives.

According to the estimations of CGAP there are 150 million poor people around the world, who are receiving regular social welfare payments. However, only less than 25% of them are using bank accounts for this purpose. CGAP believes that usage of magnetic stripe cards linked to a bank or mobile phones could deliver great comforts to the receivers and provide additional opportunities for businesses.