Mobile money is the provision of financial services – loans, savings, insurance and other services – through a mobile device. Innovative delivery channels such as mobile money provide new opportunities to serve clients with transformational services that better meet their needs.
The explosion in the availability of mobile phones (there are 66 subscriptions per 100 people in Africa) and the development of applications and agent networks for provision of financial services has opened up the possibility of:
- Expanding outreach to areas that are too expensive to reach with traditional channels (the cost of providing services is 80% less)
- Enabling clients to make transactions in small village shops in their communities saving time and effort that can be invested in their businesses
- Providing clients with a suite of information services, including education in financial literacy and wider issues such as health and domestic violence
- Collecting feedback from clients through SMS and automated voice-recognition technology
- Providing clients with increased safety and security as there is no need to carry cash from loan meetings.
Opportunity has started to provide mobile money services in Africa and are now reaching over 300,000 clients.
Charles Lubumba, Coffee Farmer, Uganda