Technology has been changing behaviour of people. Many are showing significance reliance on the Internet – mobile network in particular – more than ever. At the same time, technological innovations are led by such behavioural changes. Indeed, successful innovations need more than just insights. They are reflecting how people use technology, and thus change their habits.
Finance services industry is also evolving the way they are doing business, as many customers are turning online for their daily activities such as buying stocks, paying bills, or managing their savings and investments, etc. But more often than not, there is an increasing number of transactions are going peer-to-peer.
While these changes indicate the digital transformation along the existing fiscal regime, it also helps drive financial inclusiveness. World Bank has suggested that about 1.7 billion adults are without an account at a financial institution around the world.
“Because account ownership is nearly universal in high-income economies, virtually all unbanked adults live in developing economies,” the World Bank says. It is echoed by a Mastercard’s report published last year, showing that 15 countries account for over 60% of the global unbanked population, where 607 million people have a mobile phone, but do not yet have a bank account. Advertisement Boosting Financial Inclusiveness for the “Unbanked”
In the absence of proper banking services, people would usually go to some informal providers, including local lenders or unlicensed remittance services. While these services may allow these people – many are from low-income family – to enjoy some kind of financial services, they are exposed to serious risks without any proper legal production.
However, their easy access to mobile connection paves the way to the benefits of financial inclusion for them. As they go digital with their smart devices, these people can start building their financial foundation with the proper support of technology – that’s the mobile money.
Mobile money is not rocket science. As technology never stops to advance and improve user experience, this industry continues to boom. According to GSMA’s State of the Industry Report on
Mobile Money 2019, the mobile money industry had over a billion registered users, with close to US$2 billion in daily transactions.
“Economies are becoming increasingly dependent on digital technology, bringing to light the central role of mobile money in harnessing digital finance for sustainable development,” Mats Granryd, GSMA Director General, writes in the report. “Mobile money is accelerating progress towards the Sustainable Development Goals and […]
