Mobile Money Platforms Bring Financial Inclusion to the Poor
Mobile devices may finally enable the world’s poor to reach financial inclusion, according to Juniper Research’s recent report, Mobile Financial Services: Developing Markets 2015-2020. The report estimates that 283 million people will be using these services by 2020.
For the first time, people in developing regions who have not had access to banks are being introduced to mobile money platforms, which allow them to send money and receive provisions and services through mobile money transactions, including loans, savings and insurance.
One of the reasons mobile devices have been able to boost financial development is that consumers can register for financial services on their mobile devices. Previously, people would have to travel long distances to visit a major city to register with a bank. This was a major impediment for people who live in countries with poor transport systems.
Mobile financing has also helped Mobile Financial Institutions (MFIs) by providing cheaper start-up costs. Until recently, MFIs found it very difficult to earn a profit in developing nations, so they were reluctant to do business in these regions.