Most practitioners know this, but it is important to consider that the real benefit will come as behaviour change towards a new way of saving and lending/borrowing. With better information access for savings (how much have I saved; at this rate, when will I have enough; etc.) and lending (what is the outstanding balance; when will I repay my loan if I increase repayment; etc.), "mobile money" will lead to more educated consumers. But it is also the process that will get streamlined, making it more cost-effective and applicable.
However, the most exciting potential is to re-invent savings and loan products to be more relevant to the target market. By packaging products in a different way, think of re-payments differently and interest rates/penalties/admin fees structured differently, this is where we will really see "mobile money" have a lasting effect.
1 comment:
Savings' Wallets are the easiest way of getting the consumer to bank their change or a fixed small amount every week , month etc. Whilst micro finance cuts across all the way from the bottom of the pyramid to middle income. Micro finance institutions have launched short term salary advance loans which can be disbursed and collected the mobile wallet.
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