intersection of microfinance, agent banking & mobile money in africa for financial inclusion

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Exploring the Intersection between

Microfinance, Agency Banking &

Mobile Money

in Africa for Financial Inclusion


Financial Inclusion

Finance is not an end by itself but a

means to help solve significant

development challenges in order to

improve the lives of people

Financial Inclusion helps to make

basic, essential services and utilities

like energy, health, education, and

water more accessible to people at

the bottom of the economic pyramid

Access to affordable financial services

helps in overcoming poverty, reducing

income disparities, and contributes

towards overall social and economic

development (GDP Growth)


Mobile Financial Services (Mobile Money)

Value is stored in electronic form in mobile

phones which can be used to purchase

airtime, transfer funds to others, make

payments and receive bulk payments (e.g:

G2P Payments)

Mobile Money Capabilities• P2P Transfer/ Remittance• Banking• Commerce• Payments• Top-ups and many more


Mobile Money in Africa

Africa has more than 800 million

mobile subscribers

Africa leads the world with 117 out

of the total 220 Mobile Money

deployments in the world

Mobile Money Services

1. Airtime Purchase

2. P2P Transfer

3. Pay Bills

4. Receive Bulk Payments

Currently, Mobile Money technology is perceived as a Money Transfer

solution

According to GSMA, 1% increase in

mobile penetration contributes to

over 6% growth in the region’s

GDP, higher than any other region

globally, and this is forecasted to

rise to over 8% by 2020


Microfinance in Africa

Low bank penetration and a very largeinformal sector, Africa is a fertile ground formicrofinance

Benefits for MFI Customers1. Access to savings, credit & insurance2. Affordable and secure services3. No collateral required4. Helps in employment & wealth creation5. Plan for lifecycle needs – retirement,

medical, education, marriage, funeral etc

Main Challenges of MFIs in Africa1. High cost of delivering services2. Security risk3. Fraud4. Lack of adequate back office capabilities


Agency Banking (Branchless Banking)

The delivery of financial services outside conventional bank

branches through the use of retail agents and information and

communications technologies to transmit transaction details.

Branchless Banking involves:

• Use of technology to identify customers and record transactions

electronically• Use of outlets such as post offices and small retailers, that act asagents for financial services providers• Offer of at least basic cash deposit and withdrawal in addition totransactional or payment services• Backing of a government-recognized, deposit-taking institution, suchas a formally licensed bank• Structuring of the above so that customers can use these bankingservices on a regular basis (available during normal business hours)and without needing to go to bank branches at all


Banks & Financial Institutions

Agent Agent Agent

Customers Customers Customers

Delivering Financial Services through Agents via Mobile Phones

Mobile Agents & Stationary Agents New sources of revenue for agents


Mobile Money

MicrofinanceAgency Banking

Financial Inclusion

P2P Transfer

Airtime Top-ups Bill Payments

Receive Bulk Payments

Savings

Micro-credit

Micro-insurance

Banking Products & ServicesEmployment &

Wealth Creation

Asset Creation &

Quality of Life

Affordable, Convenient & Secure

Intersection of Mobile Money, Microfinance & Agency Banking


Intersection of Mobile Money, Microfinance & Agency Banking

Benefits for Customers1. Cash remains within the system2. Helps in better money management3. Helps in building a corpus for future lifecycle needs

(asset creation)4. Helps in building a credit history and improving

borrowing power5. Access to wide range of financial services6. Business expansion7. Financial literacy and access to information8. Mobile Marketplace will help farmers to buy fertilizers

during off-season at a discount, get to know prices ofcommodities, helps in accepting payments for sale andmaking payments for purchases

9. Help to improve access to utilities and essentialcommodities like water, energy, education, health etce.g: automatic water dispensers (pay & use), prepaidelectric meters etc

10. Helps to lead a better quality of life


Mobile is the gateway to Financial

Inclusion


Innovative Mobile Financial Products & Services

• Cash-in/Cash-out at agent• Savings• Credit• Insurance• P2P Transfer• Bill Payments• Online Payments• Merchant Payments• Airtime Top-ups• Ticket Booking• Remittances• Cardless ATM Access• Loyalty Points• Salary Credit• Offers• Welfare Payments


mFino MFS platform ensures that

cash remains within the system

The platform connects both the

source and destination with an

integrated first mile to last mile

mobile wallet

All sources of funds can be routed

to the mobile wallet and payments

can be made using the mobile

mFino Mobile Financial Services Platform

Any Phone Any Payment Method Any Channel


Questions..???


Thank You!!

intersection of microfinance, agent banking & mobile money in africa for financial inclusion

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