It might look like a strange notion to observe a significant rise in the utilization of mobile banking in developing countries where tech is centuries behind the grown world. However, according to results from a poll conducted by the World Bank, there is a significant increase in mobile banking in areas like Sub-Saharan African, Asia and the Middle East which is empowering individuals to better handle their finances and plan the future.
As a number of the weakest nations in the world, it begs the question of why and how mobile banking has come about and how it is helping to overcome financial exclusion and improve prosperity in a few of the world’s most deprived regions.
Tackling the issues of financial exclusion
With such substantial quantities of unbanked individuals, implementing an effective infrastructure to create banking readily available to the masses is a massive challenge, however the realisation that nearly everyone in these countries has a mobile telephone, also the use is increasing, has brought to light a solution in the kind of mobile banking. Where traditional banking is failing, as a result of inadequate infrastructure, lack of accessibility and expensive prices, mobile banking is bridging the gap; making it possible for individuals living in the most distant regions of the world to create and receive payments, set up savings account and more, throughout their mobile mobiles.
Although at present, many of these mobile banking services provided by mobile networks only provide basic banking servicesthey are still widely utilised by men and women. This is since it gives them easy access to banking without the have to pay massive fees to maintain the account active and physically visit their lender to make payments, withdraw money and handle their finances.
The power of mobile banking
It’s the growth of mobile banking platforms like those manufactured by Misys which are revolutionising how individuals bank now, as they offer you a user-friendly application for clients and providers alike which enable all to benefit from mobile banking.
It is this capability that is having an empowering impact on the developing world as the realisation that basic functions like online payments via mobile telephones may have a significant impact on a nation’s market. The mere act of having a bank account boosts prosperity and creates earnings within a nation. You just have to check in Kenya, who found the M-Pesa system back in 2007. This generated around $24 billion in mobile telephone transactions in 2013, which was more than half the nation ’s GNP through private and business transactions.
Mobile banking’s influence on girls
One of the other outcomes of mobile banking is the empowerment it has given to girls. Previously girls have endured more financial exclusion than men, particularly in developing countries. But the surge in mobile mobile network coverage and availability has also seen a rise in greater girls having mobile mobiles, consequently the capability and accessibility to mobile banking services. Although, this increase will not come with a caveat as in certain countries the increase in the utilization of mobile banking has risen, but the gender gap has remained stagnant. However, the significance of women being empowered by mobile banking has resulted in significantly more girls having the ability to handle their finances effectively, particularly household finances in order they can plan for the potential of their families with respect to budgeting for groceries, education as well as saving programs.
The increase in use of mobile banking services marks a positive measure in the growth of these countries, as empowering the population with the ability to basic banking services will merely serve to produce a better potential of financial inclusion.