Instrumented Interconnecteds Intelligent

Tony Mwai, Country General Manager, IBM East Africa

By Tony Mwai

Ten years ago, if workers in Kenya wanted to send money to relatives across the country, they had two options – either pay a courier to take their wages back to their village or travel themselves, often spending a hefty portion of the wages on bus fare and then losing a day’s pay.

Today, in a just under a second, over 14 million Kenyans can send and receive money to each other in whichever part of the country they are, all thanks to mobile money transfer solutions.

Over the last five years, more than $16 billion has moved between phones in this country, indicating the untapped demand for access to reliable and affordable financial services in the palm of Kenyans. 

With similar stories being replicated across the continent, it is not far-fetched to say that over the last five years, mobile financial solutions have allowed Africa to leapfrog its developmental hurdles to become one of the most advanced adopters of mobile money solutions globally.

Mobile banking has taken off in many African countries, but especially where it can take a significant amount of time and money to get to the nearest bank branch office. Furthermore, the cost of traditional banking in Africa is high for many citizens and banking regulations are strict. For example, many banks require proof of regular income before an account can be opened – preventing many people from obtaining and maintaining bank accounts.

The high growth and penetration rates of mobile telephony inAfricaare transforming cell phones into “mini” banks. Mobile banking is becoming an increasingly affordable and cost effective means of bringing large portions of the population, heretofore excluded, into the financial services market.

According to the World Bank, the vast majority of African families – close to 80 percent – do not have formal bank accounts. Mobile phones, however, are almost everywhere. By some estimates mobile penetration in South Africa alone is at about 90 percent.

In developing countries with a low banking and high mobile phone penetration, mobile wallets can bring basic payment services to those under, as well as un-served, in banking. Mobile banking provides a powerful way to deliver services to citizens who have a cell phone but no bank account – breaking down geographical constraints and offering consumer advantages such as immediacy, security and efficiency.

Often starting with money transfers, mobile banking services become more sophisticated over time to include paying for bills and goods, pre-paid debit cards, ATM withdrawals and salary disbursements.

As mobile banking continues to rise in popularity, financial institutions will have to focus on making the consumer transition from mobile, to branch, to call center, as seamless as possible, which can be a difficult proposition. And with so much competition and no universally-accepted delivery model, how can banks compete for the individual consumer?

For starters, mobile banking technologies that provide a strong return to financial institutions enable businesses to address the security concerns of consumers. New business models are also emerging that address consumer needs, while delivering banking services through mobile money platforms.

Furthermore, partnerships between banks, financial institutions, microfinance institutions and the mobile industry are emerging to support a single integrated framework to cut costs in order to provide consumers with the convenience of banking from home, the farm or other remote areas.

An effective mobile wallet solution can help banks grow and generate new sources of revenue, help merchants reduce payment processing costs and fraud risk, and make the payment process safer, faster and more convenient for consumers.

Customer account information stored directly and securely in the cloud, instead of shared over the phone and passed into the POS terminal, can enhance the level of security as well as reduce the risk of fraud. The cloud-based approach gives consumers peace of mind that their information is private and their transactions are safe. In addition, retailers don’t need to contend with the cost and complexity of maintaining PCI compliance for cloud-based mobile wallet transactions.

As banks are recognizing the potential of reaching millions of prospective new customers, the popularity of mobile banking in Africa could have implications beyond linking the non-banking public to financial networks.

Not only is mobile banking filling the gap in the financial services market, it is enabling a growing number of people to access financial services for the first time, enlivening the entrepreneurial spirit to drive economic growth throughout the continent.

Bookmark and Share

Previous post

Next post

60 Comments
 
March 29, 2014
6:02 am

This site is known as a stroll-by means of for all of the info you wanted about this and didn


Posted by: Telecharger Pokemon X et Y Rom
 
March 28, 2014
8:01 pm

Permit us bear in mind “tailgating” as we now realize it did not exist when we performed in city. The tailgate social gathering was fundamentally exclusively fluid and it happened proper there during the stands. It seemed like each individual other individual would, by means of some suggests, sneak liquor in the sport. The liquor bottles which littered the stands following a activity would stagger the imagination.


Posted by: vanboy
 
March 13, 2014
11:36 pm

After I initially commented I appear to have clicked the -Notify me when new
comments are added- checkbox and now each time a comment is added
I receive 4 emails with the exact same comment. Perhaps there
is a means you are able to remove me from that service? Appreciate it!


Posted by: Visalus
 
February 24, 2014
6:10 am

Nice post. I learn something new and challenging on websites
I stumbleupon every day. It’s always interesting to read through articles from other authors and practice a little something from their sites.


Posted by: visi
 
February 24, 2014
2:21 am

If some one desires expert view on the topic of
blogging after that i recommend him/her to go to see this webpage, Keep up the nice job.


Posted by: Younique
 
February 22, 2014
5:30 pm

Hi there to every body, it’s my first visit of this webpage; this webpage consists of remarkable and really fine stuff in favor of readers.


Posted by: Forever Living Reviews
 
February 22, 2014
5:03 pm

Wow that was strange. I just wrote an incredibly long comment
but after I clicked submit my comment didn’t appear.
Grrrr… well I’m not writing all that over
again. Regardless, just wanted to say great blog!


Posted by: Ariix
 
February 22, 2014
4:21 pm

Hey just wanted to give you a quick heads up. The words in your post seem to be running off the screen in Chrome.

I’m not sure if this is a formatting issue or something to do with internet browser compatibility but I thought I’d post to let you know.
The style and design look great though! Hope you get the
issue resolved soon. Many thanks


Posted by: Lightyear Wireless Reviews
 
February 22, 2014
4:12 pm

Hey! I know this is somewhat off-topic however I needed to ask.
Does managing a well-established blog like yours take a large amount of work?
I’m completely new to blogging however I do write in my journal every
day. I’d like to start a blog so I can easily share
my own experience and views online. Please let me know if
you have any ideas or tips for new aspiring blog
owners. Thankyou!


Posted by: Lifepharm Global
 
February 22, 2014
3:59 pm

Generally I do not read article on blogs, but I would like to
say that this write-up very compelled me to take a look at and do so!
Your writing style has been amazed me. Thank you, quite
great article.


Posted by: Tastefully Simple
 
February 22, 2014
2:14 pm

Right here is the right website for anybody who wishes
to understand this topic. You know a whole lot its almost tough to argue
with you (not that I actually would want to…HaHa).
You definitely put a fresh spin on a topic which has been written about
for many years. Wonderful stuff, just great!


Posted by: Kyani
 
February 22, 2014
1:10 pm

Hi there! This post could not be written much better! Looking through this post reminds me of my
previous roommate! He always kept talking about this.
I will send this information to him. Pretty sure he will
have a very good read. I appreciate you for sharing!


Posted by: lead generation online
 
February 22, 2014
1:04 pm

I have been browsing online more than 3 hours these days, yet I never discovered any fascinating
article like yours. It is lovely worth sufficient
for me. In my opinion, if all website owners and bloggers
made excellent content as you did, the net might be a lot more helpful than ever before.


Posted by: Selling on eBay Tips Best Sellers on eBay Best Sellers on eBay
 
February 22, 2014
1:00 pm

Everyone loves what you guys are usually up too.
This type of clever work and exposure! Keep up the terrific works guys I’ve added
you guys to my personal blogroll.


Posted by: network Marketing online
 
February 22, 2014
12:43 pm

It’s genuinely very complicated in this active
life to listen news on TV, therefore I just use world wide web for that purpose,
and obtain the latest news.


Posted by: www.youtube.com
 
February 22, 2014
12:30 pm

What’s up, the whole thing is going nicely here and ofcourse every one is sharing data, that’s really good, keep up writing.


Posted by: how to make money with ebay
 
February 22, 2014
12:12 pm

I have read so many articles or reviews regarding the blogger lovers except this article
is truly a fastidious post, keep it up.


Posted by: www.youtube.com
 
February 22, 2014
12:11 pm

Does your website have a contact page? I’m having trouble locating it but, I’d like to shoot you an e-mail.
I’ve got some creative ideas for your blog you might be interested in hearing.

Either way, great blog and I look forward to seeing it grow
over time.


Posted by: How to make money with eBay
 
February 21, 2014
2:06 am

I’m not sure why but this website is loading
extremely slow for me. Is anyone else having this problem
or is it a issue on my end? I’ll check back later and see if the problem still exists.


Posted by: Ignite energy
 
February 20, 2014
6:20 pm

Hi! I could have sworn I’ve been to this website before but after checking through some of the post
I realized it’s new to me. Anyhow, I’m definitely happy I found it and I’ll be book-marking and checking back often!


Posted by: fuller brush reviews
 
February 20, 2014
5:56 pm

Hi there everyone, it’s my first pay a visit at this web page, and article is in fact fruitful for me, keep
up posting such posts.


Posted by: Heritage Makers
 
February 19, 2014
2:23 pm

Good post. I will be facing some of these issues as well..


Posted by: http://www.youtube.com/
 
February 19, 2014
1:55 pm

My partner and I stumbled over here from a different web address
and thought I might as well check things out. I like what
I see so i am just following you. Look forward to exploring your web
page repeatedly.


Posted by: zurvita
 
February 19, 2014
1:35 pm

I’m not that much of a internet reader to be honest but your blogs
really nice, keep it up! I’ll go ahead and bookmark your website to come back down the road.

All the best


Posted by: univera Univera
 
February 17, 2014
2:29 pm

It’s really a nice and helpful piece of info.
I am happy that you shared this helpful info with us.
Please keep us informed like this. Thanks for sharing.


Posted by: Talk Fusion
 
February 5, 2014
3:32 pm

Its like you read my mind! You appear to know so much about this, like you
wrote the book in it or something. I think that you could do with some pics to drive the
message home a bit, but other than that, this is fantastic blog.
A great read. I will definitely be back.


Posted by: www.youtube.com
 
February 5, 2014
2:51 pm

Great goods from you, man. I’ve take into account your stuff prior to and you are just extremely wonderful.
I actually like what you’ve bought right here, certainly like what
you’re saying and the way through which you say it. You are making it
enjoyable and you still care for to keep it sensible.
I can not wait to read much more from you.
This is actually a wonderful site.


Posted by: miessence
 
February 5, 2014
2:32 pm

Hi there, its fastidious paragraph on the topic of media print, we all understand media is a
enormous source of information.


Posted by: javita
 
February 1, 2014
2:54 am

Hey there! I just wanted to ask if you ever
have any trouble with hackers? My last blog (wordpress) was hacked and I
ended up losing several weeks of hard work due to no back
up. Do you have any solutions to stop hackers?


Posted by: how to generate leads
 
January 28, 2014
8:17 pm

Hi to every one, it’s actually a pleasant for me to visit this website,
it consists of useful Information.


Posted by: how To build MLM business
 
January 28, 2014
8:09 pm

Hi, I wish for to subscribe for this web site
to obtain hottest updates, so where can i do it please help.


Posted by: four personality types
 
January 28, 2014
3:08 pm

Pretty! This was a really wonderful article. Thanks for providing
this info.


Posted by: business tips
 
January 28, 2014
3:00 pm

These are really fantastic ideas in on the topic of blogging.
You have touched some nice things here. Any way keep up wrinting.


Posted by: success in mlm
 
January 28, 2014
2:54 pm

Greetings! I know this is kinda off topic however , I’d figured I’d ask.
Would you be interested in trading links or maybe guest authoring a
blog post or vice-versa? My site addresses a lot of the same
subjects as yours and I believe we could greatly benefit from each other.

If you happen to be interested feel free to shoot me an email.

I look forward to hearing from you! Awesome blog by the way!


Posted by: Socail media
 
January 28, 2014
2:33 pm

For latest information you have to pay a quick visit world wide web and on web
I found this web page as a most excellent website for newest updates.


Posted by: mlm marketing tips
 
January 23, 2014
5:40 pm

Hi to all, the contents present at this site are
in fact remarkable for people knowledge, well, keep up the good work fellows.


Posted by: Xyngular
 
January 22, 2014
3:20 am

Howdy! This blog post could not be written much better! Reading through this article
reminds me of my previous roommate! He always kept talking about this.

I’ll send this article to him. Pretty sure he’ll have a very good read.
Many thanks for sharing!


Posted by: http://www.youtube.com/
 
January 22, 2014
2:58 am

Hi! I know this is kinda off topic but I’d figured I’d ask.

Would you be interested in trading links or maybe guest authoring a blog post
or vice-versa? My site discusses a lot of the same subjects as yours and I feel we could greatly benefit from each other.
If you happen to be interested feel free to send me an email.
I look forward to hearing from you! Terrific blog
by the way!


Posted by: Ludaxx
 
January 22, 2014
2:52 am

Hello there! This is kind of off topic but I need some guidance from an established blog.
Is it very hard to set up your own blog? I’m not very techincal but I can figure things out pretty
quick. I’m thinking about creating my own but I’m not sure where to
start. Do you have any points or suggestions? Cheers


Posted by: www.youtube.com
 
January 22, 2014
2:49 am

Good info. Lucky me I recently found your website by chance (stumbleupon).
I’ve bookmarked it for later!


Posted by: http://www.youtube.com
 
January 22, 2014
2:43 am

An outstanding share! I’ve just forwarded this onto a coworker who had been doing a little
research on this. And he actually ordered me dinner due to the fact that I found it for
him… lol. So let me reword this…. Thanks for the meal!!
But yeah, thanx for spending the time to talk about this topic here on
your web site.


Posted by: Lifewave Reviews
 
January 18, 2014
9:42 pm

The courier service software is very useful for the professionals of Courier services; the software provides all record keeping works to be done automatically with small knowledge of computer.


Posted by: Software For Couriers
 
January 13, 2014
1:40 pm

This site certainly has all the info I wanted concerning this
subject and didn’t know who to ask.


Posted by: http://www.youtube.com
 
January 12, 2014
9:07 pm

Excellent, what a website it is! This webpage presents helpful information to
us, keep it up.


Posted by: do people really make money on ebay
 
January 12, 2014
4:24 am

I always used to read post in news papers but now as I am a user of internet therefore from now
I am using net for content, thanks to web.


Posted by: mlm business plan
 
January 11, 2014
12:49 pm

It’s an awesome piece of writing for all the web visitors; they will
take benefit from it I am sure.


Posted by: mlm leads
 
December 3, 2013
3:34 am

Hello i am kavin, its my first occasion to commenting anywhere, when i read this piece of writing i thought i could also create
comment due to this good post.


Posted by: make money using youtube
 
August 15, 2013
6:21 am

Whats Going down i’m new to this, I stumbled upon this I’ve found It positively helpful and it has helped me out loads. I am hoping to contribute & aid different customers like its helped me. Great job.


Posted by: custom jewelry
 
August 6, 2013
11:17 pm

I’m also commenting to let you understand what a fabulous encounter my friend’s girl went through viewing your blog. She picked up plenty of things, most notably what it is like to possess a great giving nature to have other individuals without difficulty know just exactly specified problematic things. You truly surpassed my expectations. Thanks for delivering the priceless, trustworthy, informative and in addition fun guidance on the topic to Emily.


Posted by: automobile flags
 
August 4, 2013
1:36 pm

Whats Going down i am new to this, I stumbled upon this I have found It positively useful and it has helped me out loads. I’m hoping to give a contribution & aid other customers like its aided me. Good job.


Posted by: Computer Technician
 
August 3, 2013
8:00 am

Hiya, I am really glad I’ve found this info. Today bloggers publish just about gossips and net and this is actually irritating. A good web site with exciting content, that is what I need. Thank you for keeping this web site, I will be visiting it. Do you do newsletters? Cant find it.


Posted by: Health Center
 
August 1, 2013
9:16 pm

I¡¦m now not positive where you’re getting your info, however good topic. I must spend some time studying much more or understanding more. Thank you for magnificent information I used to be searching for this info for my mission.


Posted by: education grants employment
 
July 31, 2013
9:07 pm

whoah this weblog is fantastic i really like reading your posts. Stay up the good paintings! You already know, lots of persons are searching around for this info, you can aid them greatly.


Posted by: beauty suggestions to
 
July 31, 2013
7:55 pm

Wow, wonderful blog format! How lengthy have you ever been blogging for? you make running a blog look easy. The total look of your site is excellent, let alone the content!


Posted by: education education grants
 
July 31, 2013
9:11 am

hello there and thank you for your info – I’ve definitely picked up something new from right here. I did however expertise some technical issues using this site, as I experienced to reload the web site a lot of times previous to I could get it to load correctly. I had been wondering if your web host is OK? Not that I’m complaining, but slow loading instances times will sometimes affect your placement in google and can damage your high quality score if advertising and marketing with Adwords. Well I’m adding this RSS to my e-mail and can look out for a lot more of your respective interesting content. Make sure you update this again soon..


Posted by: home with regard
 
July 29, 2013
5:53 am

Thanks a lot for giving everyone remarkably marvellous chance to check tips from this website. It is always very excellent and as well , stuffed with fun for me personally and my office colleagues to visit the blog at the least 3 times weekly to find out the newest secrets you will have. Not to mention, I am just usually fascinated with your attractive inspiring ideas served by you. Certain 3 points in this article are undeniably the best we have all had.


Posted by: foley food mill
 
July 27, 2013
8:18 am

Aw, this was a very nice post. In concept I want to put in writing like this moreover � taking time and precise effort to make an excellent article however what can I say I procrastinate alot and on no account appear to get one thing done.


Posted by: Vada Mohrlock
 
July 25, 2013
3:24 pm

This website online is really a walk-via for all the information you needed about this and didn�t know who to ask. Glimpse here, and you�ll undoubtedly discover it.


Posted by: Greg Honahnie
 
July 25, 2013
3:10 am

Oh my goodness! an amazing article dude. Thanks However I’m experiencing difficulty with ur rss . Don�t know why Unable to subscribe to it. Is there anybody getting similar rss problem? Anybody who is aware of kindly respond. Thnkx


Posted by: Winford Pitz
 
October 18, 2012
5:45 am

If mobile banking moves closer to “mobile money platforms” such as the cloud, how can a customer orientate transactions well enough with just a basic Nokia phone in the bush? Is there an expectation that everyone in Kenya will gradually own a smartphone with internet browsing capabilities?


Posted by: Graeme Dunn
 
3 Trackbacks
 
December 14, 2012
10:31 am

[...] new product lines such as mobile banking and mortgage products is pushing banks like ours to become more nimble and technology dependant in [...]


Posted by: Managing the Big Data Challenge in Ghana’s Banking Sector « A Smarter Planet Blog
 
December 13, 2012
8:56 am

[...] mobile to foster economic development, competitiveness, productivity, and growth. In regions like Africa, Latin America and India, more than half of these residents are using the web do so exclusively [...]


Posted by: Mobile Computing: It’s How to Get Ahead « A Smarter Planet Blog
 
October 18, 2012
11:32 pm

[...] Kenya wanted to send money to relatives across the country, they had two options – either pay a.asmarterplanet.com/blog/2012/10/20126.htmlTweetPin It This entry was posted in RSS Feeds. Bookmark the permalink.← Zambia welcomes fourth [...]


Posted by: Leveraging Africa's Growing Mobile Banking Business « A Smarter …
 
Post a Comment