Microfinance has given millions of people access to financial services for the first time. Microfinance refers to all financial services that help poor people better manage their lives and their money, and includes insurance, savings and microcredit.
Microcredit involves giving small loans to poor individuals for a range of purposes, and can be seen as a narrower subset of microfinance. As such, mobile money providers and microfinance institutions are starting to work together to improve the quality and range of financial services available.
It’s increasingly clear that assets and capabilities of microfinance institutions and service providers are complementary, and range from distributing cash and electronic value using MFI infrastructure to disbursing microloans and accepting repayments on mobile systems.
This area highlights articles, blog posts and other resources that operators may find useful when researching this topic.
1. WHAT ARE THE VARIOUS ROLES THAT MFIS CAN PLAY IN MOBILE MONEY?
Microfinance: From Manual to Mobile Enabled
Author : SMART
Microfinance and Mobile Banking: The Story So Far
Author : CGAP
This Focus Note does two things: explore the various roles that MFIs can play in mobile money and explore the benefits MFIs and their customers could gain from with mobile money.
Beyond Payments – Next Generation Mobile Banking for the Masses
Author : Planet Finance and Oliver Wyman
This resource studies distribution strategies and second generation mobile microfinance products, exploring the power of mobile technology in providing low income consumers financial products beyond simple mobile payments.
2. OTHER RESOURCES
Accelerating Financial Inclusion through Innovative Channels
Author : Amitabh Saxena
Discover ten challenges holding MFIs back from deploying alternative channels. The article includes a roadmap for MFIs—and broader stakeholders—aiming to overcome these hurdles.
Reframing Microfinance: Enabling Small Savings and Payments, Everywhere
Author : Ignacio Mas
How do we deliver sustainable savings services to poor people? The key elements in the savings discussion are described here, as well as an analysis of four key elements that underpin the viability of micro-savings offerings.
Mobile Banking – The Key To Building Credit History For The Poor?
Author : USAID
Mobile transaction data may potentially help this population establish a formal credit history, help lenders more accurately evaluate credit risk, and lead to increased access to financial services for the poor.
Related BLOG POSTS
- Mobile Money for the Unbanked
M-Shwari: Mobile Money Savings & Loans
Safaricom and Commercial Bank of Africa launched M-Shwari last week, a credit and savings product for M-PESA customers. Customers can apply for a quick approval loan, open a bank account and move funds from the wallet over to an interest bearing bank account. ... - Mobile Money for the Unbanked
In Kenya, microfinance is going mobile - Part 2
This blog has been written with the support of Tonny Omwansa, co-author of Money, Real Quick: The story of M-Pesa. We want to thank David James, CEO of Musoni and Sharon Langevin, Project Director of FrontlineSMS: Credit. Read Part 1 here. FrontlineSMS ... - Mobile Money for the Unbanked
In Kenya, microfinance is going mobile - Part 1
This blog has been written with the support of Tonny Omwansa, co-author of Money, Real Quick: The story of M-Pesa. We want to thank David James, CEO of Musoni and Sharon Langevin, Project Director of FrontlineSMS:Credit. Read Part 2 here. A lot has been w... - Mobile Money for the Unbanked
Is there a demand for mobile loans?
The following is a guest post by Elio Vitucci, Managing Director of Experian MicroAnalytics, as part of the series on airtime based credit scoring. Also read part 1 and part 2 of the series. According to a recent McKinsey Publication, “new alternative dat... - Mobile Money for the Unbanked
Extending Financial Services using Mobile Based Consumer Scoring
The following is a guest post by Jonathan Hakim, President & CEO of Cignifi, as part of the series on airtime based credit scoring. Also read part 1 and part 3 of the series. The Cignifi behavior-based scoring platform leverages behavioral analytics and... - Mobile Money for the Unbanked
Airtime based credit scoring: Can it drive innovative loan products for mobile money?
A customers’ pattern of airtime top ups is being used to determine the credit-worthiness of a prospective borrower and approve/deny loans. Will this technique facilitate the development of innovative micro-loans via the mobile channel? Is the data truly ... - Mobile Money for the Unbanked
The Advent of Mobile Financial Services in Agriculture
As the global population continues to grow – it is expected to reach more than 9 billion by 2050. It will require a 70% increase in food production above current levels. Most of this increased yield will have to be achieved in less developed countries (LDC... - Mobile Money for the Unbanked
FrontlineSMS:Credit: Targeting MFIs and SMEs to maximise the social impact of mobile money
We’ve written previously in our blog about the intersection of mobile money and Microfinance and about innovative microfinance products riding on the rails of mobile money. Last week, Nathan Wyeth, Project Director of FrontlineSMS:Credit, visited our offic... - Mobile Money for the Unbanked
Interview with Esther Duflo, co-author of “Poor Economics” Part 2.
In light of the recent publication of “Poor Economics”, the new book by Abhijit V. Banerjee and Esther Duflo, MMU caught up with Dr. Duflo to discuss some relevant themes to help our readers understand the broader impact of mobile financial services in the... - Mobile Money for the Unbanked
Interview with Dr. Esther Duflo, co-author of “Poor Economics”
In light of the recent publication of “Poor Economics”, the new book by Abhijit V. Banerjee and Esther Duflo, MMU caught up with Dr. Duflo to discuss some relevant themes to help our readers understand the broader impact of mobile financial services in the... - Mobile Money for the Unbanked
PlaNet Finance and Oliver Wyman publish report on mobile microfinance
PlaNet Finance and Oliver Wyman launch a report of mobile microfinance during Mobile World Congress 2011. The report, “Beyond Payments – Next Generation Mobile Banking for the Masses” is the result of a joint effort and was funded by the Bill and Mel... - Mobile Money for the Unbanked
Microfinance 2.0
Earlier this year, we discussed the potential of the intersection of microfinance and mobile money. Microfinance is the provision of financial services to the unbanked and can include access to credit and savings services as well as more advanced products su... - Mobile Money for the Unbanked
Beyond P2P Transfers
It used to be that mobile money was synonymous with domestic p2p transfers – the “killer app” that propelled Safaricom’s M-PESA to such extraordinary success. It was clear that Safaricom had tapped a rich vein of latent demand for a safe and affordable... - Mobile Money for the Unbanked
Why and How to Engage Microfinance Institutions for your Mobile Money Deployment
This is a guest post, from Amitabh Saxena. Amitabh started the Alternative Channels workstream at ACCION in 2006 after spending several years in developing credit card products for Capital One’s Innovation Center. He has worked in strategy and implementat... - Mobile Money for the Unbanked
The Intersection of Mobile Money and Microfinance
Over the past three decades, microfinance has given millions of people access to financial services for the first time. As such, it’s exciting to watch how mobile money providers and microfinance institutions are starting to work together to improve further ... - Mobile Money for the Unbanked
Reframing Microfinance: Enabling Small Savings and Payments, Everywhere
I’m pleased to share an article recently written by Ignacio Mas, Deputy Director, Financial Services for the Poor at the Bill & Melinda Gates Foundation. The Gates Foundation are supporters of the MMU Programme and similarly strong advocates for savings....
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