Benefits of Mobile Finance


The Mobile Finance technology can provide completely new channels for distribution of financial services enabling to reach hundreds of thousands unbanked customers and offer significant time and cost-saving opportunities to those who already use microfinance or banking services. This is an incomplete list of potential benefits which mobile finance can bring to the market participants:


For customers:
Reduced cost of peer to peer (P2P) transfers and international remittances; low-cost financial transactions; an opportunity to engage unbanked in the formal financial sector; reduced risks associated with the use of cash; m-commerce opportunities;


For mobile operators:
Increase in text messaging revenues and retention of customers; GSMA estimates that mobile payments and banking will add 15-20% of direct revenue per customer; Mobile finance services could tap a completely new pool of un-served demand among low-ARPU customers who are overwhelmingly unbanked;


For banks:
Increase in customer outreach, effective distribution of high-margin financial services and the added cash float;


For merchants:
Added business opportunities through the sale of electronic value, increased footprint, ability to accept electronic payments;


For micro-finance institutions:
Achieve greater operational efficiencies by remotely disbursing and collecting loans from borrowers via the mobile network;


For service businesses and utilities:
The ability to get payments electronically from a significant portion of population;


For Governments:
To reduce cost and simplify Government to People (G2P) payments as well as money collection services.