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MOBILE MONEY FOR THE UNBANKED SMARTPHONES & MOBILE MONEY: THE NEXT GENERATION OF DIGITAL FINANCIAL INCLUSION
The Road Ahead
W hile we are optimistic about the greater accessibility of mobile internet and smartphones in developing markets, we recog-
nise there are considerable challenges ahead with regards to what this could mean for mobile financial services.
For one, it may be years before mobile data access and smartphones reach the ‘last billion’. Material gaps remain in mobile penetra-
tion and coverage, particularly in markets where financial exclusion is most acute. According to GSMA Mobile for Development Impact,
total mobile unique subscriber penetration is still less than 50% of the population on average in emerging markets, in contrast to the
commonly cited, but misleading, SIM card penetration of 90%. It is no surprise that rural communities are most frequently left behind.
15
Access to shared devices at the household or community level is also common, thus limiting mobile financial services uptake.
Secondly, mobile content today lacks relevance to developing markets. The GSMA’s Digital Inclusion initiative surveyed operator groups
on the barriers to the take-up of mobile data in Africa, Asia and Latin America. Initial feedback suggests that the lack of availability of
16
local content is a key barrier, along with the total cost of access and literacy. The development of local content that takes into account
language and local priorities, for example, will be necessary to propel the shift to more high-impact mobile financial services. Customisa-
tion is, in fact, what makes new mobile product development so exciting.
Thirdly, mobile data access does not imply mobile money will take off. Struggling mobile money deployments today would not cite tech-
nology as a top barrier to adoption. Having access to the technology is a necessary pre-condition, but is clearly not enough to suggest
that a particular outcome will materialise. A compelling value proposition for consumers, a strong business case for each of the players
along the value chain, and an enabling regulatory environment, at minimum, are necessary to drive mobile money uptake and usage.
Notwithstanding the challenges ahead, we will surely witness an exponential growth in demand for mobile broadband, and mobile
operators are likely to benefit from this rising demand. Whether or not they can also maintain a competitive edge in mobile money provi-
sion will vary across markets. Investing in scaling mobile money today and generating the trust of customers can help providers position
themselves to take advantage of tomorrow’s mobile internet opportunity.
15. GSMA Mobile for Development Impact, Mobile Platform Wars, February 2014
16. Ibid
11
The Road Ahead
W hile we are optimistic about the greater accessibility of mobile internet and smartphones in developing markets, we recog-
nise there are considerable challenges ahead with regards to what this could mean for mobile financial services.
For one, it may be years before mobile data access and smartphones reach the ‘last billion’. Material gaps remain in mobile penetra-
tion and coverage, particularly in markets where financial exclusion is most acute. According to GSMA Mobile for Development Impact,
total mobile unique subscriber penetration is still less than 50% of the population on average in emerging markets, in contrast to the
commonly cited, but misleading, SIM card penetration of 90%. It is no surprise that rural communities are most frequently left behind.
15
Access to shared devices at the household or community level is also common, thus limiting mobile financial services uptake.
Secondly, mobile content today lacks relevance to developing markets. The GSMA’s Digital Inclusion initiative surveyed operator groups
on the barriers to the take-up of mobile data in Africa, Asia and Latin America. Initial feedback suggests that the lack of availability of
16
local content is a key barrier, along with the total cost of access and literacy. The development of local content that takes into account
language and local priorities, for example, will be necessary to propel the shift to more high-impact mobile financial services. Customisa-
tion is, in fact, what makes new mobile product development so exciting.
Thirdly, mobile data access does not imply mobile money will take off. Struggling mobile money deployments today would not cite tech-
nology as a top barrier to adoption. Having access to the technology is a necessary pre-condition, but is clearly not enough to suggest
that a particular outcome will materialise. A compelling value proposition for consumers, a strong business case for each of the players
along the value chain, and an enabling regulatory environment, at minimum, are necessary to drive mobile money uptake and usage.
Notwithstanding the challenges ahead, we will surely witness an exponential growth in demand for mobile broadband, and mobile
operators are likely to benefit from this rising demand. Whether or not they can also maintain a competitive edge in mobile money provi-
sion will vary across markets. Investing in scaling mobile money today and generating the trust of customers can help providers position
themselves to take advantage of tomorrow’s mobile internet opportunity.
15. GSMA Mobile for Development Impact, Mobile Platform Wars, February 2014
16. Ibid
11
