My first job as a summer intern for MFTransparency has been to research the market in Malawi in preparation for the Transparent Pricing Initiative in Malawi, the first project launch of the enabling APR & EIR Program, on August 31st. Through my research I have learned many things, but none more poignant than how poor and underdeveloped the majority of Malawi is.
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Posts Tagged ‘Mobile Banking’
Malawi: A Country in Need of Microfinance
Friday, July 23rd, 2010Mobile Banking and the Future of Transparency
Tuesday, March 9th, 2010by Noah Simpson
Mobile banking is defining modern microfinance. Within the space of a few short years it has exploded to become a hot-button issue in the microfinance community, especially because of its potential to reach the unbanked. CGAP’s Technology Blog has covered the emergence of branchless banking extensively, and several of its recent posts have been written on the topic. In view of mobile banking’s extensive influence, it seems fitting to reflect upon the benefits and challenges it holds for consumer protection in general and for transparency in particular.
On many levels, mobile banking is great for consumers. It is allowing many traditionally unbanked people to have remote access to banking services and puts some power in the hands of the consumer. Additionally, when middlemen are taken out of the picture there is less fraud and mishandling of money. Finally, and perhaps most importantly, mobile banking tends to be cheaper than traditional banking. Some barriers exist, such as obtaining a phone in the first place, but banking-capable phones are rapidly dropping in price (e.g. Vodafone’s new phone under $15US, featured in a Technology Blog post). Despite the barriers, the declining costs of mobile banking is allowing greater financial inclusion.
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