Boston Consulting Group, a US-based management consulting firm, recently released a study it conducted for Telenor Group, a Norwegian communications service provider with operations in 11 European and Asian markets, looking at what effect mobile financial services may have through the year 2020 [1]. The study, named “Socio-economic impact of mobile financial services,” considers five countries: Bangladesh, India, Malaysia, Pakistan and Serbia. Telenor Group’s fully owned subsidiary, Telenor Pakistan, controls Tameer Microfinance, a microfinance bank in Pakistan. Telenor Pakistan and Tameer jointly operate a branchless banking service in Pakistan called Easypaisa which also has a mobile banking service component.
The study posits that in the developing world, more than 2.5 billion adults are “unbanked,” meaning they have no access to traditional financial services like banks. But most of these people reportedly have mobile phones and thus could be served through mobile financial services. The study indicates that across the five countries covered, “mobile financial services have the potential to reduce financial exclusion by five to 20 percent through 2020 and increase GDP by up to five percent.”
Some of the key findings of the study in each country are: mobile financial services may reduce the number of unbanked people in Pakistan by 20 percent by 2020, in India the number of people with formal savings accounts could increase by 142 million, in Bangladesh mobile services could increase tax revenues by USD 500 million, in Serbia they could lead to 23,000 new jobs while economic inequality in Malaysia possibly could be reduced by five percent.
Jon Fredrik Baksaas, President and CEO of Telenor Group, says, “The mobile phone is emerging as a key tool for bringing financial services to unbanked populations. It allows users to complete basic payments and remittances via the mobile phone, and have easier access to savings, credit and insurance products.”
For the complete report, you may visit: http://www.telenor.com/en/resources/images/Shaping%20our%20financial%20future%20final_tcm28-58718.pdf
By Nisha Koul, Research Associate
About Telenor Group: Telenor Group is a Norwegian mobile communications company provider operating in 11 markets in Europe and Asia as of 2010. Its fully owned subsidiary, Telenor Pakistan, controls Tameer Microfinance, a microfinance bank in Pakistan. Easypaisa is a joint venture of Telenor Pakistan and Tameer Microfinance that provides both branchless banking and mobile financial services in Pakistan. As of 2010, Telenor Group reported total revenues of NOK 95 billion (USD 17 billion).
About the Boston Consultancy Group (BCG): Boston Consultancy Group is a global management consulting firm with approximately 70 offices around the world.
Sources and Additional Resources:
[1] Press Release, Telenor Group, “Banking the unbanked; mobile financial services may improve the lives of two billion”, http://www.telenor.com/en/news-and-media/press-releases/2011/banking-the-unbanked-mobile-financial-services-may-improve-the-lives-of-2-bn
MicroCapital.org story, July 15, 2011, “MICROCAPITAL BRIEF: World Economic Forum, Boston Consulting Group Publish “Mobile Financial Services Development Report 2011,” https://www.microcapital.org/microcapital-brief-world-economic-forum-boston-consulting-group-publish-%E2%80%9Cmobile-financial-services-development-report-2011%E2%80%9D/
MicroCapital.org story, July 11, 2011 , “MICROCAPITAL BRIEF: Easypaisa, Branchless Banking Service of Tameer Microfinance Bank Limited, Telenor Pakistan Facilitates $9m in Remittances Over 10 Months,” https://www.microcapital.org/microcapital-brief-easypaisa-branchless-banking-service-of-tameer-microfinance-bank-limited-telenor-pakistan-facilitates-9m-in-remittances-over-10-months/
MicroCapital.org story, June 15, 2011, “MICROFINANCE PAPER WRAP-UP: An Emerging Platform: From Money Transfer System to Mobile Money Ecosystem; By Jake Kendall, Bill Maurer, Philip Machoka and Clara Veniard; Published by University of California Irvine School of Law,” https://www.microcapital.org/microfinance-paper-wrap-up-an-emerging-platform-from-money-transfer-system-to-mobile-money-ecosystem-by-jake-kendall-bill-maurer-philip-machoka-and-clara-veniard-published-by-university-of-calif/
MicroCapital.org story, October 27, 2009, “MICROCAPITAL.ORG STORY: Communications Company Telenor Pakistan Launch Mobile Banking Service with Tameer Microfinance Bank,” https://www.microcapital.org/microcapitalorg-story-communications-company-telenor-pakistan-launch-mobile-banking-service-with-tameer-microfinance-bank/
MicroCapital Universe Profile: Telenor Group, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=telenor
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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