“State of the Industry: Results from the 2012 Mobile Money Adoption Survey;” by Claire Penicuad; published by Global System for Mobile Communications Association’s (GSMA’s) Mobile Money for the Unbanked program; 2012; 36 pages; available at http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/MMU_State_of_industry.pdf
This report presents the results of the Global Mobile Money Adoption Survey, launched by GSMA’s Mobile Money for the Unbanked program “to allow mobile money service providers to benchmark their performance against their peers in the industry.” The survey includes data supplied by 78 mobile money service providers representing approximately 60 percent of all mobile money service providers. The report indicates that the number of active mobile money customer accounts “almost tripled” between June 2011 and June 2012, with approximately 30 million active users of mobile money services performing approximately 224 million transactions with a total value of USD 4.6 billion. As “there are now more mobile money accounts than bank accounts in Kenya, Madagascar, Tanzania and Uganda, GSMA argues that mobile money is “contributing significantly to financial inclusion.”
“VisionSpring: Eye Care for the Base of the Pyramid;” by Manaus Consulting; published by the Inter-American Development Bank (IDB); March 2013; 29 pages; available at http://www.nextbillion.net/pubs/images/FINAL_VisionSpring_Evaluation.pdf
This report presents an analysis of a business model that provides eye care in low-income communities in El Salvador. The model was implemented by VisionSpring, an NGO based in the US State of New York, that saw its revenue increase “by more than six-fold” as its income derived from grants decreased by 34 percent between 2010 and 2011. The report highlights the use of a “hub-and-spoke” model, which combines the deployment of five optical stores (hubs) in El Salvador with microentrepreneurs (spokes) equipped with a “business toolkit containing all the products and materials needed for marketing and selling eyeglasses” in rural areas. Between 2009 and 2012, sales revenue increased from USD 20,000 to approximately USD 332,000, full-time staffing increased from one to 20 people, and the number of clients served increased from 3,204 to 15,038. As a result of these developments, the authors argue that the hub-and-spoke model is “a viable solution to serve unmet eye care needs and a source of employment for those at the base of the socioeconomic pyramid.”
“Rwanda Financial Diaries: Understanding the Financial Lives and Product Needs of Rwanda’s Underserved Consumers;” published by Bankable Frontier Associates; March 2013; 55 pages; available at http://corporate.visa.com/_media/rwanda-financial-diaries-bfa.pdf
This report is based on research conducted by Bankable Frontier Associates (BFA) intended to reveal the financial needs of Rwandans “across rural and urban settings, different income sources,” and various levels of interaction with formal financial services. While “low uptake of formal financial products is inhibited by fundamental access issues” in many countries, the authors highlight that approximately 90 percent of Rwandan adults live within five kilometers of a formal financial institution, so “access is not the primary barrier to effective financial inclusion in Rwanda.” The authors argue that “formal financial institutions wanting to serve and retain clients will need to ensure that the products they offer are adapted to… smaller, more frequent” transactions. While informal financial services including rotating savings and credit associations are often “uncomfortable and unreliable” and can lack reliability, privacy and transparency, the authors state that formal financial institutions are “well positioned” to offer products that address these challenges. According to BFA’s research, Rwandan consumers need improved access to financial services that allow them to “pay for education services in lump sums;” smooth consumption during “temporary income shortfalls;” and invest in business, housing and productive assets.
By Sam Allmendinger, Research Associate
Sources and Additional Resources:
“State of the Industry: Results from the 2012 Mobile Money Adoption Survey,”
http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/02/MMU_State_of_industry.pdf
“VisionSpring: Eye Care for the Base of the Pyramid,”
http://www.nextbillion.net/pubs/images/FINAL_VisionSpring_Evaluation.pdf
“Rwanda Financial Diaries: Understanding the Financial Lives and Product Needs of Rwanda’s Underserved Consumers,”
http://corporate.visa.com/_media/rwanda-financial-diaries-bfa.pdf
MicroCapital. April 1, 2013, “MICROCAPITAL BRIEF: MTN Mobile Money, Mobile Financial Services (MFS) Partner to Launch KwikAdvance Payday Loans in Ghana,”
https://www.microcapital.org/microcapital-brief-mtn-mobile-money-mobile-financial-services-mfs-partner-to-launch-kwikadvance-payday-loans-in-ghana/
MicroCapital. March 19, 2013, “MICROCAPITAL BRIEF: Value of Mobile Money Transactions in Kenya Grows 50% to $16b in 2012 Fiscal Year,”
https://www.microcapital.org/microcapital-brief-value-of-mobile-money-transactions-in-kenya-grows-50-to-16b-in-2012-fiscal-year/
MicroCapital. March 13, 2013, “MICROFINANCE PAPER WRAP-UP: “Unlocking the Potential: Women and Mobile Financial Services in Emerging Markets;” published by mWomen Global Development Alliance of the Global System for Mobile Communications Association (GSMA), Visa, Bankable Frontier Associates,”
https://www.microcapital.org/microfinance-paper-wrap-up-unlocking-the-potential-women-and-mobile-financial-services-in-emerging-markets-published-by-mwomen-global-development-alliance-of-the-global-system-for/
MicroCapital. March 19, 2013, “MICROCAPITAL BRIEF: Rwanda’s Microfinance Growth Attributed to Both Existing Institutions, Launch of New Savings and Credit Cooperatives (SACCOs),” https://www.microcapital.org/microcapital-brief-rwandas-microfinance-growth-attributed-to-both-existing-institutions-launch-of-new-savings-and-credit-cooperatives-saccos/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
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