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> Posted by Jeffrey Riecke, Communications Associate, CFI
Coinciding with this week’s Mobile World Congress in Barcelona, GSMA’s Mobile Money for the Unbanked (MMU) program released its fourth annual ‘State of the Industry Report on Mobile Financial Services.’ I talked with Jennifer Frydrych, Insights Coordinator for the MMU program and one of the authors on the report, about the project’s findings. The conversation touched on new markets, shifts in the mobile payments mix, successes with products beyond payments, the main hurdles facing mobile money ecosystems, and more.
1. The mobile money industry has grown rapidly in recent years. Can you bring us up to date with some of the growth figures and dynamics?
In the past five years, mobile money services have spread across much of Africa, Asia, Latin America, and the Middle East. At the end of 2014, there were 255 live mobile money services across 89 markets, 36 more than in 2013. Mobile money is now available in 61 percent of developing markets globally. In terms of adoption and usage growth, 75 million additional mobile money accounts were opened globally in 2014, bringing the total number of registered accounts to 299 million. Importantly, account activity increased faster than account registration in 2014, and the total number of active mobile money accounts is now 103 million (up from 73 million in 2013). An increasing number of services are reaching scale: 21 services now have more than one million active accounts.
2. As of the last State of the Industry report, half of all live mobile money deployments were in sub-Saharan Africa. How has this distribution changed? What were some new or emerging markets of the past year?
There were 22 new services launches in 2014, of which half occurred in sub-Saharan Africa. The mobile money industry in sub-Saharan Africa continues to grow, and the region still accounts for just over half of all live services globally, and 60 percent of all active accounts. Much of this success can be attributed to East Africa; however we are now seeing exciting growth in mobile money uptake and active usage in West Africa.
> Posted by Jeffrey Riecke, Communications Assistant, CFI
The majority of individuals around the world without formal bank accounts are women. In the developing world, 63 percent of women lack accounts, versus 54 percent of men. Mobile financial services offer a path to inclusion given that 1.7 of the 2.5 billion unbanked own mobile phones. However, the path is longer for women, as the majority of mobile phone owners are men.
Visa, mWomen, and Bankable Frontier Associates are working together to bring mobile services to women. Today at the Mobile World Congress in Barcelona they’re releasing joint research that examines how to best design mobile financial services to reach women at the base of the pyramid (BoP), Unlocking the Potential: Women and Mobile Financial Services in Emerging Markets.
You might remember our posting about mWomen research on mobile phone usage among BoP women earlier this year. The previous report, Striving and Surviving: Exploring the Lives of Women at the Base of the Pyramid, cast light on the opportunity for mobile money services to benefit BoP women. This potential was evidenced in the report’s findings that BoP women are largely responsible for managing their family’s finances, that they often go to unsafe, costly, and time-consuming lengths to do so, and that one of the biggest barriers preventing their use of formal financial services is a lack of nearby facilities.
Unlocking the Potential builds off Striving and Surviving to establish where the developing world is with mobile financial services among BoP women. Over the past few months the research team has worked with women in Indonesia, Kenya, Pakistan, Papua New Guinea, and Tanzania to better understand their relationship with mobile financial services, examining how they manage their money, what their needs are, and how mobile financial services can fit into their lives.