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Mobile Banking
* Over 1 billion people in the world with mobile phones but no bank accounts
* Banks say, “Let’s use phones to serve these people!”
* Several mobile banking services exist today
o M-PESA (Kenya), Wizzit (S.A.), GCash (Philippines)
o > 100 million dollars transacted per day
Howdoes it work?
* Anetwork of human agents mediate transactions
o Run small businesses: mobile recharge, pharmacy etc
o Commissioned by m-banking provider
* Benefit to customers:
o Low-cost, low-effort savings (often, there’s interest)
o A new remittance channel
o Others that evolve contextually (m-payments)
* Benefit to agents:
o A second source of income
* Note: different from mobile banking for the rich
o There, the goal is convenience; here, it is access.
Security Issues
* Phones can be lost or stolen. Banks must authenticate users.
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Category : Banking