Mobile money is a form of electronic money that allows you to conduct financial transactions using your mobile phone. It allows financial services to be extended to unbanked people at a significantly lower cost because physical infrastructure isn’t needed.
Here are 4 ways in which Mobile money has transformed lives in Kenya:
1. Financial inclusion
Financial inclusion is listed as a target paramount to the achievement of 8 out 17 global sustainable development goals including eradicating poverty, ending hunger and food security. Generally, financial inclusion supports economic growth and achievement of development goals across sectors.
Kenya has been ranked the top country for the third consecutive year in a survey on financial and digital inclusion by a US-based public institution, helped by the wide adoption of mobile money in the local economy.
All this is driven by Mobile money. Just to give you an example, financial inclusion is reported to be at 80 percent in Kenya. When you remove mobile money, it drops to 23 percent. So you can see what mobile money does for financial inclusion in Kenya.
In line with its transform lives agenda, Safaricom is more determined than ever to continue deepening financial inclusion. Its original M-PESA send-money-home service, which was launched in 2007, has paved the way for numerous other innovative services, specifically created to meet its’ customers needs.
If you look at how M-Pesa has evolved in terms of growing financial inclusion, 43 percent of the GDP is flowing through M-PESA. So you can see how a mobile money platform can drive financial inclusion.
Read Also: Innovative M-PESA voice platform to further drive financial inclusion
2. The rise of Mobile banking
Mobile money has opened up innovation in the whole banking industry in Kenya. All banks in Kenya now have integrated mobile banking in its transactions just because that’s the way of life here.
Telcos have not been left behind. Safaricom is at the forefront of mobile banking in Kenya thanks to M-Pesa and other innovative products that came after.
M-PESA has over the past since evolved from a money transfer service to a robust payment and banking platform . It is now one of the biggest success stories in the history of serving customers at the economic bottom of the pyramid – the world’s poorest.
Mobile money has given rise to innovative products such as M-Shwari, KCB-M-Pesa others including Tala and Branch.
Musoni a microfinance in Kenya handles all its engagements with borrowers all paperless from application to disbursement. All is done on mobile in new era of digital micro-finance.
3. Access to Credit
Kenyan government has created an enabling regulatory environment for digital financial services to thrive. According to Brookings report, 75% of adult Kenyans have a financial account, with 71% of women owning financial accounts.
This has been largely driven by the widespread use of mobile money solutions that have made it easier and cheaper to send and receive money as well as to take out loans.
Mobile money transactions history such as M-Pesa statements are now widely being used by many institutions
Financial inclusion allows the “unbanked” to access basic financial services – not necessarily a formal bank account, but to be able to receive money or make payments via the mobile phone. That makes a fundamental difference in the lives of the unbanked population.
4. Poverty Reduction.
Many People have been able to access credit to invest in assets and businesses to add value, Small businesses have been able to get loans to expand creating employment opportunities. Mobile money penetration including mobile banking has had a huge general multiplier effect to the economy in terms of opportunities and better living.
Read Also: 5 ways Internet connectivity has Created Opportunities in Kenya.
5 ways Internet connectivity has Created Opportunities in Kenya.
2 Comments
Pingback: Kenya’s HydroIQ wins “Startup of the year Africa 2018''
Pingback: Paypal M-pesa - How to link Safaricom M-Pesa to PayPal Account