The CGAP Microfinance Blog, which is operated by US-based think tank CGAP (Consultative Group to Assist the Poor), recently posted an article by Ignacio Mas of the US-based Bill & Melinda Gates Foundation that examines the role that mobile phones can play in facilitating broader financial inclusion by delivering savings, payment and budgeting services.
The author argues that while providers of mobile money services have prioritized payments, budgeting tools represent a missing link. He further states that phones offer an unparalleled level of immediacy and interactivity with customers by acting as a passbook, a calculator and as a channel for alerts and reminders. According to Mr Mas, “Mobile money is not just a cost reduction story; it ought to be a service creation and integration story as well. Mobile phones offer the possibility for banks to maintain a constant presence in their customers’ lives, helping them budget for today and plan for tomorrow” .
By Medha Ravi, Research Associate
About CGAP (Consultative Group to Assist the Poor):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
Source and Resources:
CGAP (Consultative Group to Assist the Poor) Microfinance Blog, “Delivering on the Savings Promise of Mobile Money”, http://microfinance.cgap.org/2011/04/26/delivering-on-the-savings-promise-of-mobile-money/
MicroCapital.org story, February 15, 2011, “MICRPCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Explores Over-Indebtedness in Microfinance Through New Blog Series”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-over-indebtedness-in-microfinance-through-new-blog-series/
MicroCapital.org story, April 25, 2011, “MICROCAPITAL BRIEF: CGAP (Consultative Group to Assist the Poor) Explores Savings On Microfinance Blog”, http://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-explores-savings-on-microfinance-blog/
MicroCapital Microfinance Universe Profile: CGAP (Consultative Group to Assist the Poor), http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
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