MICROCAPITAL BRIEF: US Under Secretary of State Maria Otero: Mobile Money, Policy Reform are Keys to Financial Success

Speaking at a recent panel held by the Brookings Institution, a US-based nonprofit public policy organization, on “Growth Through Innovation in Africa: Mobile Financial Services and Financial Inclusion,” Maria Otero, US Under Secretary of State for Democracy and Global Affairs, argued that mobile money could substantially support financial inclusion efforts. “With mobile money,” she writes, “we are witnessing a paradigm shift, in which efficient, secure, and remote banking goes beyond the walls of traditional branches. Instead of clients going to banks, banks now go to clients.”

Ms Otero, the former president and CEO of US-based nonprofit ACCION International, points to effective policy as the key for successful mobile banking. “The government must take a proactive role in the promotion of financial inclusion, particularly by fostering enabling environments through regulation and policy. As banking evolves, so should regulation.” Ms Otero explains that “a government can start by moving its own systems on to electronic and mobile platforms. This role isn’t so much about governments doing more—it’s simply about them doing it better.”

By Rick Altieri, Research Associate

ACCION International is a private, US-based nonprofit organization with the mission of alleviating poverty by providing financial products such as microenterprise loans and and business training. ACCION was founded in 1961 and issued its first microloan in 1973 in Brazil. ACCION’s partner microfinance institutions provide loans to men and women entrepreneurs in 23 countries in Latin America, Asia, Africa and the United States. As of 2009, ACCION’s network reportedly serves 3.3 million active clients and has an aggregated gross loan portfolio of USD 31.8 billion.

Sources and Resources:

US Department of State: “Panel Remarks on  ‘Growth Through Innovation in Africa: Mobile Financial Services and Financial Inclusion’” by Maria Otero, May 16, 2011. http://www.state.gov/g/163618.htm

MicroCapital.org Brief, “CGAP (Consultative Group to Assist the Poor) Microfinance Blog Discusses Role of Mobile Phones in Integrating Savings, Payments, Budgeting Services” May 10, 2011. <>https://www.microcapital.org/microcapital-brief-cgap-consultative-group-to-assist-the-poor-microfinance-blog-discusses-role-of-mobile-phones-in-integrating-savings-payments-budgeting-services/

MicroCapital.org Brief, “Goodwell West Africa Invests in Nigerian Mobile Money Service, Paga” May 9, 2011. https://www.microcapital.org/microcapital-brief-goodwell-west-africa-invests-in-nigerian-mobile-money-service-paga/

MicroCapital.org Brief, “Experts See Mobile Money Hitting $200b by 2012” December 25, 2009. MicroCapital.org Brief, “Experts See Mobile Money Hitting $200b by 2012” December 25, 2009. https://www.microcapital.org/microcapital-brief-experts-see-mobile-money-hitting-200b-by-2012/

MicroCapital.org Brief, “ACCION International’s CEO Maria Otero To Be United States Under Secretary of Democracy and Global Affairs”, May 14, 2009. https://www.microcapital.org/microcapital-story-accion-internationals-ceo-maria-otero-to-be-united-states-under-secretary-of-democracy-and-global-affairs/

MicroCapital’s Microfinance Universe Profile: ACCION International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ACCION+International

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microcapital-story-accion-internationals-ceo-maria-otero-to-be-united-states-under-secretary-of-democracy-and-global-affairs

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