PlaNet Finance, a France-based non-governmental organization (NGO) with the mission of developing microfinance, and Oliver Wyman, a US-based management consulting company, have published a joint report exploring the ability of mobile technology to provide access to a wide range of financial products beyond simple mobile payments. Sponsored by the Bill and Melinda Gates Foundation, a US-based private foundation, the report examines distribution strategies and “second-generation” mobile microfinance products piloted in West Africa and Southeast Asia.
“The study outlines that the benefits of these models include a more than twofold increase in access to banking, 20-50% lower operational costs for the microfinance institution and revenue or market share benefits for the Mobile Network Operator”, says Arnaud Ventura, co-founder and vice president of PlaNet Finance Group [1]. The report draws two main conclusions, “Mobile Microfinance can have a significant impact on increasing financial services access for unbanked subscribers” and “It is a cost-effective way for banks and MFIs to reach the masses by capitalizing on the widespread penetration of telecom distribution networks” [1].
By: Alexandra Pattee, Research Associate
About PlaNet Finance: Founded in 1998 in Paris, France, PlaNet Finance is a nongovernmental organization (NGO) with the mission of alleviating poverty through microfinance development. As of 2008, PlaNet Finance is active in 80 countries and is comprised of eight independent units: PlaNet Finance Advisory Services, which provides technical and advisory services; Planet Rating, a microfinance rating agency; PlaNIS responsAbility SAS, which specializes in advisory services and structuring and managing microfinance funds; MicroCred, an investor in microfinance; PlaNet Guarantee, which specializes in microinsurance; FinanCites, a social venture capital company; MicroFit, a microfinance software unit; and PlaNet University, a microfinance training provider.
About Oliver Wyman: Oliver Wyman is a global management consulting company specializing in strategy, operations, risk management, organizational transformation, and leadership development. Founded in 1970 as Temple, Barker and Sloan Incorporated, Oliver Wyman currently works out of 50 cities across 25 countries. Oliver Wyman is part of the Oliver Wyman Group, a division of Marsh and McLennan Companies with revenues of USD 10.5 billion as of December 2009.
About the Bill and Melinda Gates Foundation: Based in the US, the Bill & Melinda Gates Foundation provides grants to organizations in approximately 100 countries around the world with the aim of enhancing health care, reducing poverty and expanding educational opportunities and access to information technology. As of September 2009, its endowment totaled USD 34 billion. The Bill & Melinda Gates Foundation’s Financial Services for the Poor initiative focuses on providing people with secure places to save money. To support this initiative, the foundation works with financial organizations to increase access to technology (point of sales devices, automated teller machines, etc.) and forge partnerships between mobile phone companies, banks and microfinance institutions. It also supports the startup and growth of new banks in challenging markets.
[1] PlaNet Finance Press Release, “PlaNet Finance and Oliver Wyman publish the joint report ‘Beyond payments Next generation Mobile Banking for the Masses'”, http://www.microfinancegateway.org/gm/document-1.9.50101/Press%20Release.pdf
MicroCapital.org Article, February 8, 2011, “responsAbility Social Investments Announces Equity Investment in PlaNet Finance Investment Services (PlaNIS)”, https://www.microcapital.org/microcapital-brief-responsability-social-investments-announces-equity-investment-in-planet-finance-investment-services-planis/
MicroCapital.org Article, January 18, 2011, “Bill and Melinda Gates Foundation Provides $10m for Haiti Mobile Money Initiative (HMMI) in Collaboration with US Agency for International Development (AID)”, https://www.microcapital.org/microcapital-brief-bill-and-melinda-gates-foundation-provides-10m-for-haiti-mobile-money-initiative-hmmi-in-collaboration-with-us-agency-for-international-development-aid/
MicroCapital.org Article, December 10, 2010, “Bill & Melinda Gates Foundation Pledges $500m to Expand Microsavings Over the Next 5 Years Including Grants To World Savings Bank Institute (WSBI), Vodacom Tanzania, ShoreBank International, CGAP (Consultative Group to Assist the Poor), World Bank and Yale University/Innovations for Poverty Action”, https://www.microcapital.org/microcapital-brief-bill-melinda-gates-foundation-pledges-500m-to-expand-microsavings-over-the-next-5-years-including-grants-to-world-savings-bank-institute-wsbi-vodacom-tanzania-shorebank/
MicroCapital.org Article, August 16, 2010, “PlaNet Finance India Inviting Applications for Microfinance Process Excellence Award”, https://www.microcapital.org/microcapital-brief-planet-finance-india-inviting-applications-for-microfinance-process-excellence-award/
MicroCapital.org Article, June 11, 2010, “Gates Foundation, USAID Offer $15m to Initiators of Mobile Money Services in Haiti”, https://www.microcapital.org/microcapital-brief-gates-foundation-usaid-offer-15m-to-initiators-of-mobile-money-services-in-haiti/
MicroCapital.org Article, May 21, 2010, “PlaNet Finance China Reports One Third of Chinese Have No Access to Financial Services”, https://www.microcapital.org/microcapital-brief-planet-finance-china-reports-one-third-of-chinese-have-no-access-to-financial-services/
MicroCapital.org Article, August 6, 2008, “Following Strategic Review, the Gates Foundation to Focus on Microsavings Within Microfinance Initiative”, https://www.microcapital.org/microcapital-brief-freedom-from-hunger-publishes-results-of-four-year-bill-melinda-gates-foundation-funded-grant-program-to-bring-combination-of-microfinance-and-healthcare-options-to-rural-po/
MicroCapital.org Article, May 27, 2008, “Oliver Wyman Management Consulting Firm Announces Strategic Alliance with Microfinance Institution, Kiva Microfund”, https://www.microcapital.org/microcapital-story-oliver-wyman-management-consulting-firm-announces-strategic-alliance-with-microfinance-institution-kiva-microfund/
MicroCapital’s Microfinance Universe: PlaNet Finance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PlaNet+Finance#Description_140_word_limit_
MicroCapital’s Microfinance Universe: Oliver Wyman, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oliver+Wyman
MicroCapital’s Microfinance Universe: Bill and Melinda Gates Foundation, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bill+and+Melinda+Gates+Foundation
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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