Over the past three decades, microfinance has given millions of people access to financial services for the first time. Microfinance refers to all kinds of financial services that can help poor people better manage their lives and their money, and includes insurance, savings and microcredit, which involves giving small loans to poor individuals for a range of purposes. Therefore microcredit can be seen as a narrower subset of microfinance. As such, mobile money providers and microfinance institutions are starting to work together to improve further the quality and range of financial services available to the poor. It’s becoming increasingly clear that the assets and capabilities of microfinance institutions and mobile money service providers are complementary and can range from distributing cash and electronic value using MFI infrastructure to disbursing microloans and accepting repayments on mobile payment systems.
In this section we highlight articles, blog posts and other resources that operators might find useful when researching this topic.
1. What are the various roles that MFIs can play in Mobile Money?
Microfinance: From Manual to Mobile Enabled
Author : SMART
Microfinance and Mobile Banking: The Story So Far
Author : CGAPThis Focus Note aims to do two things: (i) explore the various roles that MFIs can play in mobile money and (ii) explore the potential benefits MFIs and their customers expect to gain from pursuing mobile money.
The Intersection of Mobile Money and Microfinance
Author : Neil Davidson, GSMAOver the past three decades, microfinance has given millions of people access to financial services for the first time. As such, this post explores how mobile money providers and microfinance institutions are starting to work together to improve further the quality and range of financial services available to the poor.
Beyond Payments – Next Generation Mobile Banking for the Masses
Author : Planet Finance and Oliver WymanPlaNet Finance and Oliver Wyman look at distribution strategies and second generation mobile microfinance products to explore the power of mobile technology in providing low income consumers with access to a wide range of financial products that go beyond simple mobile payments.
Microfinance 2.0
Author : Camilo Tellez, GSMAThis post highlights Musoni, an innovative MFI in Kenya which has been built from the ground up to be “all mobile”, which means that loan disbursements and repayments are made exclusively on M-PESA.
2. Other Resources
Accelerating Financial Inclusion through Innovative Channels
Author : Amitabh SaxenaThis paper outlines ten challenges that are holding MFIs back from deploying alternative channels and provides a roadmap for MFIs—and broader stakeholders—who seek to overcome these hurdles.
Reframing Microfinance: Enabling Small Savings and Payments, Everywhere
Author : Ignacio MasIn this article, the key elements in the savings discussion are described as a means of determining how we can deliver low-balance savings services sustainably to poor people. Read the article for an analysis of the four key elements that underpin the viability of formal micro-savings offerings: the competition from informal savings mechanisms, the importance of formal trust-building through branding and marketing, the problem of distribution, and the complementarity between savings and payment services.
Tameer Microfinance Bank and Telenor Provide Insights on easypaisa
Author : Paul LeishmanIn this post, MMU discusses with Arif Qayyum from Telenor and Abbas Sikander from Tameer Microfinance Bank to learn more about their approach focusing on the structure of a mobile operator / bank partnership, their approach to agent distribution and their product launch roadmap and plans to drive adoption of an e-wallet.
