Comments on: Mobile Banking in Tanzania: Concluding Thoughts http://technology.cgap.org/2009/08/18/mobile-banking-in-tanzania-concluding-thoughts/ How can technology increase the reach of microfinance? Fri, 10 Sep 2010 19:21:06 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: John Hurley http://technology.cgap.org/2009/08/18/mobile-banking-in-tanzania-concluding-thoughts/comment-page-1/#comment-2137 John Hurley Tue, 08 Jun 2010 11:05:26 +0000 http://technology.cgap.org/?p=1146#comment-2137 I think it is important to make the distinction between "Mobile Banking" and "Mobile Payment" systems (such as M-Pesa and ZAP). Mobile Banking extends the reach of banking services to those who already have bank accounts. (It obviates the need to travel to branches or to get internet access to conduct banking transactions). Mobile payment systems also have those benefits but extend the reach of mobile payment and transfers to members of the population who do not have bank accounts. Banks who do not establish a presence in mobile banking should not be surprised if the general population adopts alternative mechanisms for conducting their financial transactions. Mobile banking provides them an opportunity to extend the geographic reach of their services, which could provide them with huge growth in business, if they take it up. I think it is important to make the distinction between “Mobile Banking” and “Mobile Payment” systems (such as M-Pesa and ZAP). Mobile Banking extends the reach of banking services to those who already have bank accounts. (It obviates the need to travel to branches or to get internet access to conduct banking transactions).

Mobile payment systems also have those benefits but extend the reach of mobile payment and transfers to members of the population who do not have bank accounts.
Banks who do not establish a presence in mobile banking should not be surprised if the general population adopts alternative mechanisms for conducting their financial transactions. Mobile banking provides them an opportunity to extend the geographic reach of their services, which could provide them with huge growth in business, if they take it up.

]]> By: Arun http://technology.cgap.org/2009/08/18/mobile-banking-in-tanzania-concluding-thoughts/comment-page-1/#comment-1233 Arun Fri, 21 Aug 2009 05:54:21 +0000 http://technology.cgap.org/?p=1146#comment-1233 Is there any study done on whether the current mobile payment systems in Tanzania provide for an agent to conspire with customers to conduct multiple transactions purely to gain commissions where the commissions are attractive enough to off-set fees charged to customers for such transactions? Revenue leakage, fraud and other control weaknesses will lead to the exploitation of such business models. All study conducted so far has been focussed only on the business model. It would really help even if a periodic analysis of risks are reported so that better controls can be designed, implemented and tested where all parties to the business are comfortable and no one takes the entire brunt of any untoward incident in the system. Is there any study done on whether the current mobile payment systems in Tanzania provide for an agent to conspire with customers to conduct multiple transactions purely to gain commissions where the commissions are attractive enough to off-set fees charged to customers for such transactions?

Revenue leakage, fraud and other control weaknesses will lead to the exploitation of such business models.

All study conducted so far has been focussed only on the business model. It would really help even if a periodic analysis of risks are reported so that better controls can be designed, implemented and tested where all parties to the business are comfortable and no one takes the entire brunt of any untoward incident in the system.

]]> By: links for 2009-08-19 « Brandopia http://technology.cgap.org/2009/08/18/mobile-banking-in-tanzania-concluding-thoughts/comment-page-1/#comment-1227 links for 2009-08-19 « Brandopia Thu, 20 Aug 2009 00:05:53 +0000 http://technology.cgap.org/?p=1146#comment-1227 [...] Mobile Banking in Tanzania: Concluding Thoughts Some pretty cool examples of Mobile Banking in Africa. (tags: Mobile Banking payment) [...] [...] Mobile Banking in Tanzania: Concluding Thoughts Some pretty cool examples of Mobile Banking in Africa. (tags: Mobile Banking payment) [...]

]]>