6 months + 200 technology and finance leaders from 30 countries = four scenarios of branchless banking for poor people in 2020.

CGAP and DFID invite you to a special webcast discussion of the CGAP/DFID Branchless Banking Scenarios 2020 Project and Focus Note.

The event was webcast live on the CGAP Technology Blog starting at 3pm ET (20:00 GMT) on December 1, 2009.

Watch the video – Branchless Banking Scenarios for 2020

Snapshot of branchless banking today

• Financial inclusion is growing in most countries. This is often as a result of the expansion of conventional banking channels, such as branches and automated teller machines (ATMs);
• Bricks-and-mortar growth is inherently limited by its cost. Branchless banking presents a cheaper option but has only modest reach to date in most countries;
• Where branchless banking is occurring, several of the following factors are usually at work: (i) industry belief in future profitability; (ii) enabling regulatory change; (iii) a dramatic fall in connectivity costs; (iv) the creation of cash-handling agents using existing networks; and,
• Current hype about the potential of branchless banking is running ahead of reality. Massive sustained success in reaching the poor requires more accurate insights on poor people’s financial needs and adoption behaviour. This is only now starting to become available.

Four Forces Shaping Branchless Banking for 2020

• Demographic changes—including a greater number of younger consumers coming into the market and greater mobility at least within countries—will be favourable for the adoption of branchless banking;
• Activist governments will play a greater role as regulators of the financial sector, providers of social safety nets, and providers or encouragers of the rollout of low-cost bank accounts and financial infrastructure. This expanded role may be helpful for financial inclusion;
• While security concerns about cash crime will continue to drive the adoption of electronic transaction channels, the rise of electronic crime will affect consumer confidence and test the risk management of financial providers; and,
• Internet browsing via mobile phones will reduce costs of financial transactions and enable new players to offer financial services.

Speakers include:

• Elizabeth Littlefield, CEO of CGAP
• Mavis Owusu Gyamfi, Head of Profession, Private Sector Development, DFID
• Robert Annibale, Global Head of Microfinance, Citigroup
• Rizza Maniego-Eala, Globe Telecom
• Daniel Radcliffe, Bill & Melinda Gates Foundation
• Brian Richardson, WIZZIT
• Abbas Sikander, Tameer Microfinance Bank
• Abhishek Sinha, Eko
• Peer Stein, IFC

The driving question that the scenarios project has sought to answer is: “How can government and private sector most affect the uptake and use of branchless banking among the un-served majority by 2020?”

-Jim Rosenberg