Window on the Unbanked: Mobile Money in the Philippines
by Jim Rosenberg : Tuesday, January 12, 2010
In 2009, CGAP teamed up with the GSM Association (GSMA) and McKinsey to measure the global market for financial services delivered via mobile phones (mobile money) in 147 developing countries. This is the first study of mobile money and the unbanked—those without access to formal financial services—estimated to be almost 4 billion worldwide.
The Philippines provides a window onto the complex financial lives of low-income families. Three out of four Filipinos are unbanked (Demirgüç-Kunt, Beck, and Honohan 2008). The country hosts two of the earliest pioneers in mobile money—Smart’s Smart Money launched in 2001 and Globe’s GCASH launched in 2004. CGAP, GSMA, and McKinsey gathered data on 1,042 unbanked consumers in the Philippines, split between mobile money users and nonusers.
Download Window on the Unbanked: Mobile Money in the Philippines
Members of CGAP’s Mobile Banking and Microfinance Group can also request an in-depth toolkit with which they may replicate this analysis in their own market(s).
-Jim Rosenberg
January 18th, 2010 at 11:47 am, Nanci Schwartz ()
Mark Pickens interesting brief includes steps the industry needs to take in order to expand adoption of microfinance services. MoneyGram and Smart Communications just announced the availability of initial international money transfer services to Smart customers in the Philippines. Using Mozido’s platform, customers in San Diego and Hong Kong can send money to loved ones Smart phones in The Philippines. MoneyGram expects more agent locations around the world will be able to facilitate these transactions.
Pickens suggests that providers explore services beyond remittance and top-ups in order to expand usage. Mozido, which is a leader in providing mobile wallet services, offers its partners the ability to develop customer loyalty and marketing programs that will increase demand for services and thus generate more revenue.
More customer-focused services, like these, will create greater stickiness and thus will encourage an increase in adoption of mobile banking and other multichannel services.
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January 15th, 2010 at 6:00 pm, IFAP Information Society Observatory ()
Window on the Unbanked: Mobile Money in the Philippines…
Title: Window on the Unbanked: Mobile Money in the Philippines
Author: Mark Pickens
Pages: 4 pp.
Publisher: CGAP: Consultative Group to Assist the Poor.
Date (published): 12/01/2010
Date (accessed): 15/01/2010
Type of information: research brief
Langu…