http://technology.cgap.org/2010/03/15/mobile-operators-and-banks-if-you-cant-beat-them-buy-them/ How can technology increase the reach of microfinance? Mon, 06 Feb 2012 18:55:24 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://technology.cgap.org/2010/03/15/mobile-operators-and-banks-if-you-cant-beat-them-buy-them/comment-page-1/#comment-3748 Adnan NAYAB Sun, 27 Nov 2011 08:24:05 +0000 http://technology.cgap.org/?p=2327#comment-3748 The tagline is catchy. However in reality it is easier said than done. As now in Pakistan firstly due to stronger clout & tilt of the regulator towards bank-led model none of significant banks (MFIs) are available for sale particularly to telcos. Yes M-Pesa & Tameer-Telenor are good examples but yet both are perfect exceptions due to innate reasons. Though apparently it shows a perfect business case of synergy & balance, whereby one side (MNO/telcos) with their aggressive brand marketing, technological & retail distribution (ANM) expertise. AND the FIs due to their elaborate financial controls, processes and public fidelity on money can make a leap frog jump in taking branch less banking (thus financial inclusion of the unbanked) to the unprecedented levels. However, one must not ignore the fundamental dichotomies particularly the cultural differences between these two business models which can potentially hamper the success & survival of any such partnerships. Therefore buying a bank by a telco or vice versa can mitigate such risks but certainly not the panacea. The tagline is catchy. However in reality it is easier said than done. As now in Pakistan firstly due to stronger clout & tilt of the regulator towards bank-led model none of significant banks (MFIs) are available for sale particularly to telcos. Yes M-Pesa & Tameer-Telenor are good examples but yet both are perfect exceptions due to innate reasons. Though apparently it shows a perfect business case of synergy & balance, whereby one side (MNO/telcos) with their aggressive brand marketing, technological & retail distribution (ANM) expertise. AND the FIs due to their elaborate financial controls, processes and public fidelity on money can make a leap frog jump in taking branch less banking (thus financial inclusion of the unbanked) to the unprecedented levels. However, one must not ignore the fundamental dichotomies particularly the cultural differences between these two business models which can potentially hamper the success & survival of any such partnerships. Therefore buying a bank by a telco or vice versa can mitigate such risks but certainly not the panacea.

]]> http://technology.cgap.org/2010/03/15/mobile-operators-and-banks-if-you-cant-beat-them-buy-them/comment-page-1/#comment-1968 Fehmeen Sun, 28 Mar 2010 14:30:38 +0000 http://technology.cgap.org/?p=2327#comment-1968 Another implication is the purging of fraud and terrorists from the system. If MNOs merely operate using non-bank led models, there is a significant risk that 'anyone' can use the service to transfer funds. However, when banks come into play, Know Your Customer (KYC) procedures go a long way in limiting the options available for illegal funds transfers Another implication is the purging of fraud and terrorists from the system. If MNOs merely operate using non-bank led models, there is a significant risk that ‘anyone’ can use the service to transfer funds. However, when banks come into play, Know Your Customer (KYC) procedures go a long way in limiting the options available for illegal funds transfers

]]> http://technology.cgap.org/2010/03/15/mobile-operators-and-banks-if-you-cant-beat-them-buy-them/comment-page-1/#comment-1921 Zadling Wed, 17 Mar 2010 13:24:57 +0000 http://technology.cgap.org/?p=2327#comment-1921 I love the headline! That is an odd relationship between banks and telecom companies. I love the headline! That is an odd relationship between banks and telecom companies.

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