There was a time when mobile phones were seen as a plaything of the rich – the image of of the mobile phone as a yuppie toy took a long time to be dispelled. Whilst CGAP readers are switched on to the benefits and occasional drawbacks of access to basic financial services it is sometimes necessary to remind our colleagues and clients of the merits of universal access. The question that us most commonly asked is: given their relatively low level of income, to what extent do the unbanked need access to mobile money services?

One way to think about this issue is to consider two people living in very different urban environments – who would benefit more from the introduction of mobile phone banking services – a white-collar worker in New York City or a migrant manual laborer living out of a dormitory in Xi’an? The former has alternatives at her disposal: a bank account, credit and debit cards since her student years; account information can be checked through home and work computers; the nearest ATM is no more than a block or two away; debit, credit and cash options for most purchases; and credit companies proactive pre-approving her for yet another piece of plastic.

What are the needs of the poor in this space? What does it mean to ‘design for inclusion’? - Jan Chipchase

Over in Xi’an his highly variable income means that the latter is most likely not considered a viable customer for the established banks; his identity card has been held by his employer as collateral to be returned when the labouring job is complete, meaning that even if he had an account there would be a considerable barrier to withdrawing money at a branch; living in dormitory shared with 50 others means that things of value have a tendency to go missing and the alternative, carrying or wearing is at risk of damage or theft; and that the very long hours spent working or waiting for work plus the relatively limited mobility make simple tasks such as remittancing cash to family in the village a time consuming and non-trivial task.

This author’s position is that the introduction of mobile banking services is having, and will continue to have a disproportionately positive impact on the poor compared to their wealthier counterparts.
What are the needs of the poor in this space? What does it mean to ‘design for inclusion’? And given that growth is largely driven by profit seeking corporations where do the needs of consumers, corporations and other stakeholders diverge?

-Jan Chipchase