Mobile MoneyProduct InnovationDriving financial inclusion through research and development Lisa Kienzle Grameen Foundation’s AppLab Money March 8, 2012
70% of adults in Kenya Less than 10% of mobileuse M-PESA – phone banking customersdemonstrating that the are poor, new tomobile channel can banking, and doingsuccessfully reach poor anything more than
Few providers have moved beyond payments in their product offering ~100% offer standard payments 120 38% # operators offering the 100 provide other payment types 29% product type 80 enable interaction 60 with financial institutions 10% facilitate 40 loans 4% offer 20 insurance 0 Traditional Other Bank Credit Insuran Payments Payments Linkage ce (Transfer, Bill Pay, Airtime) Payments Beyond PaymentsSource: GSMA deployment tracker, November 2011.
So why aren’t we seeing more innovation? People don’t buy products – they buy solutions.
How do we drive innovation?In villages inUganda,the entireeconomy isdriven by theagriculturalcycle.
How do we drive innovation? Education is an untouchable expenditure.
Insights arise from close studies of the end-userOne of the largest schools inUganda… but not using mobilepayments.
Insights arise from close studies of the end-user No stress, no more lines, pay instantly anywhere, anytime – but not being
So why aren’t we seeing more innovation? The payments process is not the pain point for the poor – facing big expenses during low earnings cycles is.Make saving for A savings sub-wallet – money isschool fees painless diverted every time airtime isand secure purchasedHelp customers plan Create an annual mobile education fund – your phone prompts you tofor the expenses put away more in harvest times, less otherwiseIncentive early For early payers, 1 individual perpayment, when cash region awarded annualis available “scholarship”
Insights arise from close studies of the end-userwww.grameenfoundation.applab.org
So why aren’t we seeing more innovation? Let’s make a quarter-inch hole.