Electronic and mobile payments: Financial Inclusion for the Unbanked www.e-asia.org
Introduction <ul><ul><li>Financial Inclusion  is the delivery of financial services at affordable costs to sections of dis...
Why Financial Inclusion through MFS? <ul><ul><li>There is strong evidence that financial inclusion is positively associate...
Where is the potential to begin? Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Gr...
Benefits to the individual  Economy and Society Source: The Socio-Economic Impact of Financial Services Study by The Bosto...
Proven indications of MFS <ul><li>In Pakistan, during floods, EasyPaisa  used its platform to solicit  and distribute dona...
Mobile Financial Services  in Bangladesh <ul><li>MFS can significantly increase access to formal financial services in Ban...
Realizing the Need of and appropriate Environment <ul><li>The need of the people and the demand in the market  should driv...
Aspirations for the future <ul><li>MFS will augment the realization of the government's vision for 2021 laid out in the &q...
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Electronic and mobile payments financial inclusion for the unbanked rony riad rashid

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  • Fully banked : meaning they are able to take advantage of a full range of financial services (including savings, insurance, credits and others);
  • Forrester, Gartner
  • Sources: Forrester
  • Forrester, Gartner
  • Forrester, Gartner
  • Electronic and mobile payments financial inclusion for the unbanked rony riad rashid

    1. 1. Electronic and mobile payments: Financial Inclusion for the Unbanked www.e-asia.org
    2. 2. Introduction <ul><ul><li>Financial Inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of the society </li></ul></ul><ul><ul><li>Electronic and mobile payments are financial transactions that are initiated and terminated via computer networks and internet (e-payment) or via a mobile phone (m-payment) </li></ul></ul><ul><ul><li>72% of the population (2.5 B) in the developing world in the APAC region </li></ul></ul><ul><ul><li>are unbanked </li></ul></ul><ul><ul><li>Nearly 2.5 billion people in developing countries of the APAC region </li></ul></ul><ul><ul><li> have mobile phones. </li></ul></ul><ul><ul><li>Bangladesh currently has a 55% financial inclusion rate with 16 % being fully banked, and 39% being underbanked, with only basic access, such as a savings account. </li></ul></ul><ul><ul><li>Bangladesh’s inclusion rate is extremely high given its current level of economic development in comparison to other developing countries </li></ul></ul><ul><ul><li>Penetration of key services in MFS sector is nearly nonexistent. </li></ul></ul>Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    3. 3. Why Financial Inclusion through MFS? <ul><ul><li>There is strong evidence that financial inclusion is positively associated with attainment </li></ul></ul><ul><ul><li>of key economic and social goals </li></ul></ul>Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    4. 4. Where is the potential to begin? Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    5. 5. Benefits to the individual Economy and Society Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group Social Impact on Society Social Benefits for Society -Reduces Inequality -Increased transparency -Reducing risk of leakage, fraud, corruption culture in Society ‘ www.e-asia.org Benefits for the individual -Access to information and reliable medium of transaction -Increased security -Greater productivity through convenience Economic Benefits for Society -Entrepreneurship and job creation -Formalization of funds, government revenues -Facilitate e-government, reduce cost of disbursing aid -Reduce cost of financial transaction s
    6. 6. Proven indications of MFS <ul><li>In Pakistan, during floods, EasyPaisa used its platform to solicit and distribute donations </li></ul><ul><li>Kenya’s MPesa’s UAP Insurance insures poor farmers through mobile phones against weather induced crop failures </li></ul><ul><li>Smart Money in Phillipines has created a new level of trust in people for a more secure means of transaction. </li></ul><ul><li>In Bangladesh Cellbazar has already created a virtual marketplace and recognised as a means of buying and selling </li></ul>Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    7. 7. Mobile Financial Services in Bangladesh <ul><li>MFS can significantly increase access to formal financial services in Bangladesh, given an appropriate ecosystem </li></ul><ul><ul><li>Bill payment users could increase by 22M by 2020 </li></ul></ul><ul><ul><li>Formal savings users could increase by 30M by 2020 </li></ul></ul><ul><ul><li>Formal credit users could increase by 12M by 2020 </li></ul></ul><ul><ul><li>Insurance users could increase by 3M by 2020 </li></ul></ul><ul><ul><li>Formal remittance service users could increase by 39% </li></ul></ul><ul><ul><li>MFS helps unbanked access the financial services they need </li></ul></ul><ul><ul><li>MFS will enable time and cost savings both for rural and urban users </li></ul></ul><ul><ul><li>New business activity could create 0.5M new jobs by 2020. Translates into jobs </li></ul></ul><ul><ul><li>for 1 in 9 unemployed today </li></ul></ul><ul><ul><li>MFS could increase tax revenues US$ 0.5B by 2020 </li></ul></ul>Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    8. 8. Realizing the Need of and appropriate Environment <ul><li>The need of the people and the demand in the market should drive such shift in technology advancement </li></ul><ul><li>An ideal Mobile Financial Services will only work well if an efficient ecosystem including regulations, business model planning, distribution networks and consumer education are in place </li></ul><ul><li>This is just the starting point – with proper awareness, customer education and building of trust, MFS will grow and manifest its benefits in the near future providing a positive impact to economy and society. </li></ul>Source: The Socio-Economic Impact of Financial Services Study by The Boston Consulting Group www.e-asia.org
    9. 9. Aspirations for the future <ul><li>MFS will augment the realization of the government's vision for 2021 laid out in the &quot;Charter of Change“ </li></ul><ul><li>Eventually MFS will grow and make financial inclusion a reality for the billions of poor in the developing world. </li></ul><ul><li>In the long term, MFS will bring financial services to the footsteps of the unbanked in the world and revolutionize the use of financial services and cutting edge technology by them. </li></ul>The question now is not weather we want to implement Mobile Financial Services rather HOW FAST WE CAN GET THERE www.e-asia.org
    10. 10. www.e-asia.org

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