The rapid growth of mobile money in East Africa is a phenomenon which has few precedents in the region’s financial and banking history and has far reaching implications on transactions. Four main areas of focus: The history and growth of Mobile Money; The financial sector; Business; and Influence on transactions
Stanford Africa Forum - Mobile Money and GDPMenekse Gencer
This presentation was given by mPay Connect at the Stanford Africa Forum on January 29, 2011. The presentation describes the impact mobile money will have on the GDP of emerging markets and why. For more information on mobile money, join our ning network: www.mobilemoney.ning.com or check out our website: www.mpayconnect.com
Outline: Tanzanian MFS Landscape: Current Status; Maximizing Opportunities in Tanzania; Mitigating Challenges and Risks in MFS in Tanzania; Pushing MFS to the next level in Tanzania; and Lesson for Africa: Key Take Homes.
The mobile money movement: jumpstart to emerging marketsMenekse Gencer
This presentation will be used for an upcoming webinar where the author of the publication "The Mobile Money Movement: Catalyst to Jumpstart Emerging Markets" will present the findings. This article was published by The Innovations Magazine in June 2011. To register for the event, go to: www.mpayconnectseries6.eventbrite.com
Stanford Africa Forum - Mobile Money and GDPMenekse Gencer
This presentation was given by mPay Connect at the Stanford Africa Forum on January 29, 2011. The presentation describes the impact mobile money will have on the GDP of emerging markets and why. For more information on mobile money, join our ning network: www.mobilemoney.ning.com or check out our website: www.mpayconnect.com
Outline: Tanzanian MFS Landscape: Current Status; Maximizing Opportunities in Tanzania; Mitigating Challenges and Risks in MFS in Tanzania; Pushing MFS to the next level in Tanzania; and Lesson for Africa: Key Take Homes.
The mobile money movement: jumpstart to emerging marketsMenekse Gencer
This presentation will be used for an upcoming webinar where the author of the publication "The Mobile Money Movement: Catalyst to Jumpstart Emerging Markets" will present the findings. This article was published by The Innovations Magazine in June 2011. To register for the event, go to: www.mpayconnectseries6.eventbrite.com
Mobile Money for the Unbanked in Developed MarketsMenekse Gencer
This presentation was given by Menekse Gencer of mPay Connect at the Dubai Mobile Money Transfer Conference October 28, 2009. To learn more about mPay Connect, visit: www.mpayconnect.com
The mobile money movement by mpay connect dec 2010 innovations publication ...Menekse Gencer
The genesis of this publication came from a presentation I gave at Columbia University during spring 2010. This publication was written by Menekse Gencer of mPay Connect, a mobile money consulting firm, and will come out in hard copy with MIT Press Innovations Magazine in 2011. To contact the author: http://www.mpayconnect.com/contact
In 2015, the CGAP-funded Financial Inclusion Insights Survey was conducted in Rwanda by InterMedia. The survey analyzes trends in mobile money usage in the country and highlights opportunities for growth in the industry.
M-PESA is a mobile based transfer of money between customers, facilitated by network of retail agents. Kenya is the first country to have adopted M-PESA where the model witnessed huge success and is contributing big way in enabling financial inclusion in the country. Deployment of M-PESA in India can bring similar benefits as experienced in Kenya. Growing mobile penetration in rural areas would ensure that people are able to benefit from mobile based money transfer concept. Indian regulatory system has also been gearing up to allow technology benefits in enabling financial inclusion, developments are only at introductory stage.
Mobile Money for the Unbanked in Developed MarketsMenekse Gencer
This presentation was given by Menekse Gencer of mPay Connect at the Dubai Mobile Money Transfer Conference October 28, 2009. To learn more about mPay Connect, visit: www.mpayconnect.com
The mobile money movement by mpay connect dec 2010 innovations publication ...Menekse Gencer
The genesis of this publication came from a presentation I gave at Columbia University during spring 2010. This publication was written by Menekse Gencer of mPay Connect, a mobile money consulting firm, and will come out in hard copy with MIT Press Innovations Magazine in 2011. To contact the author: http://www.mpayconnect.com/contact
In 2015, the CGAP-funded Financial Inclusion Insights Survey was conducted in Rwanda by InterMedia. The survey analyzes trends in mobile money usage in the country and highlights opportunities for growth in the industry.
M-PESA is a mobile based transfer of money between customers, facilitated by network of retail agents. Kenya is the first country to have adopted M-PESA where the model witnessed huge success and is contributing big way in enabling financial inclusion in the country. Deployment of M-PESA in India can bring similar benefits as experienced in Kenya. Growing mobile penetration in rural areas would ensure that people are able to benefit from mobile based money transfer concept. Indian regulatory system has also been gearing up to allow technology benefits in enabling financial inclusion, developments are only at introductory stage.
Monetary Policy Communication Challenges, based on Bank of Uganda's experience. A presentation made during the Public Relations Seminar at the Deutch Bundesbank.
You must know media in order to make the media work for you. The media can be an efficiency and effective tool for business growth and development. You can use the media to leverage your business.
East Africa is on track to digitize its financial services with the help of many visionary regulators who have seen the benefit of using the best technology.
In order to reduce cash handling cost of banks amongst other objectives, the Central Bank of Nigeria introduced the ‘cashless policy’. The success of this policy hinges on the adoption of alternative payment systems one of which is mobile banking. Thus it is imperative for policy makers and other relevant stakeholders to anticipate and deal with inhibitions surrounding the adoption of mobile banking by bank customers in the country. This study investigates the determinants of mobile banking adoption in Nigeria using a modified version of Technology Acceptance Model (TAM). This incorporates Perceived Risk, Facilitating Conditions and Demographic Characteristics (Age, Gender, Educational Qualification and Income) to Perceived Usefulness and Perceived Ease-of-Use as determinants of Mobile Banking Adoption. We also propose that this relationship is mediated by attitude towards mobile banking adoption. A total of 250 bank customers from the Lagos area were selected and a structured questionnaire was designed and copies distributed to them. Data was analysed using multiple regression and computed using SPSS 20.0 computer application. Results show that Perceived Usefulness, Perceived Ease-of-Use, perceived Risk, Facilitating Conditions, Age, Educational Qualifications and Income significantly determine Mobile Banking Adoption. However, the relationship between gender and Mobile Banking Adoption is not significant. The outcome of this study has some implications to m-banking policy formulation and implementation. It also throws more light into what should be done to improve mbanking adoption rate in Nigeria
Over the last decade, Africa has become a global leader in mobile money with the rate of smartphone adoption at twice the global scale. But what challenges is the industry facing and how can these be overcome? Our new article, sponsored by Mazars, explores.
STATE OF MOBILE BANKING IN TANZANIA AND SECURITY ISSUESIJNSA Journal
Mobile technology offers an unprecedented growth opportunity for banking industry in Tanzania. As the economy continues to prosper, increasingly affluent consumers and underbanked segments create demand for new financial products and services. Many consumers in Tanzania have mobile phones, but not bank accounts. Therefore, the mobile channel presents an effective way to connect them to the national financial grid. For the local banks, going mobile may increase banks opportunities to unlock the inherent potential of underbanked segments. This paper addresses the current state, future prospects, and security challenges to the usage of mobile banking in Tanzania.
State of mobile banking in tanzania andIJNSA Journal
Mobile technology offers an unprecedented growth opportunity for banking industry in Tanzania. As the
economy continues to prosper, increasingly affluent consumers and underbanked segments create demand
for new financial products and services. Many consumers in Tanzania have mobile phones, but not bank
accounts. Therefore, the mobile channel presents an effective way to connect them to the national financial
grid. For the local banks, going mobile may increase banks opportunities to unlock the inherent potential
of underbanked segments. This paper addresses the current state, future prospects, and security challenges
to the usage of mobile banking in Tanzania.
The majority of the world population is not covered by the mainstream financial sector. As such, mobile money services are seen as a cost effective and efficient way of increasing financial inclusion. However, there remains some factors that impede the development of mobile money services. Therefore, this study sought to analyse these factors with a view to identifying strategies that can be used to accelerate the development of mobile money services.
It is evident that financial services industry has been undergoing a profound transformation in Nigeria. Rapid changes in the banking environment, increased competition by new players from non-banking sector, product innovations, globalization and technological advancement-all these have led to a market situation in which the battle for consumers is intense. We look at the prospect and challenges of mobile banking services in Nigeria using four selected' banks as case study, reviewed prior literatures on mobile banking, analyze the different factors that impact the market, and give direction for future research on this emerging field. A framework of four contingency and five competitive factors were proposed to facilitate the analysis. Factors affecting mobile services in Nigeria such interoperability, unstable power supply, network problems etc. were identified. Finally, we recommended that non–bank led model of mobile banking be adopted by Nigeria banks to make the services transformational instead of additives as is currently being practiced.
It is evident that financial services industry has been undergoing a profound transformation in Nigeria. Rapid changes in the banking environment, increased competition by new players from non-banking sector, product innovations, globalization and technological advancement-all these have led to a market situation in which the battle for consumers is intense. We look at the prospect and challenges of mobile banking services in Nigeria using four selected’ banks as case study, reviewed prior literatures on mobile banking, analyze the different factors that impact the market, and give direction for future research on this emerging field. A framework of four contingency and five competitive factors were proposed to facilitate the analysis. Factors affecting mobile services in Nigeria such interoperability, unstable power supply, network problems etc. were identified. Finally, we recommended that non–bank led model of mobile banking be adopted by Nigeria banks to make the services transformational instead of additives as is currently being practiced.
Acceptance of M-pesa Service and its effect on Performance of Small and Micr...MUTURIPETERGITHAE
A lot of research has been done on the effect of mobile money on efficiency of and outreach of
micro-finance loans in developing countries. Yet to date, there has been limited quantitative tests done to show the factors
driving the acceptance of mobile- money service, and whether the level of acceptance has any significant effect
on the performance of small and micro-businesses in Kenya
Empowering Financial Inclusion _How Micro ATM Are Reaching Rural India .pdfFintechInnovations
Financial inclusion, the accessibility, and availability of financial services to all individuals and businesses, plays a pivotal role in driving economic growth and reducing poverty. While urban areas have seen significant progress in digital financial services, rural communities often remain excluded due to limited access to banking infrastructure. However, technology is bridging this gap, and a key player in this transformation is the use of Micro ATM terminals. These devices are transforming the way financial transactions occur in rural India, enabling digital transactions and empowering financial inclusion.
Analysis on Challenges Small Business Face in using the MBanking/Payment Serv...Dr. Amarjeet Singh
Mobile banking services are at the present
increasingly used to accomplish economic transactions by the
business people who would have followed long processes to
complete their transaction deals. Despite the importance of
mobile banking, several studies indicate that the industry still
faces challenges including lack of awareness among the
business parties and customers. Though large populations of
Kenyans have embraced the new technology in most of their
transactions, the contribution of the new technology on small
scale enterprises has received very little attention from the
scholars. The main purpose of this study was to identifying
and rank the challenges faced by the residents as they try to
embrace the mobile banking services. The study adopted a
survey design where data was collected from selected
respondents. The population of the study comprises of 730
small business enterprises. Simple random sampling technique
was used to select 88 small business enterprises based on 95%
confidence level and accepting 5% margin of error as
recommended for most business and social researches.
Primary data was collected from the respondents. Data was
analyzed by using statistical package for social sciences (SPSS)
and it was presented in the form of graphs, tables and charts.
Analysis of the data revealed that the highest challenge faced
by the business owners was the cost of transaction with a
cumulative percentage of 51.3 as compared with other
challenges.
Similar to Influence of Mobile Money on Transactions in Africa; Focus East Africa (20)
This is a presentation on the impact of communication on business growth.Communication is the pillar on which professional relationships are built. Relating well with your associates, bosses, partners and employees enhances business growth. The presentation was made by Kelvin Kizito, Lead Consultant, Fast Lane Communication, January 19, 2015, during the Rotary Club Mengo, at Pope Paul VI Memorial Hotel, Lubaga, Kampala, Uganda.
Key Message: Effective Communication does not guarantee effective monetary policy, but effective monetary policy cannot be guaranteed without effective communication.
A Presentation made at the IMF –East AFRITAC Workshop on Central Bank Communication Mount Meru Hotel, Arusha Tanzania.
Communication monetary policy, especially under the Inflation Targeting Lite monetary policy framework, poses certain challenges. Bank of Uganda's experience is quite insightful..
Money museums, especially those managed by Central Banks, can be effective tools for monetary policy communication by enhancing economic education and financial literacy.
Influence of Mobile Money on Transactions in Africa; Focus East Africa
1. Influence of Mobile Money on
Transactions in Africa, Focus on East
Africa
Kelvin Kizito Kiyingi
Assistant Director, Communications Department
Bank of Uganda
Cash Cycle Seminar Beirut Lebanon
November 2015
2. 2
The rapid growth of mobile money in East Africa is a phenomenon
which has few precedents in the region’s financial and banking
history and has far reaching implications on transactions.
Main Areas of Focus:
The history and growth of Mobile Money
The financial sector
Business
Influence on transactions
3. 3
History & Growth of Mobile Money
Kenya: 2007 (Safaricom); it is now used by at least 70% of
households
Last year, the value of mobile money transactions was more
than $20 billion.
Tanzania: 2007 (E-Fulusi); (T) Ltd pioneered
Interoperability; across all platforms
September 2013, the Bank of Tanzania reported 30.3 million
registered mobile money users
Uganda: 2009 (MTN);.
Value of mobile transactions about $6 billion
Number of mobile money accounts 18.59 million
Number of account holders in all commercial banks, 6 million
Mobile phone subscribers, banked or
unbanked, deposit value into their mobile
account/virtual account to enable transactions
It is a form of branchless banking
Mobile money is purchased for cash from a
mobile agent.
Once e-value is obtained one can:
Withdraw cash from an agent
Transfer funds, even to unregistered users
Pay bills, for goods and services
Purchase mobile airtime for self or others
ATM withdrawal
Pay salaries, welfare payments
Loan repayments
Foreign remittances
4. 4
Transactions via Mobile Money
Kenya is ranked the
biggest economy in
East Africa with a GDP
of $61 billion
followed by Tanzania
($49 billion),
Uganda ($26 billion)
and Rwanda
($8 billion)
Source:
World Bank statistical
July 2015.
Source: The East African
5. Financial Sector
There is a difference between mobile banking and mobile money
Mali, Pan-African Ecobank partnering with Orange Cameroon to transfer
cash between two services. Four other countries
Nigeria, GT Bank with Etisalat, create GTEasysavers, saving account via
mobile phones.
Kenya, competition between Equitel and Safaricom
In general, banks have entered the fray and offering new services
The financial sector has been revolutionarised
5
6. 6
Participation in the infrastructure bond in
Kenya: 23 million people in Kenya with mobile
money accounts. Ordinary Kenyans given
chance to climb the investment ladder.
Mobile Money as collateral in Kenya and
Tanzania
Transferring money from Rwanda (Francs) to
Uganda (in Shillings) via MTN
Use of several mobile applications like the
“Wave”.
Business
Kenya: M-Pesa agents are more
prevalent per capita than ATMs in the
United States
7. 7
Communication: Tools and Channels
Mobile Money Guidelines issued by Bank of Uganda
Public Education on the use of mobile money
Communications Strategy: Know Your Rights
Regional Sensitization Workshops
Media seminars & workshops
Social Media, Internal communication
Financial Consumer Protection Consultation Group
8. 8
Transactions in East Africa
“Millions of people send and save money with M-Pesa – and it’s a great
idea that started here in Kenya”
In 2014, Consumers in Kenya, Uganda, Rwanda and Tanzania
transacted $45.75 billion through their mobile phones
This is equivalent in value to 32 per cent of their combined gross
domestic product — up from $4.86 billion or 3.4 per cent of GDP in
2009.
In East Africa, there are 24 mobile money service providers across
the region; Safaricom’s M-Pesa is ranked the biggest.
Mobile money is a tool for strengthening social capital in East
Africa, allowing families and friends to share financial burdens.
Mobile money has evolved beyond cash transfers
Source: GSMA Africa
President Barack Obama
Global Entrepreneurship Summit,
Nairobi, 2015
9. 9
Yet to take off in some countries
Poor technology and infrastructure (disruptive innovation):
Flexible regulatory framework, which aims to protect consumers while
allowing innovation.
Central Bank of Kenya and Bank of Tanzania crucial
Microfinance organizations have lowered interest rates due to a
reduction in collection costs via mobile money.
South Africa:
Better developed financial infrastructure
Regulatory regime
First of all, in the absence of a special dispensation for non-banks or
e-money providers (which is the approach taken by the Tanzanian authorities,
for example), payments providers in South Africa are treated as banks and
subject to the full regulatory compliance requirements (and costs) associated
with this.
Why mobile money
has flopped in SA
10. Statistics to consider
The following three slides show the influence of mobile
money in Uganda:
Slide 11: Number of mobile money clients Vs. Number of transactions
Slide 12: Broad Money Vs. Value of mobile money transactions
Slide 13: Annual transactions in mobile money Vs. Uganda National Inter-
bank Settlement System
10
11. 11
Uganda: mobile money users and transactions
Source: Bank of Uganda2.84
28.82
57.3
241.73
399.46
496.25
0.55
1.68
2.61
8.87
14.24
18.59
0
5
10
15
20
25
0
100
200
300
400
500
600
2009 2010 2011 2012 2013 2014
Numberofregisteredcustomers(million)
Numberoftransactions(million) Uganda: Number of mobile money clients and transactions
Number of transactions (millions) Number of registered customers (millions)
Source: Bank of Uganda
12. 12
Source: Bank of Uganda
5,332.44
7,397.65
7,762.54
8,844.41
9,583.00
11,081.07
3.24
14.97
44.65
131.76
178.20
231.92
-
50
100
150
200
250
300
0
2,000
4,000
6,000
8,000
10,000
12,000
2009 2010 2011 2012 2013 2014
ValueofMMtransactionsinbillionsofShillings
BroadMoneyinbillionsofShillings
Broad Money-M2 Value of MM transactions
Uganda: Broad Money and Value of MM transactions in billions of Shillings (2009 – 2014)
Source: Bank of Uganda
13. Annual Transactions in Mobile Money and the Uganda Inter-bank Settlement System
13
153.2
195.7
235.0 227.3
4.5
13.2
19.5 23.2
2.94%
6.75%
8.30%
10.21%
0%
2%
4%
6%
8%
10%
12%
0
50
100
150
200
250
2011 2012 2013 2014
ProportionofMMofUNISS
ValueinShillings(Trillions)
Year
Value of UNISS Transactions Value of MM Transactions ProportionSource: Bank of Uganda
14. 14
In 2014, the value of settlements via the UNISS was UGX227 trillion,
including RTGS; mobile money transactions were UGX23 trillion.
The value of mobile money transactions was equivalent to 10% of UNISS
settlements in Uganda.
In 2014, Broad Money was UGX11 trillion, mobile was UGX231.92 billion,
which is about 2% of Broad Money.
It is impossible to measure transactions made in cash
Therefore, mobile money is much more important as a medium of
exchange than a store of value.
Conclusion
15. 15
But I think that we are probably still only at
the beginning of the transformation which
mobile banking will create in our economy
and society.
-Prof. Emmanuel Tumusiime-Mutebile,
Opening Remarks, February 2015
The rapid growth of mobile money in East Africa is a phenomenon
which has few precedents in the region’s financial and banking history
and has far reaching implications.
History & Growth: Impressive growth
The financial sector: The writing is on the wall
General public: Paying for utilities in smaller quantities
Impact of Mobile Money: is an important medium of exchange.
However, not yet very important as a store of value; cash is still
king.
Recap