This document discusses the potential for mobile money products for youth and children in Africa. It provides background on the growth of mobile money across Africa, where mobile money accounts now outnumber bank accounts in many countries. The document then discusses challenges in developing mobile money for youth, as child-friendly accounts have not been linked to mobile platforms and regulations are limited. However, it outlines possibilities for mobile money to be used by students, including allowing access to proxy accounts while out of school. Developing mobile money for youth will require partnerships between various organizations and education efforts.

1. Mobile Money for youth & children?
So close, yet so far!
Aflatoun International meeting
July 2013
Tonny Omwansa, PhD
University of Nairobi
@tomwansa

2. • “Book tells a tale of
innovation, disruption,
and transformation”
• A comprehensive book on
mobile money innovation
in Kenya and beyond!

3. Background
- 50% of the adult’s world population is unbanked
- 75% of the worlds poor is unbanked
- Mobile penetration is in the tune of 80%+ across the world
- Models:
- Telco Led (dominant),
- Bank Led,
- Hybrid,
- Independent
- Bank account is optional

4. Background
- People interpret mobile money in multiple ways:
- Accessing core bank accounts
- Money transfer
- As a store of e-money
- Mobile payments
- Mobile wallets
- Become a sophisticated financial grid

5. Background
African mobile connections and penetration rates
Economic
Development
Wireless intelligence, ATKearney, GSMA
pre-paid
Services
significant
price reductions
low-
cost handsets
Rollout of
mobile network

6. Background
Drivers of MM adoption
High
penetration
of mobile
phones
Aggressive
MM
providers, p
articularly
MNOsLimitations
of a cash
society
Huge
demand for
domestic
money
transfers
Less
developed
formal
financial
sector
Demand for
services
beyond P2P
Large agent
network for
cash-in-cash-
out
Trusted
brands gain
traction
faster
Transaction
cost
Flexibility
and
convenience

7. Background
 The poor struggle to save and achieve lump sums
 The poor deal with irregular, small and unpredictable incomes
 The poor and un-banked live sophisticated financial lives
 They need appropriate financial services, not just formal.
We have learnt about the poor
E-money loop is generally short for the poor
Mobile money is only a channel, bundling it with a service or
product is crucial to the poor
Telco-led financial services are more flexible

8. Uptake
• More mobile money accounts than bank accounts
[Kenya, Uganda, Tanzania and Madagascar…]
• More mobile money agents than bank branches
[>28 countries in SSA]
• More MM users than twice number of FB users in SSA
• Most SSA countries have MM deployments
[34 of the 47 countries]

9. Uptake
• Daily MM transactions in Kenya outnumber Western Union
transactions globally
• Kenya's financial inclusion levels now at 80%, with mobile
money contributing 57%
[CBK Reports]
• Day before the schools open, is the busiest day of M-Pesa
• The largest single client of M-Pesa is a group of schools

10. Innovations
Bill payments
Fund Raising
Micro-Credit
Micro-Loans
Pay-as-you-go
Lease-to-own Mobile Layaway
Micro-Insurance
Micro Savings
P-2-P
Airtime
B-2-P
P-2-B
Payments Aggregation

11. Developments
Discussion on child friendly MM product in advanced stages
Several financial institutions launched child friendly products
Interest to conduct research on youth & mobile money growing
School bank projects being piloted

12. Challenges
Not much published on youth and mobile money
Child friendly accounts have not linked to mobile
Need for identification to register a mobile phone & transact
Regulatory discussion for children mobile money is limited

13. Making it happen/possibilities
• Must invest to understand financial lives of the target market
• Must segment and develop unique strategies for different
markets and contexts
• The youth and kids receive and spend money, but we do not
entirely understand their money patterns
• Institutions receive and keep money on behalf of students (can
be done by mobile)

14. Making it happen/possibilities
• While out of school, the students can access their proxy accounts
through mobile
• It going to take partnerships/synergy between telcos, financial
institutions, academic institutions, NGOs, youth groups, educators
• Its going to take serious education and awareness

15. Thank you!
Aflateen conference, July 2013
Tonny Omwansa, PhD
University of Nairobi
@tomwansa