09 October 2015

Mobiles to bank the unbanked

28 June 2011  |  8533 views  |  0 mobile keypad

Mobile financial services have the potential to reduce the number of unbanked people in developing countries by up to a fifth and increase GDP by five per cent within ten years, according to a study commissioned by telco Telenor.

According to the research, carried out by Boston Consulting Group, there are over 2.5 billion adults in the developing world who are unbanked - 72% of the population. Yet the same number have mobile phones, providing an opportunity to bring financial services to around two billion.

The study focuses on five countries; Pakistan, India, Bangladesh, Serbia and Malysia, concluding that mobile money services will drive financial inclusion, increase economic growth, create jobs and help the poorest in society.

It suggests that mobile financial services may reduce the number of unbanked in Pakistan by 20% by 2020. In India the number of people with formal savings accounts could increase by 142 million and in Bangladesh tax revenues could be boosted by US$500 million.

In Serbia the technology could lead to 23,000 new jobs being created while in Malaysia economic inequality could be reduced by five per cent and become roughly equivalent to that of Canada today.

Jon Fredrik Baksaas, CEO, Telenor, says: "We believe that mobile financial services will be one of the key drivers for financial inclusion going forward and thus has the potential to be the most powerful tool for economic and social development in emerging economies."

Read the full report here:» Download the document now 2.7 mb (PDF File)

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

24 June, 2011
09 June, 2011
03 June, 2011
12 May, 2011
12 January, 2011
10 September, 2010
15 September, 2009
24 April, 2009
17 February, 2009
13 February, 2009

Top topics

Most viewed Most shared
European Parliament rubberstamps Payment S...
8442 views comments | 44 tweets | 56 linkedin
Faster Payments eases access for challenge...
4962 views comments | 20 tweets | 25 linkedin
Chinese hackers breach LoopPay
4821 views comments | 8 tweets | 6 linkedin
From biometrics to one-time passcodes, Mas...
4483 views comments | 12 tweets | 18 linkedin
Hacker slams Danske Bank for alleged secur...
4453 views comments | 7 tweets | 8 linkedin

Featured job

up to £95K base, £190K OTE, benefits
London, UK

Find your next job