MTN Uganda, the Consultative Group to Assist the Poor (CGAP) and Grameen Foundation have announced plans to introduce a new initiative to research and develop mobile financial products for the poor.
This partnership was reached during the world mobile congress held in Barcelona, Spain, according to a company statement. CGAP is an independent policy and research center dedicated to advancing financial access for the world’s poor.
MTN Uganda Chief Executive Officer Mr. Themba Khumalo explained his company will continue to be innovative and relevant, particularly with increasing competition in the global market.
“This partnership will ensure that we are able to address the needs of our customers in the rural market by enabling them to access otherwise inaccessible financial services. This in turn will ensure that the rural poor have better access to other social services, such as education, health and investment opportunities,” noted Khumalo.
He said the aim is to build up the extensive research already conducted through Grameen Foundation’s Application Laboratory (AppLab) in Uganda and to leverage MTN’s successful mobile money services.
As a result of the joint venture the telephone giants and Grameen Foundation will provide US$1 million in financing to this initiative.
“Access to financial services can help the poor smooth their income and invest in productive assets, education and health services.
“However, 2.7 billion people most of whom live in developing countries still do not have a bank account. This gap is due to two major challenges: Many low-income communities are underserved by financial institutions, and the products offered by these institutions are more suitable for higher-income clientele,” he added. Khumalo indicated the goal of the initiative is to drive the next wave of innovation in the mobile money space by researching and developing products that are both appropriate for poor clients and commercially viable for the financial service providers involved.
CGAP CEO Tilman Ehrbeck believes to achieve the goal of financial inclusion for all, the industry needs to move beyond mobile payments and provide a full array of pro-poor mobile financial products.
“The growth of mobile money is helping address the access issue, but there is still a need for product offerings that are appropriate for low-income consumers.”
President and CEO of Grameen Foundation Alex Counts noted that the collaboration with CGAP and MTN Uganda will enable them to lead the next wave of product innovation to truly serve poor people’s needs.
This partnership was reached during the world mobile congress held in Barcelona, Spain, according to a company statement. CGAP is an independent policy and research center dedicated to advancing financial access for the world’s poor.
MTN Uganda Chief Executive Officer Mr. Themba Khumalo explained his company will continue to be innovative and relevant, particularly with increasing competition in the global market.
“This partnership will ensure that we are able to address the needs of our customers in the rural market by enabling them to access otherwise inaccessible financial services. This in turn will ensure that the rural poor have better access to other social services, such as education, health and investment opportunities,” noted Khumalo.
He said the aim is to build up the extensive research already conducted through Grameen Foundation’s Application Laboratory (AppLab) in Uganda and to leverage MTN’s successful mobile money services.
As a result of the joint venture the telephone giants and Grameen Foundation will provide US$1 million in financing to this initiative.
“Access to financial services can help the poor smooth their income and invest in productive assets, education and health services.
“However, 2.7 billion people most of whom live in developing countries still do not have a bank account. This gap is due to two major challenges: Many low-income communities are underserved by financial institutions, and the products offered by these institutions are more suitable for higher-income clientele,” he added. Khumalo indicated the goal of the initiative is to drive the next wave of innovation in the mobile money space by researching and developing products that are both appropriate for poor clients and commercially viable for the financial service providers involved.
CGAP CEO Tilman Ehrbeck believes to achieve the goal of financial inclusion for all, the industry needs to move beyond mobile payments and provide a full array of pro-poor mobile financial products.
“The growth of mobile money is helping address the access issue, but there is still a need for product offerings that are appropriate for low-income consumers.”
President and CEO of Grameen Foundation Alex Counts noted that the collaboration with CGAP and MTN Uganda will enable them to lead the next wave of product innovation to truly serve poor people’s needs.
Source: East African Business Week