On LinkedIn, I recently uploaded a post that had a graphic recording themed on the discussion of mobile banking unpacking challenges, opportunities, the pillars of the ecosystems and the key stakeholders in the markets. It was a piece of art and knowledge that was created about 4- 5 years ago, and however powerful the discussions in the room, the micro-themes still echo the non-silver bullet industry that’s catapulted Africa’s invitation to the global seat of innovation, and particularly financially inclusion. Although the hotbed of the financial inclusion conversation is mobile money in Africa, in this article we’ll explore and propose ways to continue enhancing the distribution mechanism of mobile to employ an economically inclusive society.
Exploring Mobile Money Mission
It was not so long ago when MPESA launched in Kenya, and successfully so that not only did it grant Africa the opportunity to drive the mobile money conversation and allow the unbanked to access financial products but, for some, create and enhance digital footprint, and a chance to be economically active.
Traditional banks notoriously have, for a long time created financial products that were only accessible to the middle class and above, those who were already economically empowered. In the exclusivity of these financial products, the role of startups, data (open or big) and technology became important in leapfrogging the traditional banking industry and getting credit right. The rise of the living standard in emerging markets also created an opportunity for the mobile economy to continue to thrive, whether with an Android phone or if you’re living in the townships.
Who Gets to Participate?
According to research by the PEW Research Center, in emerging economies, the population in some of the poorest communities do have access to a mobile phone, even though the ownership is not of a smartphone. What this does, is that it gives rise to Opening Demand so that the non-digitally savvy citizens may participate, and Supply Inclusion for manufactures, such as now, the new smartphone manufacturer in Africa with the Mara Phone Project.
Mobile money products bank on the vision of a society where the individuals are economically active and visible, from women owned businesses who in some economies didn’t have access to credit to spaza shop owners and the super paranoid cashless user. And in doing this, it is also giving them a digital footprint, and an identity that is tailored for edifying their lifestyles as well as their businesses and financial products.
However, the cost of this inclusion also comes with its own price for the service providers, which includes finding ways to enhance the user and experience centric for the customer.
The Cost of Digitisation, for the Supplier
The high level of customisation to operate in data-lite countries, where data is not enriched and infrastructure is needed to augment results is quite costly. At this moment, this is where the call to government to participate in the market is quite loud in knowledge sharing spaces like conferences and roundtable discussions – an opportunity to serve its citizens better, create more competitive markets and empower lessening the digital divide.
Looking at creating cheaper solutions will cost spend of engineering and predictions analytics, investing in more talent, having the processes to refine the data in order to have more value, the urgency to transform through infrastructure and the list goes on to be an enabler. The return on investment in this cost is not in just the adoption of more products, but also in customers being better informed and better buying customers.
What’s In It For Me, the Consumer?
For a customer like myself, I’m constantly looking for ways to continue leaving my credit and debit cards at home and having my own money market on my phone. The question of “What’s In It For Me?” is what’s constantly at the back of a consumer’s head, whether one has a mobile phone that’s a smart or feature phone – all phones matter.
For the smartphone user, products like Whatsapp, Google Suite, UBER, Booking.Com and BiNu or Facebook which states that 94% of its 170 million African users access the platform via mobile, and with even 100% of the Nigeria population accessing it through mobile. And for feature phone users, products like Mobile Banking, Bwenzi Lathu, JUMO, Kopah Doh or Telecommunications Services are also what make this particular phone a market of the present and future.
While we wait on the digital divide to close and for an all inclusive society, let’s be mobile and invite stakeholders to continue creating enabling ecosystems and environments to innovate for a thriving present and future mobile market.