How Cellphone Technology Can Mobilise Microfinance

Can mobile phones lower the cost of microfinance?
Download 19 pages

This presentation, commissioned by the mobile network operator, Vodafone, describes how cell phone technology can mobilize microfinance. It focuses particularly on Vodafone's M-Pesa Project, located in Kenya.The presentation details the:

  • Main features of Vodafone;
  • Advantages of using a mobile phone;
  • M-Pesa project, that aims to:
    • Improve the efficiency of microfinance by using mobile technology to make transactions faster, cheaper and more secure;
    • Create a mobile-enabled version of an existing microfinance system, by partnering with Kenyan businessmen;
  • Transaction types that M-Pesa can support;
  • Expected benefits like:
    • Consumer convenience;
    • Security;
    • Real time view of cash flow;
    • Reduction in the costs of the microfinance institution.
  • Status of the Microfinance-Pesa business trial that is being held in various provinces of Kenya;
  • Challenges faced by this technology:
    • Need to fine-tune the technology;
    • Business processing, and training the consumers and the regulator.

The presentation concludes with a look into the future and identifies:

  • Further concepts to be launched in Kenya;
  • Other countries that are interested in the concept;
  • The goal of low-cost international remittances.