Mobile Money and Consumer Financial Health
In 2020, despite a severe global economic downturn more than $2 billion was transacted every day through mobile money. With more people than ever using these services, mobile money providers (MMP) have highlighted that enabling robust financial health of their consumers is increasingly integrated into their products and services.
The idea of financial health is increasingly relevant to MMP’s objectives. Whilst not explicitly defined as a relatively nascent field, "financial health" can be considered as a consumer's capacity to:
- Manage day-to-day finances.
- Meet future financial obligations.
- Be financially resilient (e.g. to shocks).
- Pursue financial goals.
- Feel confident in their financial future.
This paper explores key risks to consumer financial health relating particularly to low-to-middle-income countries where mobile money is most prevalent, and how the mobile money industry stakeholders are addressing these through best practice examples.