Using Technology to Build Inclusive Financial Systems
Innovative use of information and communications technologies to inexpensively process a large volume of small transactions and deliver a wide range of financial services may help to make microfinance institutions (MFIs) more efficient and commerci...
| Main Authors: | , , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/04/10404315/using-technology-build-inclusive-financial-systems http://hdl.handle.net/10986/9623 |
| Summary: | Innovative use of information and
communications technologies to inexpensively process a large
volume of small transactions and deliver a wide range of
financial services may help to make microfinance
institutions (MFIs) more efficient and commercial banks more
interested in serving poor people. Falling hardware costs
and growing support infrastructure are making these
technologies increasingly available. From 1999 to 2004, the
number of mobile subscribers in Africa grew from 7.5 million
to 76.8 million. Besides reducing delivery costs for banks,
poor people may ultimately prefer using these channels
because they are inexpensive and convenient. Many who are
unbanked now may gain access to financial services for the
first time. In a recent CGAP survey, 62 financial
institutions in 32 countries report using technology
channels, such as automated teller machines (ATMs), point of
sale (POS) card readers, and mobile phones, to handle
transactions for poor customers. Some are using new
technology to better serve existing customers; others hope
to reach new clients in areas where setting up a bank branch
may be too costly. In Brazil, private-sector banks, such as
Banco Bradesco and Lemon Bank, and state-owned banks such as
Banco do Brasil and Caixa Economica Federal, have developed
about 30,000 so-called 'banking correspondents.'
Lottery outlets, post offices, supermarkets, grocery stores,
petrol stations, and other retail outlets act as agents for
the bank, using POS terminals or PCs to distribute a range
of banking services, such as savings, credit, money
transfers, insurance, and government benefit distribution.
Using this approach, Brazilian banks opened about 10 million
new current accounts since 2000. |
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