Skip to main content

Mobile Financial Services Upside in Emerging Markets

Across the globe, the mobile phone is one of the most important technology advancements for developing nations, as an enabler of economic growth. In fact, many of these emerging countries have already seen a rapid adoption of mobile remittance.

Very basic money transfer services can help fuel a local economy. According to the World Bank, there are 80 countries where less than 50 percent of the adult population has a bank account. Mobile money transfers can provide financial inclusion for those un-banked and under-banked citizens.

The total transaction value of Mobile Financial Services in emerging markets  -- including domestic money transfers, deposits on loans, insurance products, and savings accounts -- will approach $500 billion in 2021, that's up from an estimated $198 billion in 2016.


Mobile Money Service Market Development

Juniper Research discovered that by introducing insurance offerings, mobile network operators had the opportunity to substantially reduce customer churn levels. They cite the example of Telenor Suraksha life insurance in India, which has seen nearly 50 percent of its 45 million user base sign-up for these services.

"The model underpinning the Surakhsa scheme -- requiring consumers to top-up airtime on a monthly basis to receive the insurance cover -- should be widely replicated. It enables operators to maintain average revenue levels within low-income, low-ARPU prepaid environments and allows consumers to reap the benefits of micro-insurance," said Lauren Foye, analyst at Juniper Research.

However, the research cautioned that tailoring basic financial service products to the markets is often a challenge. Juniper analysts believe that several early implementations of mobile financial services -- in markets such as India, the Philippines and Nigeria -- achieved limited adoption because offerings were not aligned well with local consumer needs.

Nevertheless, the research highlighted the Asia-Pacific region -- which is currently under-served due in part to the complexity of national regulations -- as having strong upside growth potential for new product launches.

While restrictions have been in place previously, largely due to cultural beliefs, Juniper found that attitudes are changing in under-served regions, with Indonesia acquiring its first ever microloans product in 2017.

Additionally, specialized products have been launched to address religious or cultural requirements, such as Achuwat in Pakistan which provides interest-free loans to meet Sharia law requirements.

Popular posts from this blog

How Savvy Pioneers Lead the Future of Work

Hybrid and fully remote work are inevitable in the Global Networked Economy where high-performance talent demands flexibility from employers. To enable these progressive work models, organizations are investing in a wide range of technologies to support more agile types of employment.  According to the latest worldwide market study by International Data Corporation (IDC), leading organizations will spend nearly $1 billion on the Future of Work (FoW) in 2023 -- that's an increase of 18.8 percent over 2022. Future of Work Market Development "Work models continue to evolve, but 37 percent of decision-makers in a recent global survey note that Remote and Hybrid work models will be an embedded part of accepted work practices, supported by a continued shift to the cloud, increasingly instrumented and interconnected physical workplaces, and intelligent digital workspaces," said Holly Muscolino, group vice president at IDC . According to the IDC assessment, organizations must mak

Human Resource Transformation Enabled by IT

Many senior executives are taking a proactive approach to digital business transformation in order to achieve their strategic goals. Delivering revenue growth and profitability is now imperative for every function, including Human Resources (HR). The top 3 priority HR technologies this year are skills management, learning experience platforms, and internal talent marketplaces, according to the latest worldwide market study by Gartner. "With a tumultuous global economy, HR technology leaders face a balancing act in 2023," said Sam Grinter, director at Gartner . "Leaders must anticipate greater levels of accountability and demand for measurable outcomes to justify new technology investments." HR Transformation Market Development Forty-four percent of HR leaders report driving better business outcomes is their number one strategic priority for HR technology transformation over the next three years. Growth in headcount and skills (26 percent) and cost optimization (17 p

Global EV Charging Revenue to Exceed $300B

During 2022, fuel prices increased very quickly, partly due to a number of macroeconomic reasons. In fact, the effects of the global COVID-19 pandemic are still impacting fuel prices, with many oil refineries having reduced capacity due to a prior fall in demand. Those significant events and other trends have created a demand for a growing variety of Electric Vehicles (EVs). While EVs have existed for decades, they really became a viable option for more consumers during the past five years. However, although EVs are suitable for some buyer needs, their usability is constrained by the current availability of battery charging infrastructure. EV Charging Market Development According to the latest worldwide market study by Juniper Research, revenue from electric vehicle charging will exceed $300 billion globally by 2027 -- that's up from $66 billion in 2023. Regardless, the Juniper analysis found that fragmentation in battery charging networks is restricting further EV adoption in some