Skip to main content

Mobile Financial Services Upside in Emerging Markets

Across the globe, millions of people don't have a bank account -- they're the 'unbanked' masses. Mobile Financial Services (MFS) are alternative financial instruments that allow individuals, without an account at a traditional banking institution, to engage in financial activity via their mobile device -- such as a low-cost smartphone or media tablet.

Since the inception of 'mobile money' services from the telecom provider in Kenya over ten years ago, these solutions have been instrumental in enabling financial inclusion in emerging markets, where large segments of the population have been unserved, or underserved, by traditional banks.

Mobile Financial Services Market Development

With the ability to reach anyone who owns a mobile device and the benefit of rolling out cost-effective agent networks, MFS players have managed to fill a gap which has been a challenge for traditional financial institutions within emerging markets.

According to the latest worldwide market study by Juniper Research, the total transaction value of the MFS market will exceed $1 trillion by 2024 -- that's rising from $580 billion of current transaction value in 2019.

This is a growth of 70 percent and equally promising as the fintech market in mature markets. The upside potential for MFS is significant. Juniper analysts identified a range of untapped opportunities in Latin America for services such as microfinance, microloans and money transfer, as a key driver of MFS growth over the next five years.


Juniper forecasts that the total number of users accessing MFS in Latin America will grow 20 percent on average annually over the next five years. This is predicted to grow twice as fast as saturated markets such as Africa and the Middle East.

In response to the findings of their study, Juniper has urged the mobile financial service vendors to leverage the existing relationships and launch new innovative services in these underserved markets.

It also forecasts that the number of MFS users in all emerging markets will reach 1.2 billion by 2024 -- growing from 890 million in 2019. Africa and the Middle East will account for over 600 million users alone by 2024 -- owing to the high reliance on mobile devices for banking services.

Outlook for MFS Growth in Emerging Markets

According to the Juniper assessment, CICO (Cash In, Cash Out) transactions will be the largest driver of growth for the MFS market -- exceeding a value of $590 billion by 2024. CICO allows users to access traditional banking services, such as deposits and withdrawals, via mobile devices.

Juniper has also encouraged MFS providers to expand their agent networks to rapidly grow their customer bases. It also forecasts that fostering confidence amongst users for CICO transactions will lead to the increased adoption of more comprehensive MFS products, such as microloans and microinsurance, in the future.

Popular posts from this blog

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c