Mobile banking could reach 2 billion unbanked consumers, report says
Norwegian mobile communications company Telenor Group released a new study examining the effects that mobile money will have on the unbanked. The study, called "Socio-economic impact of mobile financial services," predicts a staggering 2 billion people who are currently unbanked could have access to basic financial services through mobile devices.
"The mobile phone is emerging as a key tool for bringing financial services to unbanked populations," Telenor Group President and CEO Jon Fredrik Baksaas said in the announcement of the study. "It allows users to complete basic payments and remittances via the mobile phone, and have easier access to savings, credit and insurance products."
Baksaas said telecommunications companies like Telenor have an advantage in bringing mobile financial services to the unbanked since they are already trusted in their operating regions, have large and secure distribution networks, and an established relationship with customers.
The study, which was conducted for Telenor by Boston Consulting Group, looks specifically at the economies of Pakistan, Bangladesh, India, Serbia and Malaysia and examines how mobile financial services could impact those markets in the next decade. The predictions are astounding. In India, it is predicted the number of people with formal savings accounts could increase by 142 million. The report predicts Bangladesh could increase tax revenues by US$500 million and Serbia's economy would see 23,000 new jobs thanks to mobile financial services. The report forecasts that mobile banking could account for a GDP increase of up to five percent in the five countries within the next decade and reduce the number of the unbanked by five to 20 percent.
"We believe that mobile financial services will be one of the key drivers for financial inclusion going forward and thus has the potential to be the most powerful tool for economic and social development in emerging economies," Baksaas said in the announcement.
Telenor has operations in 11 countries with partnerships in an additional 20 markets.