New Vision Reports on Mobile Monday Financial Inclusion Meeting
Posted on: April 12, 2011 – Filed under: Kampala
TELECOM operators and related service providers have been challenged to grab the opportunity in the low telecom and mobile money penetration by partnering and addressing the everyday needs of ordinary Ugandans.
While the mobile money services offered through the mobile phone has emerged as a revolutionary service especially among the poor, the entire geographical divide of the country is yet to gain full access.
Uganda today has 325 banking outlets or about 750 including ATMs. With a population of about 33 million, it means the banks are serving just 18% or 5.4 million of the population including customers to microfinance institutions and SACCOs, according to reports.
Mobile phone telecommunication is at about 35% only meaning out of every 100 people, only about 35 people have mobile phones which represents new opportunities for growth of the mobile money and other products through the mobile phone.
“We need to understand something about the financial lives of the poor people and the first thing is their income is very low,” said Mark Pickens, CGAP executive, a technology programme agency.
Pickens said low income people are incredibly active money managers who seek several options for putting their money because they don’t have specific formal options. Pickens was part of a panel presenting at the monthly Mobile Money meeting s at Nyonyi Gardens on Monday.
Mobile phones have evolved in a few years to become tools of economic empowerment for the world’s poorest people across Africa. Tamara Cook, programme officer at the Bill and Melinda Gates Foundation said operators, banks and aggregators should each specialise in what they do best and then value partnerships so they can “grow the pie” for everybody.
Deo Kateizi, corporate affairs manager Pride Microfinance said it is important that banks and operators maintain a partnership because the service of mobile commerce should go beyond just moving money.
Anthony Katamba, MTN Uganda company secretary said discussions on a regulatory framework for mobile money are ongoing that should ensure the industry is well regulated.
Olga Morawczynski said mobile money service should start to fulfill the most pressing needs of the ordinary people.
“Lets go beyond payments, lets ask what do most Ugandans do and what are their financial practices,” said Morawczynski.
MTN launched its mobile money service in March 2009. Today MTN has 2,500 agents around the country and has 1.6 million customers. The other operators Airtel and UTL also have mobile money platforms.
For more details: http://www.newvision.co.ug/detail.php?mainNewsCategoryId=9&newsCategoryId=32&newsId=750622