In emerging markets, banking facilities are often scarce - particularly in rural areas.
Many people who do not have bank accounts find it difficult or expensive to transfer money through traditional banking services.
In response to this Vodafone has introduced secure, low-cost financial services using mobile networks, including:
- Mobile money transfer.
Known as M-PESA this was launched in Kenya in February 2007. Aimed at mobile customers who do not have a bank account M-PESA enables customers to move money within Kenya by sending instructions via SMS text message to a central server. Over two million customers have registered for M-PESA in Kenya since its launch, with 200,000 more signing up every month on average.
- Airtime transfer.
Trialed in Kenya in 2007-8, the service enables people to send money abroad and collect remittances via their mobile phones.
- Pre-paid bank card.
Launched in Albania, Egypt, Kenya and South Africa, airtime transfer services allow pre-pay customers to transfer call-time value from their phone to that of another customer. This enables them to distribute small amounts of call-time between family, friends and contacts, and helps small businesses to have control over their phone usage.
This is a good example of What a forceforgood company is and How to become one because it shows how a company can develop new business models to deliver tailored services to consumer bases in developing countries.
The initiatives were launched following the commissioning of four independent research studies into the socio-economic impact of mobiles in Africa, which showed that improved economic growth, quality of life and social capital could be generated through access to mobiles.
Original information on the Vodafone website can be found
here.
There is a story about it on the World Changing website
here.