OkCBP

Mobile money
meets needs of unbanked
Mobile commerce is creating a new
financial ecosystem to address the
needs of the world’s unbanked
population, creating unprecedented
opportunities for inclusion.
The World Bank reports that some 2.5
billion people are unbanked, the majority
in emerging markets and developing countries.
And yet 70% of the world has access
to a mobile phone.
Studies show that broader participation
in the financial system can reduce income
inequality, boost job creation and directly
help people better manage risks and
absorb financial shocks.
Mobile financial services can also
empower marginalized groups such as
rural women by providing the confidentiality
and convenience they require. In developing
countries 37% of women have access
to a bank account compared to 46% of men.
Ericsson is driving the next generation
of mobile commerce development by connecting
banks, operators, money transfer
organizations, and payment and loan providers.
This industry-leading work is creating
a more flexible, transparent and open
financial ecosystem that helps key stakeholders
speed the launch of mobile financial
services to drive financial inclusion.
One m-wallet, multiple uses
People will be able to use their m-wallets
for banking, payments and remittances
between banks, shops, employers, government
institutions and customers, all
carried out on a single, secure platform.
Available in indigenous languages as well
as Spanish, the service aims for universal
inclusion and appeal. The solution is
expected to be implemented in phases
and available in the Peruvian market in
2015.
Ericsson’s M-Commerce solutions are
already deployed with mobile operator
MTN in Uganda, Rwanda, Nigeria,
Swaziland and Zambia. Ericsson is working
with operator Millicom’s Tigo platform
in Senegal.
Overcoming challenges
For m-commerce to gain traction in
regions with low financial inclusion, a number
of factors must be addressed. These
include regulation linking mobile operators
and financial institutions, supportive government
policy, consumer education and
local system capacity.
Partnering with Peru’s ASBANC
In 2014, ASBANC, Peru’s National Bank
Association, selected Ericsson to design
and implement its Mobile Money project,
the country’s largest private initiative for
financial inclusion. ASBANC estimates that
2.1 million Peruvians will own and benefit
from a mobile wallet by 2019.
The initiative with ASBANC is significant.
In addition to the 13 major banks of Peru,
bank agents and mobile operators plan to
get connected to the Mobile Wallet Platform
to create an m-commerce eco-system in
Peru to address the financial needs of the
unbanked population.
The platform will feature easy-to-use
and secure next-generation mobile financial
services, capable of hosting all services
from different financial and commercial
institutions to secure interoperability.
The Ericsson M-Commerce solution
includes the development of the mobile
money platform, systems integration, learning
services, managed services and support.
Mobile financial services enable small-scale entrepreneurs to accept convenient mobile payments.
42 Ericsson | Sustainability and Corporate Responsibility Report 2014