How Alternative Data is Transforming Access to SME Finance

Digital SME Finance

By John Owens & Lisa Wilhelm

Reposted from the SME Finance Forum Blog

Many traditional commercial banks consider small and medium enterprises (SMEs) to be high-risk clients, as well as high-cost clients to acquire, underwrite and serve. There is limited SME coverage by credit reporting service providers especially in emerging markets where SME informality is high.

While being able to analyze SME financial data was difficult in the past, digitized finance that makes use of transactional and alternative data is offering a new opportunity to address opaque credit and financial histories of SMEs. Every time SMEs and their customers use cloud-based services, conduct banking transactions, make or accept electronic payments, browse the Internet, use their mobile phones, engage in social media, get rated online, buy or sell electronically, ship packages, or manage their receivables, payables, and recordkeeping online, they create and deepen the digital footprints they leave behind. SMEs’ own, real-time, and verified data — unprecedented volume, variety, and velocity — also means more data can be used for credit decisions.

A rapidly growing group of technology-focused SME lenders are putting the use of alternative digital data, customer needs, and advanced analytics at the center of their business models, thereby setting forth new blueprints for changing the SME finance market. These new lenders are also often providing more transparent, faster, easier, and better-tailored financing solutions that today’s increasingly tech-savvy SMEs seek.

The report titled “Alternative Data Transforming SME Finance” looked at 800+ innovative digital SME lenders and digital commerce, payments and service providers in more than 60 countries. Here are some of the key findings:

  • Banks have valuable data, but are often not using it: Banks have a highly valuable repository of SME data, including SME owners’ customers’ daily transaction data that provides reliable real-time visibility into SME cash flows and credit capacity. However, most banks lack the ability to create innovative SME lending models from it. The data often resides in a patchwork of legacy systems and data silos that make it difficult and costly to access. This gap has created an opening for digital SME lenders to capture this market segment and/or partner with banks to take advantage of these new models.
  • Digital SME lenders are developing new relationships with SME customers and their data: In some cases, non-bank digital SME lenders insert themselves between banks and their SME customers, and forge fundamental changes in SME customer expectations. SMEs are embracing the digital world more and more every day. Increasingly, many SMEs are more tech-savvy, more sensitive to slower service and paper-intensive loan applications, and more willing to shop around for unmet and unserved financing needs.
  • New SME digital data streams are becoming more readily available and accessible: Digital SME lenders leverage vast and expanding stores of data, including from electronically verifiable, real-time sales, bank account money flows and balances, payments, social media, trading, logistics, business accounting, and credit reporting service providers, as well as a wide range of other private and public data sources used in the SME credit assessment process.
  • There are a wide range of digital SME originator lending business models: The new digital SME lending originator business models that take advantage of the expanding universe of SME digital data vary widely. This report highlights these business models, selected players, and the digital SME data they use. It includes marketplace lenders, tech, e-commerce, and payment giants which are extending SME lending into their non-banking digital ecosystems where they are already dominant. It also includes supply chain financing firms, mobile micro-lenders graduating to SME lending, and innovative banks.
  • Digital SME lending is becoming more of a global trend: That these innovators are sometimes simultaneously launching nearly identical products in developed and developing markets alike demonstrates just how profoundly alternative data and technology are leveling the playing field. As such, they are enabling new digital SME lenders in many parts in the world to leapfrog traditional bank SME financing barriers.
  • Digital SME lender-bank collaboration is also a growing part of the future of SME finance: Banks may have been blind to digital SME lenders at first, and digital SME lenders may have said they would replace banks. However, both parties now have come to a simple conclusion: there are limits to what each player can do on their own and there is strength in collaborating. Apart from partnerships with banks, some non-bank digital SME lenders are instead partnering with each other, tech giants, cloud-based SME service providers, or alternative lenders in other sectors. In other cases, they are securing their own banking licenses, suggesting some new non-bank digital SME lenders still plan to forge an alternate path, thereby bypassing traditional legacy banks altogether. A vital characteristic of these collaborations is a sharing of each partner’s SME digital data. This facilitates the development of new and innovative SME credit decision models and expanded access to credit.
  • Access to data is no longer the problem in SME lending: Digital SME lenders have dispelled the long-held notion that SME lending is not achievable in a scalable, efficient, and profitable manner. In an increasingly digital economy, these lenders are beginning to demonstrate that access to data is unlocking many of the earlier challenges to expanding SME lending. The digital economy has also given rise to an ever-evolving set of value-added cloud-based services to help SMEs with their finances, business planning, productivity, legal issues, data backup and security, file sharing, web conferencing, website builds, online marketing, business training, e-commerce, payments, loyalty programs, business intelligence, and more. To increase customer engagement and help their SME customers be more successful, banks and other SME lenders have started partnering with these platforms to offer SMEs these applications individually, together, or wrapped up with other core products and services.
  • However, access to data for SME lending brings new challenges: With the abundance of alternative data, there are new issues of what to use, how to use it, and how to do this responsibly — while also respecting privacy and other important rights of SMEs. These new entrants bring new complexities, risks, and ways of thinking about the SME financing value chains, as well as new agenda items for policymakers and regulators.

This new generation of digital SME finance and data innovation is transforming the future of SME finance.  This report takes stock of the range of data, the range of institutions using the data and considers the opportunities alternative data presents to narrow the financ­ing gap for SMEs. It also notes the new issues and poten­tial risks raised by this massive increase and diversification of data supply to financial sector stability, and to consumer protection.

Any venture such as this is by its nature a collaborative effort guided by the valuable insights and expertise of our many reviewers along the way. We thank them and the Global Partnership for Financial Inclusion (GPFI), the SME Finance Forum, the World Bank Group, the German Government, the Silicon Valley Community Foundation, and the Swiss State Secretariat for Economic Affairs (SECO) for undertaking and supporting us in the development of this report.

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Payphone Bank in Colombia: An Innovative Way to Promote Micro-savings via Pay Phones

Tigo-Une’s “Payphone Bank” by Grey Colombia has won the Grand Prix for Product Design at this year’s Cannes Lions.

The telecom company turned 13,000 cast iron pay phones from the turn of the century into a micro-savings system for the poorest in Colombia, where 8 million people earn an average of $3.50 a day, and are completely left out of the financial services system. Now they can go to a Une store to activate an account, then deposit their earnings, which are mostly coins, into the public phone and their own microsavings account. That account can be used to pay utility bills, buy public transit tickets, and even get microloans at stores to buy basic appliances like a refrigerator.

“It’s helping a lot of people in one country, and could be very meaningful for other countries,” said Ruth Berktold, president of the Product Design jury and owner of Yes Architecture in Germany.

Colombia has won a Grand Prix at a previous Health Lions festival but this marks the country’s first Grand Prix at the main event.


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What does responsible online and digital credit look like?

evarlyne_kioko_pg_2016_23Background & Research Questions

More and more online credit providers have started to offer loans to not only consumers`but also to SMEs around the world.

Outside of digital banking platforms, new alternative online and digital platforms that target consumers and small SMEs include:

  • Peer-to-peer (P2P) SME lenders
  • Online balance sheet lenders
  • Loan aggregator portals
  • Tech and e-commerce giants
  • Mobile data-based lending models

While the rise of alternative data-based lending has opened new and innovative credit opportunities for individuals and SMEs, these new technologies and providers also come with several consumer protection challenges. These can be categorized into seven main areas:

  • Data privacy and opt-in vs. opt-out challenges
  • Underwriting practices
  • Potential for exclusion of certain categories of clients
  • Cyber security and individual data protection
  • Clear and effective disclosure over pricing and terms
  • Customer recourse, complaint management and dispute resolution
  • Collection practices

To address these issues, both regulators and online lenders are analyzing various actions and standards to better protect online borrowers. In the US, the Department of Treasury, the Small Business Administration, the Federal Reserve Bank and the Consumer Financial Protection Bureau have all started to focus on consumer protection issues related to online lending providers.

While online lenders targeting consumers are regulated to a certain extent by US consumer financial protection practices, this is not the case for those targeting SMEs. To address some of these concerns, online and alternative lenders have started to develop consumer protection principles for small businesses under the Coalition for Responsible Business Finance (CRBF). In addition, they have supported a proactive Small Business Borrowers’ Bill of Rights focused on transparent pricing and terms, non-abusive products, responsible underwriting, fair treatment from brokers, inclusive credit access, and fair collection practices, suggesting this can be done without adding undue burden or cost to this emerging industry. Other groups and alliances have also formed with various different competing versions of responsible online lending including the Innovate Lending Platform Association and its Smart Box Capital Comparison Tool. In addition, the Online Lenders Alliance has also issued their Best Practice guidelines.

Outside of the US, regulators and online lenders in jursidictions like the UK and Singapore are proactively engaging with each other to discuss new consumer protection standards. Based on challenges within the growing P2P lending industry, Chinese regulators are now implementing strict guidelines while Indonesia’s financial regulator is just releasing new consumer protection guidelines to address P2P lending practices. [3] On the other hand, in most other markets, online lenders outside of the banks are lightly regulated or not regulated at all. International organizations like World Bank, the Consultative Group to Assist the Poor (CGAP), the Alliance for Financial Inclusion (AFI), the G20 and groups like Consumer International have all proposed various consumer protection principles which apply to online lenders. While online lenders are still outside of most regulatory and supervisory frameworks in many emerging markets, there are proactive approaches and standards that can be proposed.

Overall Objective & Hypotheses

Online lending for consumers and especially SMEs is highly relevant and important to expand access to finance and overall financial inclusion. However, trust, confidence and responsible lending practices need to be in place in order to ensure that this industry is able to continue to offer access to credit. Under a research grant from ACCION Center for Financial Inclusion Fellows program, this study will examine the various customer risks proposed by online lenders, what standards and practices are being proposed in some key jurisdictions, both by industry groups as well as regulators/policymakers, and what best practices can be recommended for setting consumer protection and risk mitigation standards for the emerging online financial services industry.

Study Design & Methodological Approach

The research study design will follow a systematic review of literature on the topic of responsible online lending practices including research studies, guidelines, policy notes, as well as standards that are being used to address consumer protection and risk mitigation practices in online lending across various jurisdictions. The study will especially focus on online lending practices not only of supervised financial service providers but also of new financial service providers, which may be lightly regulated or not regulated at all. Interviews with financial consumer protection agencies/associations, regulators and online credit industry players from several key markets, as well as discussions with key researchers and thought leaders from this industry will also be conducted.


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Tendencias en Servicios Financieros Digitales y Inclusión Financiera

Esta presentación fue preparada por el Banco Central de Costa Rica para aprender sobre los nuevos servicios financieros digitales que apoyan la inclusión financiera.

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Leveraging Fintech to Achieve Financial Inclusion in Indonesia

by Ghiyazuddin Mohammad and John Owens (reposted from MicroSave’s blog)

“Fintech” – an intersection of financial services and technology – is taking the traditional financial world by storm. Indonesia is no exception, with a fast-evolving ecosystem that includes a host of financial services offered by new generation fintechs.

The diagram below, by no means exhaustive, highlights a few of the fintech players covering a myriad of financial services like payments, credit, savings, insurance, and financial management.

MS_BlogIndonesia – Perfectly Placed to Reap “Fintech”

Indonesia is the fourth largest mobile market in the world with 339.9 million connections – a SIM penetration of 131%! 43% of Indonesians already own a smartphone. Furthermore, Indonesia is going “mobile-first” with 64.1 million out of a total of 88.1 million users accessing Internet through mobile devices. This is fuelling social media usage by platforms such as WhatsApp, Facebook, Blackberry, Line, Path, etc. This trend is also leading to explosive growth in electronic and mobile commerce, with big names such as Alibaba, Softbank, Sequoia, Rocket Internet, and Temasek backing local ventures. In contrast, only 36% of 250 million Indonesians have access to formal financial services.

Keeping these technological advancements in context, Indonesia is well placed to leverage “fintech” towards the cause of financial inclusion. Fintech innovations are providing a range of new opportunities to dramatically change four main financial service areas – payments, remittances, credit and deposit-taking.

Leveraging Savings

Without access to formal financial services, many poor Indonesians continue to utilise informal services such as Arisan (ROSCAs), package saving schemes, and savings with individual agents.1 The bank deposit-to-GDP ratio in Indonesia (an indicator of deposit mobilisation) stands at 34.55% – much lower than Malaysia (130.25%), Cambodia (42.97%), and the Philippines (54.38%). This presents a big opportunity to all financial service providers, but especially new fintech players.

If we look at examples from other countries, Equity Bank in Kenya is one of the best examples of deposit mobilisation through digital banking services. After starting agency banking in 2011, the bank now mobilises 20%2 of its total deposits through a channel network of 25,388 agents, spread across the country. A dedicated team focusing on agency banking business and a client-centric business model based on the philosophy of “listening to customers” has made this possible. Other examples include, M-Pawa’s interest-bearing savings account in Tanzania, developed in collaboration between Vodacom and CBA and the Lock Savings Account offered to M-Shwari users in Kenya, where clients can move money from their M-Pesa account to save through a fixed deposit account that earns higher rates of interest.

Other examples include rural banks in the Philippines which were one of the first financial service providers to offer SMS reminders for commitment savings that allowed for dramatic increases in savings rates.3 This has been followed by new fintech players supporting banks to support increased savings behaviours in low-income customers such as Juntos. Similarly, there is also a significant potential to utilise SMS technology and/or messaging platforms to support goal-based savings in Indonesia. A case in point, is the common practice of saving to meet expenditures for major religious events like Ramadan.

Enabling Payments

A booming e-commerce sector, fuelled by large international investors, needs an intuitive online and offline payments infrastructure. However, a 2015 Bank Indonesia study documented that 89.7% of the transactions in Indonesia are in cash. This provides a tremendous opportunity. Consider the following payment process in order to make a purchase through a leading e-commerce portal for those with bank accounts:

Navigation through multiple websites makes the payment process clumsy, leading to poor user experience. In addition, most online portals limit payment options to those with bank accounts or provides cash-on-delivery options which are costly to operators. Using mobile/electronic wallets for payments, an option available for leading e-commerce portals such as Tokopedia and Elevania, can provide a more seamless experience to customers as well as reduced expenses for operators.

Further, offline payments through mobile/electronic wallets also present a significant use case. Kopokopo―a leading merchant aggregator in East Africa with more than 10,000 merchants―is a successful example of providing a mobile-based small value merchant payment platform. Apart from acquiring merchants, the organisation focuses on providing value-added services such as merchant cash advances, transaction analysis tools, and merchant/customer engagement initiatives to ensure merchants remain active. Easypaisa in Pakistan and PayTM in India are other notable examples for merchant payments. Closer home – players like TCash, Tapp Commerce and Dimo Pay are catching up fast. The idea is to integrate the payment and financial service habits of users through a single e-wallet/account. This could then be used for a variety of payments whether making purchases online, pay for Gojek/Uber, restaurant bills, or bill payments.

Easing Remittances

Remittances–both domestic and international–are a big market in Indonesia. However, most domestic remittances are largely informal and cash based. In a research conducted by Gallup, 50% of the Indonesians said that they sent money to their family or friends in the preceding 12 months, in “cash”. An average of US$ 87.40 is sent about 1.6 times a month! Evidently, a huge untapped market waiting to be facilitated via fintech players. This is especially relevant to mobile/e-money users where 71.5% of all transactions (by value) are person-to-person transfers.

Indonesia provides a US$10.5 billion international remittance market – an opportunity for new fintech players to add value to a market heavily dominated by money transfer operators such as Western Union. This is especially the case with remittance prices, averaging 5% to 8.60% of the amount sent.4 Notable fintech players in this segment such as WorldRemit have already partnered with Dompetku – a mobile money service offered by Indosat Ooredoo. However, there is a compelling need for focused players to cater to Indonesian migrant workers, predominantly based in Malaysia, Taiwan, Saudi Arabia, Hong Kong, Singapore, and the United States.

Access to Credit

The World Bank estimates that only 13.1% of the Indonesians have borrowed from a formal financial institution. Further, domestic credit to GDP ratio in Indonesia is 43.5%, lower than its neighbours including Malaysia (140.5%), Vietnam (113.8%), the PhilippinesMS_Blog31 (55.8%) and China (169.3%). Online, fintech-based lending can play a pivotal role in narrowing this credit gap. Micro and MSME loans based on alternate credit assessment models are growing across the developing world.

Mshwari in Kenya offers small/instant loans in collaboration with Central Bank of Africa (CBA). Credit assessment is built on data generated on the basis of airtime usage, M-Pesa usage, length of association, etc. Tigo Tanzania (Tigo Nivushe), MTN Ghana (Mjara loans) and Equity Bank (Eazzy loan) are other examples of this model.

Given the market size in Indonesia, there is huge scope for growth. Following global cues, fintech credit players such as Uang Teman, Mekar, and Modalku have already emerged in Indonesia.

To read the entire article click here 


Facebook: The New Game Changer for Mobile Payments & Remittances 



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Facebook: The New Game Changer for Mobile Payments & Remittances


Image from themediaoctupus

As predicted last year, new financial players especially social media giants like WeChat and now Facebook can be major players in the mobile payment space.  Facebook in particular has the widest global outreach among social networks and has already been offering money transfer and related mobile payment services in the US since last year. Now Facebook has announced plans to enhance digital transactions to pay for physical goods in stores.  Given the large number of Facebook users and the major network effect of remote family members, not only could Facebook be a major player in mobile payments but, more importantly, mobile-enable cross border remittances.

Mark Zuckerberg recently shared that Facebook would “partner with everyone who does payments.”  In addition, Forbes reported that Facebook was working with multiple businesses including Uber to facilitate payments. While the slow uptake in a market like the US, which already has multiple competing payment platforms is understandable, the real demand would be in developing markets, especially those with the largest number of active Facebook users such as the Brazil, India, Indonesia, Mexico, Turkey and the Philippines.  Even though many of these markets have various alternatives to making payments, a Messenger wallet that allows people to send money and pay for goods not only from linked bank accounts but also prepaid and e-money accounts could dramatically increase financial inclusion especially in counties like Indonesia and the Philippines.

It is also clear that Facebook isn’t planning to directly make money by taking a cut from mobile payment transactions made through Messenger, but rather provide a better value proposition to increase usage of Messenger and increase revenue via its advertising business.

As mentioned, in countries with large international remittances including India, Mexico and the Philippines, a Facebook facilitated cross border remittance service that is free and would only require small currency exchange fees could completely disrupt the entire remittance industry and would rapidly achieve the goals of the G20’s Global Partnership for Financial Inclusion to bring down the costs of remittances below 5%.

In a more recent article Forbes noted that the success of Facebook’s bigger payments play on Messenger will come down to execution. While Facebook takes a page out of the success behind WeChat’s  mobile payments service in China it will not only have to take into account the differences between markets but will also need to incorporate linkages to bank and non-bank financial providers that offer simple transactional accounts like e-money, mobile money and prepaid debit cards. In markets that are challenged with complicated or limited interbank funds transfers, Facebook could dramatically ease interoperability not only between those with bank accounts but also those with non-bank e-money or mobile money accounts.  Facebook will also need to ensure security and trust, however, this should be achievable via Facebook’s two factor authentication.

My prediction is that Facebook could be the game changer for not only mobile payments in the developing world but also remittances.  Facebook will definitely be the new mobile payment player to watch this year.

My Thoughts on Payments, Blockchain and new Technologies in the Philippines and other Emerging Markets

Eight trends that will impact financial inclusion in 2015

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My Thoughts on Payments, Blockchain and new Technologies in the Philippines and other Emerging Markets

The following article appeared in the Zooz Industry Influencer and Q&A blog.

imagesCould you tell us a bit about the current state of payments in the Philippines? The Philippines is undergoing a tremendous change in terms of the payments space with new developments in the banking industry, fintech players entering the marketplace, a growing number of payment service providers, e-commerce marketplaces and a lot of interest among both the private and public sector to support a growing shift to electronic payments.

Why is the Central Bank Chief calling on bankers to help create a National Retail Payment System?
The Central Bank [Bangko Sentral ng Pilipinas (BSP)] is now calling on the banking sector as well as other regulated financial industry players to support the creation of a National Retail Payment System (NRPS). The NRPS is envisioned to help Filipinos have greater access to financial services primarily through electronic accounts to make payments, receive or transfer funds to other accounts anytime, anywhere and at a reasonable price from any digital device. As the BSP Governor recently pointed out, “Efficient retail payments contribute to the stability and efficiency of the financial system and the economy as a whole. Studies have shown that shifting from paper-based to electronic-based payment system can generate an annual savings up to 1% of gross domestic product (GDP).” As has been noted in the recent study by the Better Than Cash Alliance (BTCA), Filipinos make over 2.5 billion transactions a month worth over $74 billion but only 1% are done electronically with the other 99% made via cash or check. This fact, along with the ability to connect to almost all Filipinos digitally via a mobile device, allows for a tremendous opportunity for the payments industry to make a real difference not only from the standpoint of overall economic growth but it also serves as an excellent business opportunity. As the Governor summed up during the recent 25th anniversary of BancNet, “The NRPS initiative is a rare opportunity for all of us to work together to do something that can be a real positive game changer for the economy and for our people.”

What role (if any) is bitcoin playing in the emerging market regions that you follow?
Bitcoin and other virtual currencies are often talked about but transaction volumes are still quite small. Globally, there are only around 100,000 bitcoin transactions a day. If we compare mobile e-money in countries like Tanzania, we see that the number of transactions per day is now over 3 million. Central banks have taken a cautious approach to virtual currencies which is best summed up by the BSP warning issued last year, which cautioned the public about using virtual currencies. The recent move by the New York Department of Financial Services to license virtual currencies is most likely a trend that will be continued in other jurisdictions. Apart from virtual currencies, I think the more interesting development is the use of blockchain technology which potentially offers tremendous opportunities to support the development of payments. Banks and various regulators around the world are now starting to look into this technology to better enable a variety of financial transactions.

Which emerging markets do you see as being most receptive to mobile payments – and why?
Africa, especially East Africa, is still the leader in mobile payments primarily due to the lack of reasonable alternatives and the rapid expansion of agent networks that have provided enough touch points to make it even easier to cash-in or cash-out of accounts, and, more importantly, sufficient value added use cases.

Are there any new companies or technologies that you see transforming the payments space over the next six months to a year?
I previously wrote about the 8 trends that will impact both digital payments and financial inclusion earlier this year. While we are seeing several new players enter the marketplace in many countries and regions, I do think the changes to policies on national retail payments now taking place in several markets including the Philippines and active support from both the governments and private sector to shift to e-payments in several key markets will be the main drivers that will take advantage of the convergence of financial players including traditional banks, new payment service providers, and new technologies that will transform the payments space over the coming year.

To read the full article, please click here.


Eight Trends that will Impact Financial Inclusion in 2015

Developing a Safe and Secure Digital Payment Ecosystem to Promote Financial Inclusion

Digital Financial Services, Regulations and Financial Inclusion: Where Are We Headed?

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The importance of money transfer operators and the issue of de-risking in the Pacific Islands

Alliance for Financial Inclusion Blogs

John Owens

Dr. Sione Ngongo Kioa, Governor at the National Reserve Bank of Tonga (far right) and Ms. Maiava Atalina Emma Ainuu-Enari, Governor at the Central Bank of Samoa (second from right), discuss MTOs with John Owens, senior policy advisors at AFI (middle), and Robert Bell, founder at KlickEx (far left). Dr. Sione Ngongo Kioa, Governor at the National Reserve Bank of Tonga (far right), and Ms. Maiava Atalina Emma Ainuu-Enari, Governor at the Central Bank of Samoa (second from right), discuss the issue of de-risking and MTOs with John Owens, senior policy advisor at AFI (middle), and Robert Bell, founder at KlickEx (far left), at the launch of the Pacific Islands Regional Initiative in Dili, Timor-Leste.

The issue of de-risking and the related impact on remittances has arisen recently at a series of high-level conferences and forums across the Alliance for Financial Inclusion (AFI) Network. During the G24-AFI Policymakers’ Roundtable in Washington, DC, there was a clear reference to the threat to financial inclusion posed by de-risking strategies of international banks, especially in countries where remittances form an essential part of financial safety net. The G20 Global Partnership for Financial Inclusion has committed to lowering the costs of remittances…

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Innovative Financial Services that are Driving Financial Inclusion in the Pacific Islands

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New mobile money schemes extend banking reach in Ethiopia after NBE issues new guidelines


Mobile banking image in Ethiopia from PCTech magazine 

After AFI member institution National Bank of Ethiopia (NBE) finalized their guidelines on mobile and agent banking they continued to support the sector by encouraging the use of digital financial services by conducting a workshop in December 2014 entitled “How to Operationalize Digital Financial Service: Mobile and Agent Banking within the Ethiopian Context.”

The workshop brought together policymakers, financial institutions, government stakeholders and development partners to establish a shared understanding among stakeholders driving financial inclusion in Ethiopia. Moreover, the workshop was facilitated by international experts drawn from different parts of the world having specific subject matter expertise in demand, distribution, technology and regulatory aspect of digital financial services.

Around the same time, several Ethiopian banks and microfinance institutions launched mobile enabled e-money services in 2014, which are predicted to rapidly bring financial services to millions of Ethiopians in the next few years.

For the full article see New Mobile Money Schemes Extend Banking Reach in Ethiopia after NBE Issues New Guidelines

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