NextBillion.net - Development Through Enterprise - Scaling Microfinance With The Remote Transaction System - Comments

Cellphone banking/transacting will be driven by Merchants

Cobus Potgieter — Tue, 06 Sep 2005 03:57:34 -0500

Hi Rob, also referring to the comment by Mike - I also very strongly believe that the mobile/cellphone-based banking and communication services can make a great contribution to socio-economic capacity building. We are involved in various countries and projects, as a provider of these services to merchants, banks, telcos and card operators. However, I see a clear trend developing - that of the Merchants that we supply the systems to, having a huge impact on the population and their client base (Mostly SMME's) alike and I think there is where the real benefits will come from, also because we can eliminate lot of costs etc. if we do it as consumer credit for say building material or FMCG and thus without a bank being involved. There is limited information available on www.mopay.co.za and if readers want more they can contact me on cobus@mopay.co.za for more detail as to the aspects raised above. I also have lots of research material available, only a pleasure. Regards, Cobus (MoPay founder)

Mobile Banking

Mike McKay — Sat, 03 Sep 2005 05:13:13 -0500

Hi Rob. I am enjoying your blog, and thought you might appreciate this story out of South Africa about banking over mobile phones. I am convinced it is the future of banking, rich and poor, but it will initially be driven by poor leapfrogging communities. Anyways, enjoy: http://www.csmonitor.com/2005/0826/p07s01-woaf.html http://www.standardbank.co.za/SBIC/Frontdoor_02_01/0,2454,10293765_15147290_0,00.html

Scaling Microfinance With The Remote Transaction System

Rob Katz — Wed, 17 Aug 2005 14:58:58 -0500

Innovations in microfinance have been ongoing since its inception in the mid-seventies. Recently, however, a group of microfinance institutions worked with Hewlett-Packard and developed an innovative technology, then piloted it using 3 unique microfinance business models. The technology - the Remote Transaction System - dramatically reduces transactions costs, fraud, and client/lender downtime using off-the-shelf handhelds and already-available GSM network capacity. This innovation, with its potential for broad-based application, could help microfinance leapfrog from small-scale, donor-funded operations into comprehensive financial systems serving developing communities around the world.