Around 3 billion people do not have access to even the most basic financial service that we take for granted, like an account, credit or insurance. It is almost impossible for people to get out of poverty when everything has to be done in physical cash.
"For three billion people, the global financial system is a complete failure." - Michael Schlein, CEO of Accion.
Unfortunately these accounts have limited use, and most transactions are still done in cash.
People can only send money electronically to others who have an account with the same mobile company.
If all mobile money providers and conventional banks were connected together, anyone could easily send money to anyone else, including payroll and paying bills.
It’s not possible to make tiny purchases electronically, so cash is used for almost everything.
If tiny purchases were able to be made cheaply and easily electronically, then everything could be done electronically, and there would no longer be a need for physical cash.
Access to other financial services like micro-credit and insurance are costly, if available at all.
If other financial services like micro-credit and insurance were available electronically, these services would be available to more people at a lower cost.
What’s missing is interoperability: the connecting of different systems together so that transactions can happen between anyone regardless of where their accounts are held.
The Mobile Money providers must be connected together, and then also to conventional Banks, to facilitate: sending funds, payroll, bill payments, and micro-purchases.
Ideally, this interoperability infrastructure would also integrate other organizations offering other services, for example governments, lenders, utilities, and insurers.
We are building new Financial Infrastructure for Developing Countries, specifically intended for the poorest people on this planet.
This is a unique industry with unique challenges and requirements.
Any interoperability system that processes financial transactions must consider a wide range of system as well as legal challenges, including things like system availablility, transaction integrity, transaction liability, dispute resolution and fraud prevention.
It is also necessary to integrate with existing financial infrastructure in each country, and follow all appropriate regulations.
Our team has the necessary experience.
Most importantly we must understand the specific way of life as well as challenges of the poorest people in each country. There is no point offering services that no one will use.
We must also consider the different types of financial organizations that would use this infrastructure, with different types of customers and difereing services.
Finally, we must be able to reach the right organizations in each country, with the right offering, in order to make this hapen.
Building the right partnerships.