SEATTLE — As technology continues to advance, people in poor countries are finding that mobile banking can help them better manage their money. By using a mobile banking system they have the opportunity to secure their money and manage it more effectively. Many organizations have researched this new take on helping developing countries and are finding ways to bring more phones to people living in poverty.
Half of the world currently lives with less than one dollar a day, and while they find ways to make money they do not always have a steady income. Without a banking system they have to hide cash in their homes and trust someone to send their money to their families in need. However, by utilizing a digital finance company they bypass risk of losing their money.
Companies have taken advantage of the growing demand of mobile banking. Bill and Melinda Gates have invested in Bkash located in Bangladesh. “Less than four years after launching, it processes roughly 2 million transactions per day, with a total value of nearly $1 billion each month,” according to Gates. There are also companies like Easypaisa in Pakistan, Airtel in Africa and Asia, as well as Mpesa in India.
USAID has also taken action to bring mobile phones to developing countries. Their Digital Development team focuses on partnering to help increase the use of digital banking. “Inclusive electronic payments such as mobile money not only have the potential to lift millions out of poverty, but can also improve governance by reducing costs and increasing transparency,” according to USAID.
Although more people are gaining access to mobile phones there is a large gender gap in the amount of women using mobile technology. “Regionally, the gender gap is largest in South Asia, where 37 percent of women have an account compared to 55 percent of men,” says The World Bank. USAID has partnered with Bankable Frontier Associates (BFA) to research how they can teach women to utilize mobile phones to improve their lives.
Despite the gender gap of mobile banking, this new trend in technology is a groundbreaking development in the improvement of lives. The ability to send and save money at the touch of a button can lift families out of poverty; not only by securing their money but utilizing technology to improve agriculture and productivity.
– Kimberly Quitzon
Sources: Gates Foundation, USAID 1, USAID 2, World Bank
Photo: Flickr