Can Mobile Banking Improve The Lives Of The Poor?
It feels to me like mobile banking is arriving. Whether its M-PESA in Kenya, Venmo in the US, or Bitcoin around the world, more and more people are using mobile services connected to the cloud to store and exchange money with other people and businesses.
And one of the big potential impacts of this trend is on the unbanked, those people who traditional banks won’t service.
The Verge’s Ben Popper and Bill Gates wrote a piece in The Verge this past week about the potential of mobile money to improve the lives of the poor. It’s a good read.
Bill Gates wrote this in his annual letter:
By 2030, 2 billion people who don’t have a bank account today will be storing money and making payments with their phones. And by then, mobile money providers will be offering the full range of financial services, from interest-bearing savings accounts to credit to insurance.
That’s 15 years from now, a long time for sure, but the part of that prediction that is the most important is the “don’t have a bank account today” part. That’s a huge number of people who will have the basic infrastructure in place to allow them to consume other financial services. That feels like a massive market opportunity to me. And it feels like a massive life improvement opportunity to me too. Doing well by doing good. There isn’t much better than that.