Mobile Banking: A Brief Overview

ImageOne of the most promising technological tools in the developing world is the mobile phone. Although there is still a significant difference in levels of mobile phone access and mobile phone usage, banking and money transfer has emerged as an area in which mobile phone technology can be useful and effective. This article gives a brief overview of the extent to which mobile banking has become a widely used technology. While in Eurpoe and North America, online banking is the norm, mobile banking is gaining more and more users in Asia, Africa, the Middle East and Latin America, where people do not have as easy access to computers. While we generally talk about developing countries benefitting from The Leapfrog Effect, it seems like in this case, developing countries have leaped right over online banking and found a solution more fitting to their needs. According to a Swedish industry research firm, mobile banking is expected to reach 894 million users by 2015. That would be a sixteenfold increase from 55 million users in 2009. Many companies in the developing world are looking to be the first to invest in mobile banking technology, and this field could perhaps become a booming global industry.

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2 responses to “Mobile Banking: A Brief Overview

  • margaretvariano

    I agree that mobile banking has a lot of potential for even more success in the future. I think it is an effective tool and it just makes sense with the number of mobile phone users growing more and more. It is much more widespread and efficient than internet use in many places, and therefore is a good ICT target for banking. I know in my country of focus, South Africa, mobile banking has become extremely widespread and successful, so I do not doubt the ability for this to take off in many other developing countries as well.

  • hfritchi

    I am interested to see how this mobile banking is influenced by the polices of the country and the effectiveness of the government. I feel like that with an area such as this that requires maximum security and confidence in the system, effective policies would need to be in place which could make it harder for a developing country to implement.

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