Money through Mobile for quick Financial Inclusion, mCommerce and mGovernance. http://wp.me/p1ZsI2-ht
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It has become a fashion for everyone to talk about “Inclusive Finance’ and Empowerment of general mass. Mostly it all adds up and ends up in big fuss about something that could be resolved much simpler way. The need of the day is to put these ideas into action quickly by having the systems in place that can provide all sorts of micro/macro finance support to all without the need to go anywhere near a bank or other financial institutions.
There is nothing like “PERFECT” in any planning scenario. What is perfect today will not remain perfect tomorrow. Marching forward with contemporary systems, products and solutions with an eye on the future is the right thing to do. There is much propaganda about covering 25000 villages with broadband connectivity. Great, but question is what has been done for so called ‘Financial Inclusion’ the poor in the urban and semi-urban areas where broadband connectivity is already available for long.
For over ten years now, I have been propagating the idea of using phones, mainly Mobile and also fixed in a limited way, for almost all types of money management anytime from anywhere without the need of any sophisticated paperwork or involvement of bank or INTERNET access.
The term ‘Un-banked’ is controversial as the system mostly engages principle of banking but works in a transparent way as far the users are concerned. Nonetheless, for the Service providers it is utmost necessary to comply with regulatory norms of banking industry such as safety, security and privacy of the user and safeguards for the service provider; the differences are in the parameters and method of service delivery.
If the Government understands this properly without confusing this service with what is presently called as ‘Mobile banking’, the service could be rolled out in no time as the technology is readily available and readily marketable. The delay is only in spreading the reach to places where currently Telecom networks not yet available.
It is also necessary for the authorities to discern that the success of the system depends on the following factors.
(1) Regulating the service by the authorities right from the beginning is necessary and to allow only limited number of service providers as disparate systems at various points of service can cause confusion to the users and will become counter productive.
(2) Making the system available, accessible and affordable to general mass. The system shall be workable with any base model low cost phones that can work in base end technology systems and networks and more importantly the service cost to the end user shall be nil or negligible.
(3) While most of the transactions are e-payments without involving any hard cash transactions, there shall be simple and readily available methods to meet the hard cash needs of the users.
(4) There shall be sufficient safeguards for the micro/macro finance service provider to protect their funds being loaned their customers.
(5) There shall be means and ways for accruing benefit for all stake holders involved in the systems, networks and service by way of appropriate revenue and profit sharing.
All the above aspects are taken care of in my proposal of Money through Mobile (MTM) as explained in the article. Please see the article in full in my blogs in wordpress.com ‘Universal Money Management by phones’ in the link http://wp.me/p1ZsI2-4g and ‘Phones can save fuel, time and efforts, space and reduce cost of printing money.’ http://wp.me/p1ZsI2-8j
Abraham Paul Contact for more info mailto: firstname.lastname@example.org or tweet @PA_Paul