More than one quarter of the world’s population lacks access to formal banking services. Despite the growth in mobile financial solutions, nearly half of all adults in the developing world still do not have bank accounts or access to services from financial institutions, according to the World Bank. Ericsson Mobile Financial Services (MFS) aim to drive greater financial and social inclusion. Financial services need to be accessible, affordable and convenient particularly if they are to benefit users in more rural or hard-to-reach areas. The MFS platform features easy-to-use and secure next-generation mobile financial services, capable of hosting all services from different financial and commercial institutions to secure interoperability.
An open interoperable system allows traditional and non-traditional authorized financial service providers to quickly launch products and reach new consumer groups, The benefits of a fully enabled financial ecosystem are evident in the mobile wallet service called Bim asthe world’s first interoperable, shared mobile payment platform targeting financial inclusion.
The financial ecosystem achieving economies of scale and at the same time lowering operating expenditureand start-up costs. For instance, our research shows that the falling cost of digital technologies, notably mobile connectivity, could help utilities, local authorities, non-governmental organizations (NGOs) and community-based organizations effectively charge for water, generating revenues which could be used to build out new infrastructure and ultimately lead to dramatic improvements in public health and economic growth.
Mobile financial solutions can also address other sustainable development challenges, such as enabling the distribution and use of digital aid in emergency situations.
With increasing international recognition of the importance of financial inclusion for stimulating economic development and individual livelihoods, mobile financial services are critical for empowering those currently excluded from today’s traditional financial system.
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