4 charts

4 charts on the state of mobile payments for the underbanked

  • There are about 2 billion unbanked and underbanked individuals in the world today.
  • The unmet deposit demand of the unbanked demographic is at least $360 billion.
close

Email a Friend

4 charts on the state of mobile payments for the underbanked
Mobile payments solutions have transformed geographies that were once underbanked or even unbanked, allowing for modern finance and commerce to take hold. Though the path to financial inclusion is still long and many geographies still lack many services, the transformation is underway. A recent study by PWC highlights the opportunities mobile payments have in addressing regions that lack broad access to financial services. The unbanked don't have a formal bank account. People who have a formal bank account but, because of lack of funds or poor credit history, rely on ancillary services, are considered underbanked. screenshot-www.strategyand.pwc.com 2016-08-03 12-27-43 There are about 2 billion unbanked and underbanked individuals in the world today. The unmet deposit demand of the unbanked demographic is at least $360 billion, according to the study. screenshot-www.strategyand.pwc.com 2016-08-03 14-38-25 Mobile payment solutions are the first step in tapping into the underbanked opportunity. According to the GSMA, an association of approximately 800 mobile operators around the world, in 2014 there were 255 mobile money services operating in 89 countries. In 2014, there were more than 300 million registered mobile money accounts globally, with half of them located in sub-Saharan Africa. image (2) Kenya is the poster child for mobile payments. There are now more than 26 million mobile money accounts in Kenya, roughly equal to the adult population of 26.8 million, according to PWC. In other markets, penetration of mobile payments is still low. For example, although 91 percent of adults in Ghana own a mobile phone, only 5 percent have used a phone to pay bills, and 1 percent have used a phone to pay for goods in a store. However, a clear trend of startups offering more advanced mobile financial services on top of payments is emerging. Even advanced services such as insurance have seen an uptick in developing countries. Premiums from developing markets now represent 18 percent and 16 percent of total non-life and life premiums, compared with 7 percent and 4 percent, respectively, in 2000. Incumbent banks and fintech upstarts are exploring ways to expand the services they offer to unbanked and underbanked. In order to do this successfully, they must create solutions that are accepted by customers, are easy to implement, and mitigate risk. Among the offers that are being tested are lending marketplaces, P2P insurance and blockchain-enabled financial services.

0 comments on “4 charts on the state of mobile payments for the underbanked”

4 charts, Blockchain and Crypto

4 charts on the year of the ‘crypto credit crisis’

  • The collapse of multiple centralized exchanges has plunged the crypto industry into what CoinDesk calls a 'crypto credit crisis', with circumstances still unfolding today.
  • For a broad perspective on the market, we discuss the macro returns, Bitcoin and Ethereum's performance, and the state of capital raised for crypto funding over the past year.
Lindi Miti | January 30, 2023
4 charts

Where challenger banks are headed, in 4 charts

  • Challenger banks have definitely managed to make a dent in consumers’ habits.
  • But with the current downturn in funding, what lies ahead for these digital banks?
Rivka Abramson | December 27, 2022
4 charts

The state of transparency and inclusion in private markets, in 4 charts

  • If Musk privatizing Twitter and Kim Kardashian setting up a private equity firm are indications of things to come, then transparency and inclusion in private markets should be in the spotlight.
  • We look at Carta's Annual Equity Report 2022, which gives a demographic analysis of ownership in US private markets. Here are our takeaways, in four charts.
Lindi Miti | December 02, 2022
4 charts, Business of Fintech

Q3 fintech funding: Investors cut fewer deals and signed smaller checks

  • Facing a looming recession and uncertain macroeconomic conditions, fintech investors are more hesitant about signing large checks.
  • While fintech funding dropped to 2020 levels, the US continued to lead global funding share by a large margin.
Lindi Miti | November 22, 2022
4 charts

How fintech investments fared in Q3 2022, in 4 charts

  • VC investment in fintech has fallen for a third straight quarter in 2022, as health edges past to become the most invested industry.
  • Fintech investments are down more than 60% YoY, from $35 billion in Q3 2021 to $13.3 billion in Q3 2022.
Subboh Jaffery | November 10, 2022
More Articles