neWs: international
mobile finance service planned
By David Craik consultants Booz and Co, the development of financial
Financial services for unbanked commented: “This technology freedom, wider markets and
businesses and consumers in offers a real solution for social and economic mobility
developing countries will soon emerging economies all over for people who have thus far
be within reach, thanks to their the world. The service has to been unable to access traditional
mobile phones. be simple – usually SMS based banking systems,” he said.
The prediction follows – with a light application that Mutawi added that providing
the signing of a joint venture works with different and older the technology for these services
between mobile money handsets. is the easy part. The big challenge
company Monitise and Made in “Remittances and money in its development has been the
Africa to launch a mobile money transfers are the most common “complexities” in telecom and
service in Uganda. applications, often in low financial regulation.
The service, which promises individual amounts. We have “Undoubtedly there will be
to bring financial services to found that the service needs ongoing regulatory challenges in
every consumer either banked or to be backed up by a strong making sure that such systems
unbanked, will begin this autumn presence of cash collection are not open to abuse,” he said.
eeterv
followed by launches in other outlets, especially in rural areas.” “However, the telecom and
.com/P
East African countries such as Abdullah Mutawi, partner banking communities have been
kphoto
iStoc
Rwanda, Tanzania and Zambia. and head of telecoms at fully dedicated to developing a
Services will include account lawyers Trowers and Hamlins, regulatory framework for this Alastair Lukies, chief
management, money transfers told Pathfinder Business that type of service in recent years. executive of Monitise, said: “We
and payments to merchants or the project will have a massive They recognise the potential are now in talks with mobile
service providers. Customers impact on the lives of ordinary that exists among the mass network operators, banks and
of participating financial people in Africa. He said the markets of the developing merchant networks to bring
institutions will be able to “phenomenon” of helping world. Profitable services can them into our East African
manage their accounts and make financially disconnected people be provided to consumers no ecosystem for the benefit of
payments directly from their is taking place in a number matter where they sit in the GDP people across the region. Our
mobile phones. of developing economies and spectrum. These types of project vision of universal mobile money
Dr Michael Peterson, VP regions. will continue to proliferate and across the globe is fast becoming
Telecoms for management “These are the first steps in succeed.” a reality.”
fast recovery? Stay small – and export
Smaller, export-orientated identified a number of other traditionally we have looked to recovery with Germany, Japan
economies are set to recover smaller, export-orientated these larger countries to take and Switzerland being some
fastest from the economic economies as being best the lead – however, globally of the last economies to grow,
downturn, according to a recent equipped to benefit from any our ethos is changing and but also warned that the efforts
report by IMD, the leading recovery. At the top of the moving us into new ways of of national governments to
Switzerland-based business table, near the expected names thinking. These new ways stop bail out their economies could
school. from Northern Europe and Asia, looking to the lumbering giants lead to a rise in protectionism,
As part of the annual IMD Qatar and Chile showed good to take the lead and understand amid pressure to limit stimulus
World Competitiveness Index, prospects of coming out fast that the real impact is from packages to measures that
where the USA retained its from any return to growth. economies that have flexible would benefit domestic
top spot, the organisation also While the survey highlighted small manufacturers and businesses.
“stress tested” the world’s the potential of some of the suppliers.” “The multilateral world
markets to see which were set smaller economies it also The survey is designed as a is on the decline (IMF, World
to benefit quickest from any recognised that the world would ‘glimpse into the future’ and is Bank, WTO). It is again a brutal
recovery. not “believe” in the recovery based on just 20 criteria rather power game among the big
In this separate study, until it saw good performances than the 329 required for the nations. But beware: in the
Denmark came top – primarily from larger countries such as the World Competitiveness Index. words of Thomas Jefferson:
because of its strong reliance US, Germany, China or Japan. Professor Stephanie Garelli, ‘A government big enough to
on business and the long- Lesley Batchelor of the Director of the IMD World give you everything you want,
established stability of its leading Institute of Export Competitiveness Centre, felt is also strong enough to take
society – and the exercise commented: “I agree that that the US would still lead the everything you have’.”
pathfinder business l JUNE/JULY 2009 5
PBS12 pp04-11 Comment+News.indd 5 5/6/09 15:25:41
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