Page 7 - 2014_MMU_Smartphones-and-Mobile-Money-The-Next-Generation-of-Digital-Financial-Inclusion_Web
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MOBILE MONEY FOR THE UNBANKED SMARTPHONES & MOBILE MONEY: THE NEXT GENERATION OF DIGITAL FINANCIAL INCLUSION
FIGURE 2
ZUUM APP SCREENSHOTS
Smartphone applications for mobile money can potentially address some of the user-experience limitations of USSD, including session
time-outs and user error. Additionally, the ability for providers to update their applications at a relatively lower cost can potentially result
in continual improvements for customers.
Since smartphone operating systems offer a common platform for developers—spanning specific devices and equipment manufactur-
ers—mobile money apps can leverage a host of other functionalities, including integration with other features like contacts, calendars
and maps. Mobile money applications could also potentially be integrated as a source of payment for app store purchases, as well as
other mobile commerce opportunities.
App-based mobile money could also help to address customer frustration associated with common limitations in the agent network: a lack of
proximate and liquid agents. An agent locator feature, as is displayed in Figure 1, can be particularly useful for new customers. We could also
conceive of features that empower customers to rate agents on customer service or liquidity metrics. From the perspective of the provider,
advanced analytics from richer data could allow for greater predictability of agent liquidity needs and more effective agent management.
Providers would be better equipped to improve the quality of their agent network, thus improving the customer experience.
Overall, the feature-rich interfaces and greater functionality on smartphones can offer more intuitive customer experiences, potentially
easing adoption and usage.
New product development linked to mobile money accounts
Greater smartphone penetration may lead to an accelerated pace of new product development on the mobile money rails. New products
can range from money management apps for existing mobile money accounts to more sophisticated mobile financial products. While
this can be a vertically integrated process led by in-house product development teams within mobile money providers, we are likely to
witness a move towards disaggregated value chains with third parties offering software to layer new products on existing platforms.
In Kenya, developers are already targeting M-PESA customers with smartphone apps, though primarily for money management purposes.
For instance, pesaDroid and m-ledger help customers keep track of their M-PESA transactions and generate monthly statements. These new
products are beginning to show the potential of apps to turbo-charge basic mobile money accounts for personal and business use.
7
FIGURE 2
ZUUM APP SCREENSHOTS
Smartphone applications for mobile money can potentially address some of the user-experience limitations of USSD, including session
time-outs and user error. Additionally, the ability for providers to update their applications at a relatively lower cost can potentially result
in continual improvements for customers.
Since smartphone operating systems offer a common platform for developers—spanning specific devices and equipment manufactur-
ers—mobile money apps can leverage a host of other functionalities, including integration with other features like contacts, calendars
and maps. Mobile money applications could also potentially be integrated as a source of payment for app store purchases, as well as
other mobile commerce opportunities.
App-based mobile money could also help to address customer frustration associated with common limitations in the agent network: a lack of
proximate and liquid agents. An agent locator feature, as is displayed in Figure 1, can be particularly useful for new customers. We could also
conceive of features that empower customers to rate agents on customer service or liquidity metrics. From the perspective of the provider,
advanced analytics from richer data could allow for greater predictability of agent liquidity needs and more effective agent management.
Providers would be better equipped to improve the quality of their agent network, thus improving the customer experience.
Overall, the feature-rich interfaces and greater functionality on smartphones can offer more intuitive customer experiences, potentially
easing adoption and usage.
New product development linked to mobile money accounts
Greater smartphone penetration may lead to an accelerated pace of new product development on the mobile money rails. New products
can range from money management apps for existing mobile money accounts to more sophisticated mobile financial products. While
this can be a vertically integrated process led by in-house product development teams within mobile money providers, we are likely to
witness a move towards disaggregated value chains with third parties offering software to layer new products on existing platforms.
In Kenya, developers are already targeting M-PESA customers with smartphone apps, though primarily for money management purposes.
For instance, pesaDroid and m-ledger help customers keep track of their M-PESA transactions and generate monthly statements. These new
products are beginning to show the potential of apps to turbo-charge basic mobile money accounts for personal and business use.
7
