Realizing the Potential of Branchless Banking: Challenges Ahead

Abstract

In this paper we further develop a broad vision for financial inclusion sketched out in Mas (2008), where payments can be easily made through an electronic network. What makes visioning such a payments utility possible is the technology we have today, which can be used to bridge distances, close information gaps, contain settlement risks, and generally reduce transaction costs. We are confident that today’s technology can do the job. Now the challenge is to develop attractive services that engage customers and workable business models that enable decentralized, largely private, institutions to build this payments utility.

Keywords: Branchless Banking, Mobile Banking, Microfinance, Electronic Payments