Transforming Access to Finance in Developing Countries Through Mobile Phones: Creating an Enabling Policy Framework
Banking & Finance Law Review, Vol. 27, No. 2, January 2012
15 Pages Posted: 6 Mar 2011 Last revised: 28 Mar 2015
Date Written: January 6, 2011
Technology, and in particular the spread of real-time communications networks, permits banks to delegate last mile cash management and customer servicing functions to third-party retail outlets. By making basic deposit, withdrawal, and payment functions available securely through retail shops that exist in every village and neighborhood, there is an opportunity to dramatically increase the physical footprint of banks and to transform the basic economics of low-balance savings. Banking regulations need to be adapted to these new possibilities of banking beyond bank branches. We highlight three specific areas where sharpened regulatory analysis would help strike a better balance between maximizing the opportunities of these models and containing risks.
Keywords: Banking Regulation, Mobile Banking, Access to Finance, Branchless Banking, Financial Inclusion
Suggested Citation: Suggested Citation