The suggested changes detailed in the report, which represents Vodafone’s sixth policy paper, are expected to have a widespread impact on both the economic development of countries and the financial security of millions of people currently without access to banking services.
Key changes detailed in the report include a review of deposit taking, access to the clearing system, adaptation of ‘know your customer’ and anti-money laundering, and interoperability of m-transaction schemes.
The development of m-transactions is also expected to introduce significant improvements in financial services, such as easier and cheaper international payments, especially for remittances home, or reduced risk in domestic payments by near real-time transfers.
Lack of access to banking services is currently forcing consumers to rely on a cash-based economy with little security, a more casual informal labor market and a lower tax-base for governments. The report concludes that financial services are critical for economic development and that inclusive financial services for the unbanked are essential for poverty reduction.
Over the last two years, pilot programs in Africa and Asia have highlighted the potential for mobile phones to deliver basic financial services in developing countries. The report shows how these services provide the first real opportunity for many poorer people to get on to a formal ‘banking ladder.’
However, current banking regulations limit the growth of these m-transaction schemes. Vodafone, Nokia and Nokia Siemens Networks are calling for regulators to ensure that they do not restrict commercial experimentation or limit the schemes to a sub-economical scale.
