Mobile Banking: A financial service for the benefit of the rural

Yesterday, the National Coordination for Microfinance (CNMF) and the French Agency for Development (AFD) organized a seminar focusing on the restitution of the study conducted by the consultants of the “Institut d’Etudes Politiques de Madagascar”, located in Ampandrana . The seminar focused on the theme of “Mobile Banking” in the Great Island.The Mobile Banking has created new distribution channels of financial services to rural people.

Several shareholders in the world of finance and banking were present at the seminar. They have mentioned that only 3 to 5 % of adult people have bank accounts, and the penetration scale of microfinance does not reach 20%. Given such numbers, the Mobile Banking is a real opportunity for developing financial inclusion, particularly in rural areas.

It is important to note that about 50 people attended the workshop. In addition, they participated enthusiastically in the program proposed by the organizers. It was divided into two parts. The morning was devoted to the restitutions of the various aspects of the study concerning regulatory, market, distribution networks, the journal of the microfinance sector. Otherwise, the afternoon was marked by workshops and debates during which different scenarios proposed by the study were discussed. Thus, the day concluded with a summary of the discussions and working groups with a presentation of relevant items selected by participants which will be used for the development of the Mobile Banking in the future.

CNMF wished to carry out a study in order to analyze existing initiatives and to better understand the potentials associated with the development of this new service. AFD, for its part, has decided to support the project by funding the study, as part of its strategy of intervention in microfinance, including the improvement of access to banking services in rural areas.