Mobile Banking and Microfinance: What about the clients ?, outcomes of the 36th Midi de la microfinance, Luxembourg

Mobile Banking and Microfinance: What about the clients ?, outcomes of the 36th Midi de la microfinance, Luxembourg

Digital finance and mobile banking are now key elements for the development of a microfinance institution (MFI). During the 36th Midi de la microfinance organised by ADA and InFiNe.lu last 18^th October in Luxembourg, James Onyutta, Chief officer of Musoni Kenya, and Devyani Parameshwar, Principal Product Development Manager for M-Pesa, talked about the advantages and challenges of the use of mobile banking to expand access to financial services in developing countries. Laurent de la Vaissière, Director Information & Technology Risk Deloitte Luxembourg, moderated the conference.

Devyani Parameshwar (M-Pesa/ Vodafone), Laurent de la Vaissière (Deloitte) et James Onyutta (Musoni).

James Onyutta underlined that a financial institution not using digital technologies would have a limited future. The need for MFI to use new technologies in order to reduce their costs and increase information processing was mentioned. In addition, according Devyani Parameshwar, mobile financial services allow the customers to save time, increase the security and protect anonymity. Thanks to technologies, the clients can carry out financial transactions throughout the day.

However, in order to have efficient mobile financial services, Devyani Parameshwar pointed it out the importance of the following 3 factors: a smooth running of the MFI, a good distribution network, and a regulatory framework for the partnerships between telecommunication networks and financial institutions. The protection of client data is also essential.

Laura Foschi, ADA Deputy Director, concluded the debate.

To watch the conference and read the full report, click here