GSMA, the association that represents the mobile phone industry, has announced that by the end of 2016, the total number of mobile money accounts reached more than half a billon across 92 countries.
Speaking at the industry’s annual Mobile World Congress in Barcelona, Mats Granryd, Director General, GSMA, said that mobile banking has done more in the last 10 years to extend the reach of financial services than traditional “bricks and mortar” banking has done in the last 100 years.
“Mobile operators have been at the centre of this success story,” he said. “The reach and impact of their services provides a clear example of how important the mobile industry is to ensuring achievement of the 17 Sustainable Development Goals.”
Granryd explained that the industry is committed to expanding into new business areas including insurance, credit, savings and remittances.
Key figures released from GSMA’s sixth State of the Industry Report on Mobile Money, show;
- More than half a billion registered mobile money accounts globally, as of the end of 2016;
- Nearly 174 million accounts that are active (on a 90 day basis);
- There are 35 mobile money services with over 1 million active accounts;
- More than 4.3 million mobile money agent outlets, with 30 countries now having 10 times more active mobile money agents than bank branches; and
- The average cost of sending international remittances using mobile money is less than half the cost of doing so via a global money transfer operator.
“With two billion people still excluded from financial services, mobile money’s potential for the future is greater still,” added Granryd. “Over the next decade, the industry needs to work together to place the transformational power of mobile money in the hands of those who need it most.”
To ensure continued growth, GSMA has launched a developer portal for platform vendors and technologists, which will help ensure compatibility with industry-standard mobile money APIs.
The developer portal is free and will allow users to access a real, production-ready test environment and will be supported by the majority of vendors throughout the mobile money industry.
Progress on Sustainable Development Goals
In Granyrd’s keynote he outlined that it is not only in SDG 1 that mobile operators are making an impact but also in Goal 5 and 11–gender equality and sustainable cities and communities.
“GSMA research shows that 200 million fewer women than men own a phone, meaning they are missing out on key socioeconomic opportunities,” he said.
Last year the industry launched its connected women initiative. So far 24 operators have made 32 tangible commitments to close this gap, potentially unlocking US$170 billion in the next five years.
“There is a huge financial opportunity,” said Granryd. “Digital and financial inclusion for women is essential. When women thrive, families thrive.”
Global Mobile Award
The World Food Programme was presented with the award for most outstanding mobile contribution to the UN SDGs for its Share The Meal crowdfunding app. Receiving the award, Manoj Juneja Assistant Executive Director, World Food Programme said that as new technologies are developed, new opportunities are created to solve the world’s greatest challenges.
“Every day our people grasp that opportunity, innovating with partners such as GSMA to create the digital tools that will defeat hunger and meet the SDGs,” he said. “At the current pace of progress it is estimated that 650 million people will remain hungry by 2030. We will not be able to reach SDG 2 by 2030 at the current pace. We therefore need technological innovations in order to defeat hunger and reach the SDG targets.”
Juneja later announced that the World Food Programme will launch Share the Meal with children in South Sudan, where famine has taken hold. “Fifty cents will feed a child for a day and will give them a life.”
