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Mobile banking, due to the inherent characteristics of mobile phone as a device, can contribute to each of each of the strategic drivers:

Increase market penetration. Due to their accessibility, mobile phones provide an invaluable pportunity to reach rural and remote areas, thus opening a new unexplored segment for MFIs. In countries, where mobile telecommunication networks are already established and used by mobile network operators for their main businesses, it makes more financial sense to offer financial services through these networks, rather than invest in the roll-out of the costly branches and ATMs.

Sell more services to existing customers. Mobile phone represents an effective channel to offer new products and services to existing customers. Customers need more than payments and money transfer; providers should develop products that fit their real needs and use mobile phone to market and deliver them to clients.


Retention of most valuable customers. Physical proximity and ubiquity of mobile devices contributes above all to the convenience of clients. The possibility to perform financial transactions on their mobile phones allows consumers the opportunity to free themselves from various time-consuming and costly activities associated with institutional banking systems. It helps to increase the level of client‘s satisfaction in dealing with MFI.

Reduce cost of service provision. Transferring part of MFI‘s operations related to interacting with client (i.e. loan disbursements and collections) on mobile platform will improve business efficiencies, thus saving time and costs. Mobile banking services which use channels such as text messaging (SMS) can be carried at a cost of less than 1 US dollar cent per message.

Carol Kakooza Kyazze
IT Specialist