Capturing the promise of mobile banking in emerging markets - McKinsey Quarterly - Telecommunications - Strategy & Analysis

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Capturing the promise of mobile banking in emerging markets - McKinsey Quarterly - Telecommunications - Strategy & Analysis.

While it is easy to stereotype and lock images of poor people without access to technology, the truth is that new technologies are bringing services that were otherwise unavailable to large, underserved population groups. Unfortunately, much of this is going on in emerging nations rather than our own.

Mobile banking is an example, according to this report from McKinsey. In fact, the number of people with bank accounts is many fewer than those with mobile phones. The clear answer is mobile technology, which will make help bridge the divide.

Yet, it seems strange that McKinsey writes about this happening in emerging nations, but not so in our own. Cellphones are ubiquitous in this country, yet the capabilities for mobile technology are lagging behind many lesser developed nations.

Nonprofits involved in financial services should examine how they can bring these technologies to lower-income groups, enabling better access and saving habits, using technology rather than fighting it.