In Bolivia, the WBCSD-SNV Alliance is pursuing the business opportunity of conducting financial transactions via a cellular telephone system in association with Síntesis, a leading company in the field of information technology.
While there are currently 3.7 million Bolivians (roughly 40% of the country's total population) with no access to financial services, some 2.6 million citizens are active cellular phone users. Furthermore, in rural areas of Bolivia access to cellular services is more widerspread than access to financial services. Users rely on the equivalent of a savings account for pre-payment cellular systems, and on the equivalent to a credit card for post-payment cellular services.
With such a large low-income segment of the population being "unbanked", there is a significant opportunity to provide financial microtransactions through a distribution channel relying on cellular phone systems.
Síntesis is a leading company in the field of information technology, specialized in online transactions and payments service provider between the commercial banking network and services providers (utilities, TV cable, college tuition). Síntesis (see an introductory presentation to Síntesis' corporate activities and services) has successfully developed products and services for the Bolivian low-income sector.
In the framework of the Alliance, SNV Bolivia and CEDES, the WBCSD's Regional Network partner in Bolivia, are working with microfinance companies towards developing a pilot project that offers microtransaction services using, among other things, the cellular telephone system platform to benefit the low-income segment that has so far not had access to such services.
Contact information:
Julio Garrett Kent
National Business Facilitator
WBCSD-SNV Alliance
La Paz, Bolivia
Tel: +591 211 56 55
Additional information on the business opportunities in the domain of cellular phones and financial transactions:
· Informe Nacional sobre Desarrollo Humano en Bolivia 2004, capítulo 5: "Campo informacional e internet"
· Perfil de las Microfinanzas en Latinoamérica an 10 Años: Visión y Características
· Case study on Vodafone's M-PESA service offering financial services for the unbanked. Following a successful pilot program in Kenya, Vodafone is rolling out a service that allows customers to access cash via their mobile phones. Called M-PESA, the service allows customers to borrow, transfer and make payments using a mobile phone, transforming financial services by making transactions cheaper, faster and more secure. The company is launching silimar mobile money transfer services in other countries.
Comments