This is a sequel to my article, Why Is Mobile Money In Nigeria Targeting The Banked?
Both mobile money and mobile banking provide the same benefits – funds transfer, and purchase of services and goods. They just provide it differently, and to two different demographics. Mobile banking is deployed for people who have bank accounts, while mobile money serves the unbanked. But what is accomplished with both services are the same, namely:
- Send Money
- Withdraw Money
- Buy Airtime
- Pay for goods and Services
So, we see that mobile money to the banked is a mere duplication of mobile banking. The only use I can think of that someone with a bank account would have for mobile money is to use it to transfer/send funds to unbanked individuals. But even that use is largely redundant, as most mobile money services allow you to transfer funds from your bank account to a mobile money account. So, we are back to square one. In my opinion, it is this duplication of services across the two that makes it a hopeless thing to expect mobile money to boom in developed economies where most people have a bank account and mobile banking is widely deployed. Mobile money would be largely redundant in such places. Examples are Europe and North America.
However, at least one person has suggested to me that mobile money can be adapted to serve the banked in ways that it does not duplicate services already available via mobile banking. Based on this, she believes that mobile money can work in say, Europe. I am yet to find one single such adaptation. However, I am all open to the possibilities. If you know of any such adaptations, do share please. Thanks in advance for your contributions.