Housed at the World Bank, CGAP Technology Program working for poor people to get safe ways to send, receive, and save money
Published 03-11-10
Submitted by CGAP
/PRNewswire-USNewswire/ - CGAP, an independent microfinance center based at the World Bank, today announced a new partnership with the UK Department for International Development (DFID) to expand ongoing global efforts to use information and communication technologies (ICT), especially mobile phones, to increase access to basic financial services for the poor. In addition to a 2006 grant from the Bill & Melinda Gates Foundation and CGAP funding, DFID will provide GBP 8 million to the CGAP Technology Program.
"Giving people access to financial services can help them lift themselves out of poverty. I am therefore pleased that the DFID-supported Technology Program at CGAP will work to improve poor people's access to financial services such as payments, savings, loans, and insurance. The Program will also support the delivery of social protection payments in developing countries and make the transfer of international remittances cheaper and safer," said UK Minister for Development Gareth Thomas.
Today's announcement builds on more than six years of work on mobile banking and access to finance. In that time, CGAP has provided financing and technical advice to projects with more than a dozen providers in Asia, Africa, and Latin America to develop innovative banking solutions, and conducted in-depth policy assessments of 13 countries. CGAP has also published a series of white papers focusing on business models, client needs, and regulatory conditions, which can be accessed at http://www.cgap.org/technology.
"The idea that a mobile phone could replace a bank branch has gone from concept to reality at an amazing pace. Now with support from DFID and the Bill & Melinda Gates Foundation, it's time to get beyond the early excitement of the past few years and shift into the build-out stage for mobile money so that millions of poor people everywhere get access to formal financial services," said Stephen Rasmussen, manager of the CGAP Technology Program.
Communication technologies such as point of sale devices and ATMs, but also notably mobile phones, are increasingly connecting poor people to the financial grid. With CGAP technical support and Bill & Melinda Gates Foundation funding, CGAP's project partners in India, Mongolia, Pakistan and the Philippines have created the world's first mobile phone-enabled savings accounts aimed at reaching poor, unbanked people.
"Savings is a highly neglected financial service available to the poor, and despite what most people may think, the poor do need a safe place to save money," said Amolo Ng'weno, deputy director at the Bill & Melinda Gates Foundation. "Mobile phones and other front-end technology solutions can bring low-cost financial services to poor people, giving them opportunities to build financial security and improve their lives."
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Key areas of focus for the technology program at CGAP
Facts about CGAP
About CGAP
CGAP is an independent policy and research centre dedicated to advancing financial access for the world's poor. It is supported by over 30 development agencies and private foundations who share a common mission to alleviate poverty. Housed at the World Bank, CGAP provides market intelligence, promotes standards, develops innovative solutions and offers advisory services to governments, microfinance providers, donors, and investors. More at http://www.cgap.org.
About DFID
The Department for International Development is the UK Government's department that manages Britain's aid to poor countries and works to get rid of extreme poverty. You can find out more at www.dfid.gov.uk.
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