Vodafone Group, with the permission of The Consultative Group to Assist the Poor (CGAP), today publishes a report that reveals the economic and social benefits being created by mobile banking (m-banking) amongst the world's poorest communities.

The report, titled Economic Empowerment through Mobile, is the third in a series of Corporate Responsibility Dialogues produced by Vodafone and includes the results from three independent research projects.

Vodafone partnered with The Consultative Group to Assist the Poor (CGAP) and World Resource Institute (WRI) to research the impact of mobile phones in enabling economic transactions. It also worked with Forum for the Future (FFF) to understand the social and economic impact of its Airtime Transfer product in Egypt.

Key economic findings include:

The first public results on how low-income individuals in South Africa view and use m-banking, showing it is valued as it can be more affordable than traditional banking (94% of users/37% non-users)
Traditional business models are being challenged as m-banking models are adopted; one third of people in South Africa and Botswana who do not have bank accounts do either have a mobile phone or have access to one Airtime Transfer services in Egypt have started to create commercial opportunities for small-time dealers and resellers of airtime, providing a viable and flexible business opportunity for a wide range of micro-entrepreneurs

Key social findings include:

Mobile technology and the Airtime Transfer services support social networks through reinforcing existing relationships and enabling airtime to be redistributed across family or friends
Airtime Transfer services have given women more independence. 52% of the women surveyed for the FFF research said that airtime transfer gave them more freedom with only 5% saying the opposite

Charlotte Grezo, Director of Corporate Responsibility, Vodafone commented:

"We have been supporting systematic research into the socio-economic impact of mobile phones in developing markets since 2004. We have learned a lot about the potential to utilise mobile banking from our own micro payment solution, M-PESA, which has been successfully piloted in Kenya. This was developed in partnership with the UK Department for International Development. It is essential we continue to understand and explore the social impacts of mobile technology so that the products and services we develop maintain a positive influence."

Guatam Ivatury, Microfinance Specialist, CGAP commented:

"Financial services help poor people increase household incomes, build assets, and become less vulnerable to crises. Mobile phones have tremendous potential to deliver these financial services to billions of low-income people who otherwise would not have the opportunity to save or improve their financial literacy using a traditional bank,"

Vodafone is committed to understanding the impact of mobiles in developing markets and published detailed research in this area: Africa: the Impact of Mobile Phones. The CR Dialogue Economic Empowerment through Mobile will be available from the 9th of November online at www.vodafone.com/responsibility/dialogues

Vodafone

Vodafone

Vodafone is the world's leading international mobile telecommunications company, with equity interests in 27 countries and Partner Markets in more than 40 countries. As of 31 December 2008, Vodafone had approximately 289 million proportionate customers worldwide. The Company's ordinary shares are listed on the London Stock Exchange and the Company's American Depositary Shares ('ADSs') are listed on the New York Stock Exchange. For further information, please visit www.vodafone.com.

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