"The mistake a lot of us make is to look at the folks at the base of the pyramid and assume that they must need the same types of services we need."
The Harvard Business School case study Mobile Banking for the Unbanked explores two very different examples of mobile financial service models: …show more content…
"WIZZIT essentially took a banking service like the one we have here—depositing salaries in the bank that we draw down to make payments—and decided that this is what the poor wanted, too," Rangan says. "Of course the founders were very creative in bringing the costs down dramatically and improving access, so the poor could afford to bank. The problem is that this is not the way that the poor think of money. They hardly have any savings. Their main need is money-transfer."
The success of M-PESA
In many developing countries, including Kenya, most of the population lives in rural areas, but the majority of bank branches and jobs are in the cities. To send money home, a city worker had to seal his wages in an envelope and pay a courier to travel for hours to the village. Alternatively, the worker could travel to the village himself, but that meant paying a hefty percentage of his wages for bus fare, plus a day of lost work.
Safaricom and Vodafone initially built M-PESA, a money-transfer application that resides