The Future of Mobile banking in Tanzania

C

CottonEyeJoe

JF-Expert Member
Jan 8, 2008
331
72
Vodacom, has come up with "M-Pesa", Zantel has come up with "Z-pesa", others have been more bold and attempted to create an operator independent platform such as "Mobi-Pawa", now jus a few days ago, Zain has joined the band wagon with their own branded mobile banking solution "Zap". From the offset we are seeing that the biggest problem so far is lack of collaboration by the mobile operators thus limiting the expansion mobile banking in Tanzania due to the fact that all stakeholders see mobile banking as a customer rentention service.

I would like to as such find out what fellow Jamii Forumers think should be done by stakeholders and regulators inorder to ensure that mobile banking succeeds in Tanzania and does not become a white elephant as i believe it has significant potential to render financial and banking services to the vast unbanked population of Tanzania much faster and more cost effectiviely in comparison to conventional banking approaches?
 
.........From the offset we are seeing that the biggest problem so far is lack of collaboration by the mobile operators thus limiting the expansion mobile banking in Tanzania due to the fact that all stakeholders see mobile banking as a customer rentention service............

Can you clarify this....what do you see as reasons for your conclusion?
 
deny_all said:
.........From the offset we are seeing that the biggest problem so far is lack of collaboration by the mobile operators thus limiting the expansion mobile banking in Tanzania due to the fact that all stakeholders see mobile banking as a customer rentention service............

Can you clarify this....what do you see as reasons for your conclusion?
Click to expand...


Basically the mobile operators banking platforms are closed and as such one cant send money from Vodacoms M-pesa to Zantels Z-pesa customer, in conventional banking this is possible through BOT by way of a clearing house that deals with both Cheques, and other transactions types such as electronic ones. Mobile operators launch these services as a way of keeping existing customers through new services as opposed to thinking about the bigger and enabling a collectively more enhanced mobile banking service for its clients.
 
CottonEyeJoe,

I am not sure if I will be responding on what you intended as I have been struggling to get the concept you wanted to bring to the members attention (just as deny-all has sought clarification from you). Nevertheless, allow me to chip my fifty cents in the whole concept of banking (in terms of mobile banking) viz a viz the penetration in the society i.e. reaching the unbanked society.

We should at the outset be thankful to the recent innovations which as a part of global world we can not be left aside (by whatever motives players have). You may recall the economic situation in our country where we face ernomous challenges arising out of our poor economic performance. For the purpose of this debate let me point out the infranstructure sector.

The situation in Tanzania is pathetic, just like any African countries where you find the common problems; lack of infrastructure in the sense that we have poor roads, communications, power etc. The coming of mobile phone technology or rather the advancement of ICT innovation has been like a manna sent to us. I personally feel for sure that if African countries will make good use of these new technologies, we can achieve much better in the short period of time compared to where we came from. For instance, since independence 1961, the number of Tanzania with bank accounts stands at less than 2 Million, that is in the span of 40plus years since independence. On the other hand, in the period of almost 15 years (that is since 1990) to date, the number of mobile phone subscribers in the country have risen from zero to almost 10 Million for all networks in the country.

If you have to bet, you would safely assume that banking through the mobile phone will bring a big population closer to banking service something which the traditional banking sector has failed to achieve. That being the case, one would safely assume that the number of mobile phone users will continue increasing in the speed which is much faster than banking sector and investing banking in the mobile phones is seen as an opportunity to reach the larger section.

The issue whether the mobile phone networks can achieve the same goal independently or through joining forces, my response to that is on the fact that the Bank of Tanzania (as a Regulator) has been insisting on the interoperability of these systems so that in the near future these systems "may see one another". I am also aware that there are initiatives to have in place a Swithc which will link all these systems together.

So, I for sure believe that there is a bright future in this industry.
 
Great thread chief..its worth reading over and over again to gain understanding amd insights about the general concept of M-banking: what is it? Its Challenges and prospects.
Kudos.
 
I agree with a comment that mobile banking will enable escalation of the banking service to the unbankable society and therefore be part of the financial literacy initiatives on uses of financial market product.
 
You must log in or register to reply here.

Similar Discussions

Back
Top Bottom
Forums
New posts
Post thread
Back