By Shaker Ibne Amin
The poor people’s lack of access to credit has been one of the major obstacles to the development of impoverished rural areas in developing nations. Although there have been establishments of subsidized government lending schemes and rural co-operatives, none such endeavors have been fruitful in overcoming the various problems that restrict their access to the formal financial sector, thus leaving this particular segment ‘un-banked’.
Increasing popularity of remittance services and emergence of various microfinance programs coupled with the proliferation of mobile services in developing countries seem to have created a unique potential to provide financial services to the ‘un-banked’ segment over the mobile network, and at the same time, streamline operations and reduce operational overheads. [Read more]