22
vritti
Changing Lives
September 2017
Third-party mobile money services
have struggled to gain ground
Various non-MNO, non-bank companies are
also offering mobile money services in
WAEMU region, however most services are
struggling to make headway due to limited
agent network and lack of experience in
operations and marketing compared to
MNOs. Unlike MNOs which use USSD as
access channel for mobile money, many third-
party service providers use mobile app and
SMS channel which has several limitations.
Banks aligning with
the new paradigm
Growing presence of MNOs in digital financial
services sector, internal pressure for cost
optimization and push from central bank to
reduce financial exclusion, is compelling
banks to explore digital financial services.
However, digital offering of the banks have
been largely limited to SMS banking, online
banking and prepaid cards, which tend to
target either banks’ existing users or high
income people in urban areas. Most banks still
have to come up with digital financial services
to serve rural and low-income population.
Most banks recognize the growing clout of
MNO and non-bank led mobile financial services.
Hence, rather that ignoring this trend, banks
are partnering with MNOs and non-banks to