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The purpose of this briefing note is to provide an overview of current applications of mobile technologies with relevance for child protection. This is an area of rapid innovation and new applications are being developed all the time. Telecommunications is one of the fastest growing sectors in Africa and the relevance and reach of mobile technologies for development and humanitarian work is only going to increase over the coming years. Many technical, legal and security aspects of these new technologies remain to be fully addressed and worked out. The dependence on technology, network coverage and electricity supply also mean that mobile technologies cannot be used everywhere.

The main part of this note presents three different types of mobile applications for: (a) gathering and transmitting data by child protection service providers; (b) self-protection and for complaints mechanisms; (c) social transfers.

Technology is increasingly relevant to Americans’ monetary contributions to the causes and
organizations they support. Previous research from the Pew Research Center’s Internet & American Life Project has found that one in five US adults (20%) have made a charitable contribution online, and that one in ten (9%) have made a charitable contribution using the text messaging feature on their mobile phone. Mobile giving played an especially prominent role during the aftermath of the January 2010 Haiti earthquake, as individual donors contributed an estimated $43 million to the assistance and reconstruction efforts using the text messaging feature on their cell phones.

This new mode of engagement offers opportunities to philanthropies and charitable groups for reaching new donors under new circumstances as messages spread virally through friend networks. At the same time, it poses new challenges, including the uncertainty in fund-raising groups about whether these new donors will remain engaged once they make their donation. In an effort to more fully understand the world of mobile giving, the Pew Internet Project, in partnership with the Berkman Center for Internet & Society at Harvard University and the mGive Foundation, and supported by the John S. and James L. Knight Foundation, conducted the first in-depth study of mobile donors. This report on those who gave to the “Text for Haiti” campaign is based on telephone surveys with 863 individuals who contributed money to the Haiti earthquake efforts using the text messaging feature on their cell phones, and who consented to further communications at the telephone number they used to make their donation.

M-money services have flourished in some countries, both developed and developing, but not in others. Why? What are the drivers for success and the barriers that block success? How can one recognize whether a new market will blossom if given a strategic push or whether a situation is too challenging?

This study was undertaken to increase our understanding of how m-money systems develop and to address key issues in scaling up m-money adoption. It first reports on a survey of user and nonuser perceptions and the types of demand expressed for m-money. Then it looks at several parameters that could spur or block m-money development, such as national regulatory environments, current access to financial services, and the requirements of potential service providers to run m-money services as viable businesses.

Four countries—Brazil, Nigeria, Sri Lanka, and Thailand—each of which represents a different world region, socioeconomic situation, and financial context, were visited and analyzed in terms of m-money business models, major money flows and demand, user and nonuser perceptions and behavior, regulations, and agent networks. We also studied the two most successful m-money countries—Kenya in the developing world and Japan in the developed world—to compare them with the four countries in our study. The United States was included as a reference point and as an advanced country in terms of electronic payment (e-payment) cards (e.g., debit and credit).

Based on our findings, we propose the best possibilities for investment in m-money in the four countries studied and can identify areas that hold little promise under current conditions. We have also developed a theoretical framework and methodology that is a powerful tool for assessing any country’s m-money development potential. It provides insight into the type of business model most appropriate in a specific country context, the sort of partnerships needed, the type of regulatory environment required to enable m-money development, and—finally—the developmental paths that m-money might take.

The Mobile Financial Services Development Report 2011 assesses the development of the mobile financial services (MFS) ecosystem in twenty countries. Its purpose is to provide a tool for decision makers to identify relative areas of strength and weakness and to prioritize opportunities for collaborative action to build scale in mobile financial services. The Report defines mobile financial services development in terms of the key drivers across the institutional, market and end-user environments that lead to adoption and scale. Measures of mobile financial services development are captured across seven pillars:

1. Regulatory proportionality

2. Consumer protection

3. Market competitiveness

4. Market catalysts

5. End-user empowerment and access

6. Distribution and agent network

7. Adoption and availability

The Report thus takes a comprehensive view in assessing the factors that contribute to the long-term development of mobile financial services. It includes mobile payments and transfers within its scope but also the development of other vital financial services such as savings, credit, and insurance.

Conditional and unconditional cash transfers have been effective in improving development outcomes in a variety of contexts, yet the costs of these programs to program recipients and implementing agencies are rarely discussed. The introduction of mobile money transfer systems in many developing countries offers new opportunities for a more cost-effective means of implementing cash transfer programs.

This paper reports on the first randomized evaluation of a cash transfer program delivered via the mobile phone. In response to a devastating drought in Niger, households in targeted villages received monthly cash transfers as part of a social protection program. One-third of targeted villages received a monthly cash transfer via a mobile money transfer system (called zap), whereas one-third received manual cash transfers and the remaining one-third received manual cash transfers plus a mobile phone. We show that the zap delivery mechanism strongly reduced the variable distribution costs for the implementing agency, as well as program recipients’ costs of obtaining the cash transfer. The zap approach also resulted in additional benefits: households in zap villages used their cash transfer to purchase a more diverse set of goods, had higher diet diversity, depleted fewer assets and grew more types of crops, especially marginal cash crops grown by women.

We posit that the potential mechanisms underlying these results are the lower costs and greater privacy of the receiving the cash transfer via the zap mechanism, as well as changes in intra-household decision-making. This suggests that m-transfers could be a cost-effective means of providing cash transfers for remote rural populations, especially those with limited road and financial infrastructure. However, research on the broader welfare effects in the short- and long-term is still needed.

This report tackles ICT4D under three key headings: information, communication and participation. While not ignoring negatives, the report primarily explores, through the lens of Cambridge activities in ICT4D, the positive impacts and ongoing challenges of ICT4D: its ability to provide access to valuable information, to create meaningful two-way dialogues, to reach remote and excluded communities, and to empower the excluded to participate in their own development and societies.

There are still significant barriers preventing people in the Global South from accessing ICTs. But with the ongoing, rapid growth in mobile phone use and network connectivity across the world, the parameters are changing. We need to keep adapting to this environment in order to succeed. We must also ensure that the poorest and most disadvantaged are not left behind.

We have also seen challenges and progress that still need to be made in harnessing ICTs to achieve positive and lasting development outcomes. Technology can only ever be one ingredient in this process, but it can be a potent one. A key strength of ICT4D lies in the potential for participation, especially as technologies become more and more interactive.

This report focuses on the opportunity to improve agricultural productivity using mobile services, highlighting the opportunity to bring new investment to a key group: smallholder farmers. Mobile telephony could have significant potential to help the poorest farmers towards greater food and income security.

Only in recent years that mobile communications technology has been widely accepted as an enabler of sustainable growth. In developing markets, where the deployment of mobile telecommunications networks has surpassed traditional fixed-line technology, the mobile telecoms industry is well-placed as an enabler of higher performance in the value chain. There is a distinct need for market-led opportunities, and the opportunity for mobile operators to deliver these is significant.

The mobile services studied here enable companies to access and interact directly with different participants in the value chain, helping to build visibility of issues, capacity and quality. They will support company sustainability objectives, and in particular, progress towards the UN Millennium Development Goals by helping to reduce poverty, improve health and increase funding for education.

This report aims to stimulate the necessary engagement between mobile operators, governments, NGOs and businesses to realize these opportunities and explore others.

The Information Economy Report 2011 demonstrates that effective use of information and communication technologies (ICTs) in both the private and the public sector can significantly contribute to and accelerate progress in private sector development (PSD).

Governments and their development partners should take a holistic and comprehensive approach to leveraging ICTs in PSD, although a review of PSD strategies indicates that this is often not the practice. Similarly, donor strategies often refer to the use of ICTs in PSD in a peripheral manner only, if at all. On its own, new technology will have limited effects on PSD. However, when carefully integrated into policies and processes, ICTs can reduce business costs, promote transparent, rules-based systems, and improve communication between the public and private sector.

Governments need to work with the private sector to create an investment climate and a business environment that encourage the use of ICTs within private firms as well as in government. The potential of ICTs can then be realized, through adequate infrastructure and skills, and a commitment by governments to making markets work effectively. In some areas, there is already considerable experience and evidence to guide policy initiatives. In other areas, where opportunities for ICTs to contribute to PSD have emerged only in the past few years (as in the case of mobile money services), more analysis and testing of different business models is needed to assess potential and identify best practices.

This document presents the conclusions of the study “Leveraging ICT for the BoP” sponsored by AFD-Proparco, Ericsson, ICCO, France Telecom-Orange, and TNO and conducted by Hystra and Ashoka from October 2010 to June 2011.

This study aimed to learn from “what works” in terms of full projects (as opposed to technologies) combining both an economically viable model and socio-economic impacts on their end-users, in the field of ICT for development (ICT4D). This work is thus based on the screening of existing projects led by various types of actors (social entrepreneurs, NGOs, private companies…), in 4 sectors of “development” where ICT has already shown it could play a key role: healthcare, education, agriculture, and financial services. 15 of the most ground breaking market-based business models, with a proven scale and results on the ground showing that ICT can be a lever improving the living standards of the BoP, are analysed in depth in the report to support the main conclusions.

The use of mobile banking is an increasingly important component of national and regional economic development in Southern Africa. Mobile banking can help bring the large unbanked population into the formal financial sector, and can facilitate cross-border trade by easing the difficulty for small businesses and traders to make financial transactions.

For mobile banking to reach its full potential in Southern Africa, however, African governments must establish more efficient regulatory frameworks and implement well-designed pilot programs to gain more insight into the challenges facing a full rollout of mobile banking

In this paper we argue that mobile banking offers the opportunity to diminish the financial exclusion suffered by the poor by offering access to credit and to savings which are key tools capable of transforming the livelihoods of the poor as well as the efficiency of the market. However, mobile phones need a complete ecosystem that supports its application to a functioning mobile banking service.

The aim of this paper is to contribute to existing knowledge of mobile money across the value chain by providing insight into the mechanisms of m-money, the value propositions within the business of m-banking and what is preventing its swifter adoption and usage in the developed world. We develop a taxonomy of the key drivers of the business model which provides insights for assessing the replicability of these models in other countries. We focus on models developed in Kenya and the Philippines and explore what is lacking for a widespread adoption in Latin American countries, such as Mexico, in order to observe what is preventing the creation and usage of m-money models for the BoP.

If communications and high-tech companies are to achieve their growth targets over the next few years, they must look to the emerging economies. These markets, with large populations, hold great promise. Although many consumers in these areas live in rural areas and rely on more limited means, their disposable income has risen in recent years. Many such consumers have become more confident about the future, and are now willing to buy aspirational products such as mobile phones and services, even on credit.

To achieve high performance in this environment, companies must understand the key mobile trends as they evolve in developing economies. They must develop a deeper understanding of the mobile value proposition to emergingmarket consumers as well as their distinctive service needs. New distribution networks must be created. Content, products and services need to be tailored to local populations. These challenges will require new models of collaboration to succeed in a more complex ecosystem.

This paper uses data from nationally representative household survey conducted in 17 African countries to analyse mobile adoption and usage. This paper shows that countries differ in their levels of ICT adoption and usage and also in  factors that influence adoption and  usage. Income and education vastly enhances mobile adoption but gender, age and membership in social networks have little impact. Income is the main explanatory variable for usage. In terms of mobile expenditure the study also finds linkages to fixed-line, work and public phone usages. These linkages need however be explored in more detail in future. Mobile expenditure is inelastic with respect to income, ie the share of mobile expenditure of individual income increases less than 1% for each 1% increase in income. This indicates that people with higher income spend  a smaller proportion of their income on mobile expenditure compared to those with less income. 

The study provides tools to identify policy intervention to improve ICT take up and usage and define universal service obligations based on income and monthly usage costs. It help to put a number to what can be expected from lower access and usage costs in terms of market volume and number of new subscribers. Linking this to other economic data such as national household income and expenditure surveys and GDP calculation would allow to forecast the economic and social impact of policy interventions. Concrete recommendations are being made for policy interventions and regulatory measures to decrease access and usage costs.

This Focus Note evaluates the evidence from 18 branchless banking providers with a collective total of more than 50 million customers (see Table 1) to answer three questions: 

• Does branchless banking reach large numbers of low-income and unbanked clients?
• Are prices for branchless banking lower than prices for traditional banking for the kinds of transactions low-income and unbanked people want to do?
• What other services do these customers want from branchless banking? 

The answers to these questions have implications for the business case, customers, and those who hope that branchless banking can boost financial inclusion. 

The data offer some answers. On the question of scale, branchless banking  can reach large numbers of the unbanked relatively quickly. CGAP looked at the outreach of eight providers globally for which good data were available by drawing on 13 studies that surveyed 16,708 branchless banking clients. The eight providers average 3.73 million active registered users, of which 37 percent or 1.39 million were previously unbanked.Five of the providers reach more previously unbanked clients than the largest microfinance institution (MFI) in the provider’s country—on average, 79 percent more. 

These five branchless banking providers grew quickly, surpassing the largest MFI in number of customers within three years. This is not to suggest branchless banking is replacing or eclipsing MFIs. The services branchless banking typically provides (payments) are complimentary to MFI microloans: both meet a widespread need for which clients are willing to pay.

This compendium of articles (available at a cost) attempts to critically investigate the use and utility of mobile phones in Africa. Contributors include Nathan Eagle who writes about ‘Economics and power within the African telecommunication industry’,  Amanda Atwood’s report on Kubatana’s experiences in Zimbabwe setting up mobiles as a means of sharing news outside of government propaganda, to Bukeni Waruzi’s essay on collecting data on children’s rights violations in the Democratic Republic of Congo in 2004.  SMS Uprising is published by Fahamu, a British-based organization with a focus on information services for Africa. For a critique of the book see our aticle here.

This paper examines the rapid evolution of branchless banking technologies and development of financial education as a tool to help low-income households better manage their money.

While focusing on getting delivery systems right, promoters of branchless banking often lose sight of the consumer. Despite recent enthusiasm regarding these new banking services, uptake and usage has been limited, and often does not include many of the poor. Reasons for lower usage rates among low-income populations include:

• Lack of familiarity with banking services;
• Limited trust in new financial delivery systems;
• Lack of understanding and experience using the technologies.

However, low-income households are willing to cross the digital divide and conduct their financial transactions through branchless banking. Higher usage is possible, but will require financial education to facilitate this process. This can be delivered through a variety of channels, such as radio, print media and class room training.

Finally, the paper presents a case study from Malawi which demonstrates the viability of branchless banking when potential clients have proper knowledge of how to use it and stresses that well-conceived financial education programs will achieve this aim.