In this comprehensive analysis, CGAP assessed whether branchless banking or mobile money services are more cost effective or cheaper for low income people than formal banking. The authors, McKay and Pickens, compared pricing of 16 leading branchless banking services across eight ways that customers use branchless banking. They subsequently compared the pricing of these services against 10 formal banks and other informal money transfers options.
The eight use cases refer to: 1) sending money transfer, 2) receiving money transfer, 3)short-term safekeeping, 4) medium term savings, 5) bill payments, 6) high usage, 7) m-PESA customer, and 8) kenya bank customer.
The results say that branchless banking is 19% cheaper than banks, and have a lower transaction value. Additionally, branchless banking is 54% cheaper than informal options formoney transfer.They also discuss in detail how pricing influences customer usage.
In this comprehensive analysis, CGAP assessed whether branchless banking or mobile money services are more cost effective or cheaper for low income people than formal banking. The authors, McKay and Pickens, compared pricing of 16 leading branchless banking services across eight ways that customers use branchless banking. They subsequently compared the pricing of these services against 10 formal banks and other informal money transfers options.
The eight use cases refer to: 1) sending money transfer, 2) receiving money transfer, 3)short-term safekeeping, 4) medium term savings, 5) bill payments, 6) high usage, 7) m-PESA customer, and 8) kenya bank customer.
The results say that branchless banking is 19% cheaper than banks, and have a lower transaction value. Additionally, branchless banking is 54% cheaper than informal options formoney transfer.They also discuss in detail how pricing influences customer usage.
Post new comment