Last year, I visited Ghana and Tanzania in Sub-Saharan Africa. I met people in Accra and Dar-Es-Salaam and we talked about their everyday life; how they do their best to make ends meet and fight for a better life.
One of the things that stuck with me was the unwavering aspiration I felt in so many of the people I met. They saved money to ensure their kids would be going to school, or to build a house of their own. Even though their daily income level often was rather low, they still managed to save some of it for a rainy day.
Interestingly enough, people did not typically bring their saved money to the bank but rather kept them in a jar at home, or maybe in a cupboard. A common conception was that it is expensive to have a bank account. A phrase I heard several times was that banks are not for the poor - they are only for the rich. The absence of ATMs and bank offices close by, meaning limited access to your own money, was another important barrier to having a bank account in the traditional sense.
In contrast, many of the people I talked to had a great deal of trust for their mobile operators and many expressed an interest in mobile money as a way of securely saving their money and using in a convenient way.
Earlier this year, I had the opportunity to embark upon another explorative trip this time to Mexico City and São Paulo. I think that deep down I was half expecting to hear some similar statements to those I had heard in Sub-Saharan Africa.
What I heard in Central and Latin America was a rather different story…
Access to ATMs and bank offices were not as big a problem in the region. In fact, on some streets there seemed to be more ATMs than stores where you could spend your money. On the other hand, the ATMs were typically located inside the bank offices to give the customers a feeling of security and comfort rather than stand out outside on the pavement. In the interviews I held, it was clear that security was a very important factor in Mexico and Brazil.
This is where things get really interesting. What if there was a way of saving and spending money that did not stick out or draw attention to the fact you were managing your money in public? If only there was some gadget that everyone already has today. If only there was a gadget that would keep your money safe and let you pay your bills and purchases? Would that not mean that the main problems both in Sub-Saharan Africa and Latin America could be solved?
Oh, I forgot to mention, there was one factor that was the same on both continents: everyone I spoke to had a mobile phone.
Read more about our study of m-commerce in Latin America
What are your thoughts about mobile money in Sub-Saharan Africa and Latin America? Can mobile phones solve such issues as security around making payments in public? Share your thoughts below or on Twitter.
Anders Erlandsson: As Senior Advisor, ConsumerLab, Anders is responsible at Ericsson for analyzing consumer behavior, attitudes and trends. He provides valuable consumer insights and forecasts to develop strategies that generate revenue and improve the customer experience. Anders joined Ericsson in 1991 and has worked extensively with consumer insights in areas such as social media, privacy and integrity, mobile commerce, rich communication, or TV and media.
