Mobile and networked technology
"Mobile phones are providing much-needed information to the poor, especially in the case of expecting mothers who are at risk. While the information is essential, the maternal and child mortality rate will decrease only if the overburdened public health system is also fixed. After all, where will these messages refer women if not to the public hospitals and birthing centers? The systems around these women need to be strengthened through more government investment in the health care sector and a dedication to women's health and equality."
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M-Pesa: Social enterprise and mobile banking for the urban poor
Nicola Griffiths, Nairobi Guest Contributor
You're out in town for the day, it's time for lunch, and you suddenly realize you forgot your wallet at home. What do you do?

In Kenya, a likely solution is to call a friend and ask them to M-PESA some money to your mobile phone. Five minutes later, you receive a confirmation, at which point you can go and cash it in at the closest M-PESA point — or pay for your lunch directly with your phone.
M-PESA is a mobile phone money transfer system that has been operating in Kenya since 2007. A brainchild of Kenya's largest mobile network operator, Safaricom, M-PESA allows users to easily deposit, transfer, and withdraw money using a mobile device, through the use of SMS technology.
Initially set up as a micro-finance service to allow borrowers to easily receive and repay loans, M-PESA quickly morphed into the main 'urban banking' system for Kenya's poor — who have no access to Kenya's mainstream banks — as the only requirements for registration are an ID card and a mobile phone. Furthermore, transaction costs are very low, while transactions are carried out by a network of agents that include airtime resellers and retail outlets entitled to act as banking agents.
M-PESA is simple to use, easy to understand, fast to execute, and extremely convenient.
The use of M-PESA has spread so much you can now use it to pay a bill, the rent, school fees, groceries, and (especially important for Kenyans) send money home. It is now normal to find M-PESA outlets in even the most remote places, including the Maasai villages in the Mara or in the Samburu communities around Lake Turkana.
"M-PESA is so convenient," says Daniel Njihia, a 19-year-old M-PESA point operator in Uhuru Park. "In times of emergency, when you have no cash on you, your family or friends can immediately send you money and assist you."
But cash mobility is not the only benefit M-PESA has had for Kenyans. As Njihia points out, "M-PESA has helped us to get jobs. My family chose to open an M-PESA point five years ago and become self-employed; we now have money coming in every month that we can depend on."
Today, in fact, running an M-PESA agency is one of the "better entrepreneurial opportunities of the developing world," writes Tonny Omwansa in his book Money, Real Quick. With 20.000ksh (approximately 250$), you can set up an e-float, register as an agent, and then set up shop. Some of the agents are now earning more per month than lawyers or doctors. As Omwansa notes: "It is this entrepreneurial spirit which brings M-PESA easily to the urban slums and remote rural areas.”
Last but not least, the M-PESA system has managed to put a cap on muggings and robberies in the city, simply because few people walk around with large amounts of money in their pocket when they can have it in their phone instead. M-PESA accounts can only be accessed with the appropriate PIN codes, and without an ID it is impossible to withdraw money from an agent.
Today, some 70 percent of Kenyans — more than 16 million users — have an M-PESA account, with 30.000 M-PESA agents moving up to 10 billion dollars a year. This makes M-PESA the most successful money-moving service in the world.
As opposed to banks that make money off a small number of large transactions, M-PESA's strategy is to make money off a large number of relatively small transactions. As a result, it is now easier to send money person-to-person in Kenya than anywhere else in the world.
The M-PESA model has been replicated in Tanzania, Afghanistan, South Africa and India, but nowhere else has it had the success it has had in Kenya, where it has spread like wildfire. According to Betty Mwangi, General Manager of Financial Services at Safaricom, M-PESA is "like oxygen to Kenyans."
What the future holds for M-PESA in particular, and for mobile money in general, no one knows, but Omwansa speculates that "many players will get involved and develop several applications to extend payment and money transfer services to consumers; different players from different sectors are likely to engage in more collaboration and create networks we never imagined; and the ecosystem will enable different players to co-exist, creating unimagined possibilities."
Watch this space.
Can mobile phones save the lives of mothers and their children?
Carlin Carr, Mumbai Community Manager

High maternal and infant mortality rates continue to burden the developing world. Although international organizations have called for an increased focus on maternal health, more than 500,000 women in developing nations die during pregnancy or childbirth annually. In Asia, one out of every 43 women will die of maternal-related causes, compared to one in 2,500 in the United States. The fifth Millennium Development Goal (MDG) aims to reduce the maternal mortality ratio (MMR) by one-third in the next four years; however, India's efforts — and those of many developing nations — lag woefully behind.
According to PLoS Medicine, between 1990 and 2005, global maternal deaths decreased by only 1 percent per annum instead of the 5 percent needed to reach MDG 5. Training programs and technology to dramatically reduce these numbers are widely available, though appropriate funding, infrastructure and resources for maternal health have been lacking in countries that need it the most. India, for example, has seen tremendous economic growth over the last decade, although government spending on healthcare — less than 2 percent of GDP (China spent 5.8 percent in 2002) — has not kept pace.
An article in the Mint newspaper, "Mobiles can save India's poor women," says that mobile phones have great potential to help improve the state of women in India. "Women in India suffer from pervasive inequality and have distinct health, education, and economic needs not being addressed by current institutions and media," says the article, quoting a research report:
- Mobile phones represent the largest opportunity to address these needs, with 225 million women owning phones and the female VAS (value-added services) market worth $1 billion and growing.
Leveraging the ubiquitous mobile
Mobile phones are everywhere in India, from the most rural villages to the deepest trenches of vast slum areas. The phones are relatively affordable (often under $50 for the initial purchase), and, according to a study conducted by the Indian Institute of Management (IIM), are an investment with a good payoff, both socially and economically. The survey found that mobile phone users in nearly 100 slums in Ahmedabad, Calcutta and Delhi spend a significant amount of their wages on communication, and nearly 57 percent of respondents said they top-up their talk time at least once a week. The ability to communicate better with employers on work location and times saves money in travel, and the phones help in networking for employment, as well.

The issue, however, is that while many slum dwellers have found that they have better communication with their mobile phones, they are often not aware of its other uses, according to an article in the Hindu entitled "More poor people own mobile phones, but productive use still a far cry." "While there has been a marked rise in mobile phone use by BoP persons in rural and urban India, Bangladesh, Pakistan, Sri Lanka, Indonesia and Thailand, unfortunately, the device's use is primarily restricted to making or receiving calls or SMSs. In some cases, it is also used as a substitute for radio or as a torch."
Lessons may be learned from looking toward South Africa, where mobile phone penetration is at 95 percent, and innovative initiatives have begun to leverage this vast user base. In fact, more people use their phones than listen to the radio or watch TV, making the cell phone the most comprehensive and scalable means for disseminating information. More organizations have begun to think creatively about how to incorporate the technology into their work. For example, the Praekelt Foundation, which focuses on preventing HIV/AIDS, added a short message about HIV to the country's standard "Please Call Me" message, which all mobile users can send for free when they run out of talk time. "Almost forty million of these messages are sent daily," says an article in the Huffington Post. However, following the addition of the HIV message, "1.5 billion messages were sent out in six languages, resulting in 1.5 million calls to the national HIV hotline." The success of the seemingly simple program has sparked new ideas for harnessing mobile technology in solving some of the world's most pressing issues.
MAMA
A new three-year initiative, Mobile Alliance for Maternal Action (MAMA), provides expecting and new mothers access to vital and often life-saving information using mobile phones. Another advantage of the mobile is that information can be passed along by voice as well as in text messages — especially helpful given that 35 percent of women in India are still illiterate. The $10 million program — a joint initiative of the U.S. Agency for International Development (USAID), Johnson & Johnson, the United Nations Foundation and BabyCenter, in collaboration with the mHealth Alliance — has launched in South Africa and Bangladesh, and is expected to launch soon in India.

"We incorporate insights and delightful details alongside health messages, sending mothers week by week messages that tell her how her baby is growing, developing the emotional connection," according to the MAMA Alliance. "Once you gain a mother's trust, she is much more likely to act on the vital health messages she is receiving."
MAMA's Global Director Kirsten Gagnaire was in Delhi in July 2012 to lay the groundwork for expansion into India. In a blog post she wrote during her visit, she explained the challenges that lay ahead:
- India is a large and diverse place. Made up of 28 states and 18 official languages, the cultural beliefs and norms surrounding women, pregnancy, birth and child rearing are endless. For MAMA to succeed here, it is vital that we work to overlay the best practices for developing maternal messaging services with strong local partners and an understanding of the world in which the "mamas" we are trying to serve live each and every day in this vibrant, complex and beautiful country.

Subscribers to the service register by indicating the expected due date or birthday of their recently born child and receive weekly health messages and reminders during the pregnancy and up to the child's first birthday. Messages include everything from proper nutrition, breastfeeding, vaccinations and referrals to local health resources.
"No single approach is the silver bullet for improving global maternal health," writes Linda Murray in the Huffington Post, acknowledging the need to meet vast cultural differences, especially related to birthing practices and infant care. However, messages developed for expecting mothers can be easily tweaked or translated into local languages to meet the target community's specific needs.
Don't stop at the messages

Mobile phones are providing much-needed information to the poor, especially in the case of expecting mothers who are at risk. While the information is essential, the maternal and child mortality rate will decrease only if the overburdened public health system is also fixed. After all, where will these messages refer women if not to the public hospitals and birthing centers? The systems around these women need to be strengthened through more government investment in the health care sector and a dedication to women's health and equality. Only with this holistic approach will mobile health messages have the potential to save the lives of millions, and empower women to bring new life into the world in the safest ways for both mother and baby.
Inclusión financiera de zonas marginadas: crédito con valor social
María Fernanda Carvallo, Mexico City Community Manager
América Latina presenta una marcada tendencia a ofrecer micro-préstamos, créditos y hasta planes de seguros a través de dispositivos móviles entre la población con más alto índice de marginación. Con el objetivo de facilitar el acceso a servicios financieros y mitigar el bajo nivel de bancarización, en la región se ha desarrollado un novedoso sistema de pago móvil que busca propiciar la inclusión financiera y hacer más eficiente el flujo de dinero.

México estaba considerablemente rezagado en la distribución y acceso a servicios bancarios y financieros a través de dispositivos móviles que permitieran el ahorro en el traslado a las sucursales bancarias y disminuyeran el riesgo de portar efectivo. El banco central publicó en 2008 una minuta a través de la cual permitía a los bancos ampliar la gama de cuentas de depósito que pueden ofrecer al público con el objetivo de incorporar cuentas móviles, lo cual fue un aliciente para que las personas que habitan en comunidades marginadas fueran beneficiadas, sin embargo impactó en un mejor uso para el público en general. Este cambio ha propiciado el surgimiento de plataformas nuevas que contribuyen a la mejora del sistema financiero mexicano al tiempo que permite que quienes no tienen acceso a servicios financieros formales sean menos vulnerables a crisis o imprevistos.
El uso de cuentas móviles para la inclusión financiera
Con base en las nuevas disposiciones, uno de los primeros bancos en ofrecer una nueva plataforma para el acceso de servicios financieros a través de dispositivos móviles fue Grupo Financiero Banorte. De acuerdo a la Dirección de Innovación Tecnológica y de Negocios, Banorte implementó una plataforma denominada m-banking, con la finalidad de atraer clientes sin acceso a otros canales bancarios formales. El proyectó desarrolló una red celular interna, sin embargo problema radicó en que el dispositivo móvil común no era compatible para la aplicación. En un segundo esfuerzo Grupo Banorte desarrolló un sistema de banca móvil a vía SMS a fin de permear en las comunidades marginadas, sin embargo el alto costo de los mensajes de texto, como consecuencia del monopolio existente en telefonía móvil, representa un reto para la inclusión financiera a través de estos modelos.
Instrumentos financieros para la población marginada
Ante el incipiente avance entre la tecnología e instrumentos financieros para la población excluida, Banco Compartamos, una entidad financiera regida por la Comisión Nacional Bancaria y de Valores, y Accion, una organización de carácter global dedicada a desarrollar oportunidades económicas para personas que viven en ambientes desfavorables, han emprendido acciones conjuntas para ofrecer créditos a microempresarios para comenzar o expandir sus negocios, al tiempo que contribuyen al desarrollo de sus comunidades.
Compartamos se origina como una asociación civil por el esfuerzo de la organización juvenil Gente Nueva, cuya misión era mejorar la calidad de vida de las comunidades marginadas en México, por medio de acciones sociales, programas de salud y nutrición, apoyo a microempresas familiares y otras alternativas generadoras de ingresos. En 1995 lanzó el programa piloto de banca para los pueblos, que implicó ofrecer un préstamo básico para financiar el capital de trabajo; la autosuficiencia operativa del piloto dio paso a una institución microfinanciera con el mejor desempeño en el mundo y de las más grandes en América Latina. Banco Compartamamos ofrece actualmente apoyos generadores de ingresos a grupos de solidaridad y préstamos individuales, se rige bajo la misión de generar valor social, económico y humano aplicando un modelo de responsabilidad social y sustentabilidad, por medio del cuál se crea un círculo virtuoso de solidaridad y compromiso para lograr el desarrollo integral de la comunidad.
Dentro de su programa de acción, Banco Compartamos trabaja alrededor de cuatro áreas principales:
- Responsabilidad corporativa, un estímulo para que por medio del voluntariado se promuevan redes de participación entre colaboradores, familiares y clientes a través de programas enfocados a la acción ciudadana en materia ambiental.
- Comunidad, para que las redes de participación voluntaria recuperen y reacondicionen espacios públicos como parques y escuelas.
- Fondo de RSyS, para apoyar a organizaciones de la sociedad civil a realizar proyectos de salud y educación.
- Educación financiera, para mejorar la toma de decisiones entre colaboradores, clientes y la comunidad en general para aprovechar las oportunidades con base en la utilidad recibida del mercado financiero.
Por su parte, Accion busca la innovación en el acceso a servicios financieros a través del desarrollo de las mejores prácticas y estándares en la industria para beneficiar a comunidades marginadas. Con la ayuda de una red de expertos en microfinanzas, Accion brinda asesoría técnica para construir capacidad institucional que pueda proveer servicios financieros de alta calidad.
En conjunto, Accion y Banco Compartamos han emprendido acciones en beneficio de la sociedad mexicana. Accion ha compartido su experiencia en el préstamo de créditos en comunidades urbanas, servicios al cliente y conocimiento de los mercados locales en los que opera para mejorar la capacidad técnica de Banco Compartamos, al tiempo que el banco expande su capacidad operativa a más comunidades.
Asimismo, Accion ha brindado ayuda invaluable a Banco Compartamos en el desarrollo, implementación y monitoreo de servicios financieros como préstamos y seguros para hacer del banco un proveedor con los más completos servicios de microfinanzas. Con un asesor permanente asentado en la Ciudad de México, Accion ha contribuido a mejorar sustancialmente la eficiencia y la productividad en el otorgamiento de créditos, contribuyendo también al posicionamiento del banco en el mercado.
Resultados
En vista de Banco Compartamos está en camino de convertirse en una banca comercial para ampliar sus redes de acción de préstamo de crédito y contratación de seguros de varios tipos, Accion ha comenzado el desarrollo tecnológico de una plataforma con base en la red urbana de servicios para atender a comunidades rurales a través de dispositivos móviles que permitan el rápido acceso a los servicios bancarios, así como para el aprovechamiento de las remesas y ahorros.
Por medio de la asesoría técnica para la diversificación de productos para los segmentos de bajos ingresos, Compartamos ha logrado extender créditos por más de $400,000,000.00 M.N. y ampliado su base de clientes a aproximadamente 2 millones de personas.
Así mismo, el modelo financiero y de responsabilidad social de Compartamos, promueve la capacidad de pago de los clientes además de mejorar la calidad de vida de las comunidades generando valor social, pues bien su lema responde a su compromiso de "llevar oportunidades al mayor número de personas en el menor tiempo posible".
La inclusión financiera promueve alternativas para las personas que han estado excluidas para incrementar su capacidad generadora de ingresos, mejoría de su entorno y protección financiera, sin embargo, aún se presenta un gran reto para desarrollar modelos que permitan un uso eficiente y a bajo costo para abatir las desigualdades. En este sentido, ante las problemáticas de implementación, como el monopolio de la telefonía móvil ¿de qué manera se puede promover el uso de la telefonía celular para la inclusión financiera de las personas marginadas?
Rede Jovem: Mapping neighborhoods with mobile phones
Catalina Gomez, Rio de Janeiro Community Manager
Until very recently, only the better-off neighborhoods in Rio were able to explore local cultural life and entertainment options online. Today, however, it's possible to get updated and geo-referenced information about the region's history and cultural life, as well as where to shop and eat in some of the city's poorest neighborhoods — such Complexo da Mare, Complexo do Alemão, Santa Marta, Pavão Pavozinho, and Cidade de Deus. All this is possible thanks to an initiative called Wikimapa, created in 2009 by Rede Jovem, an organization that has been working for more than 12 years to promote social inclusion among low-income adolescents though the use of technology.

Wikimapa aims to enable young people from Rio's low-income areas to map interesting sites and relevant activities in their neighborhood and promote greater knowledge and understanding of its culture and history. The project first developed a wiki system that can be accessed through a desktop or mobile web browser. Next, a mobile application was developed using GPS to allow users to contribute to the detailed mapping of areas in their own communities, down to the street level. Then the project was implemented in each of the five communities mentioned above.
In order to implement the project, Rede Jovem works with about 10 adolescents from each neighborhood, who act as community mobilizers. These youth are given mobile phones as their main working tool. They all receive a small "grant" for four hours of service a day during their free time from school. These mobilizers are the ones who tell their friends about the initiative, and help map the sites using the Wikimapa technology. In addition, these mobilizers engage more people to serve as "Wiki reporters" — contributing bloggers who report on cultural and sporting events in the community, and also on the history of streets and iconic areas of their communities. Thus far, more than 2,000 people have downloaded the application to their phones; there are about 2,000 registered contributors; and more than 5,000 points within the five communities have been geo-referenced — the Complexo do Alemão alone has more than 1,500 geo-referenced points.
According to Patricia Azevedo, Strategic Coordinator of Rede Jovem, the Wikimapa initiative has served to engage youngsters with the cultural activities offered by local NGOs and community groups. It has also helped to promote a positive identity among neighborhood residents who, up to now, didn't know much about the interesting histories of their communities or what resources are available about them. Outside of the communities themselves, the project is helping to generate a positive understanding of the many great things taking place in low-income neighborhoods that few people knew about before. Mayanara de Farias Xavier, a 21-year-old Wiki reporter from the Complexo do Alemão, reports that her greatest aim as a Wikimapa reporter is to "show that the community has many options and positive things going on besides the violence that is associated with the place."
Now that Wikimapa is present in five communities, Rede Jovem has plans to consolidate its work in these areas and expand the number of users and contributors. This is all done through the community mobilization and engagement carried out by their young local contributors. Rede Jovem is also in the process of expanding its work to other communities like Rocinha, Mangueira, and some other neighborhoods in Rio's metropolitan area, especially within the Baixada Fluminense. It is clear that the project is scaling up rapidly: for example, it will begin to implement activities in São Paulo, which will create interesting opportunities for exchange between these two cities.
According to Azevedo, additional future challenges include updating the application to Android telephones, as well as finding additional co-sponsors of the initiative, which up to now has counted VIVO telephone company as its main supporter and provider of mobile phones.
We invite you to check the web site, download the application, and discover what is going on in Rio's neighborhoods, especially those that are less well known and explored....
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Comments
Acceso a la dinámica de la economía
El proyecto de M-PESA facilita a la población el acceso a los mercados, puesto que las transferencias de bajo costo reducen la vulnerabilidad de las personas en las ciudades al tener acceso al capital financiero para poder participar con igualdad de oportunidades en la dinámica de la economía. No obstante uno de los elementos esenciales debe de ser la capacidad para la obtención del ingreso, al igual que la capacidad de ahorro para escalar el proyecto en la provisión de micro créditos.
Do Women Have Mobile Phones
I hadn't thought of this while I was writing this article, but I wonder how many women own their own mobile phones in India's slum areas. The question came to me after reading this article in the Guardian (http://www.guardian.co.uk/education/2012/mar/13/mobile-learning-research...) that not only calls for more evaluation of mobile technology's effectiveness in English language learning, but brings forth a potential gender bias with phone owning:
"The researchers have found that the mobile phones tend to be appropriated in the home by male children in the family, and that 'mothers were giving a lot of implicit approval to the boys to be monopolising the technology.' This points to important gender and cultural issues that should be, but often aren't, evaluated in all m-learning projects to mitigate the risk of these factors significantly skewing other results."
If this is the case, then I wonder what the numbers are for expecting and new mothers in these areas. The case may also be that men withhold access to cell phones, or that women choose to spend their little extra money on items for childcare. All interesting questions to consider when thinking about who has access to the phones to get the information. Mobiles may seem ubiquitous, but there are so many poor women I work with in the slums who rarely have regular access to their own phone. They often are out of service, lost or broken, and there usually isn't extra money to replace them quickly.
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