Innovative financial executive Garad Nor has spent more than 15 years overseeing Tawakal Express and Banana Pay, two of the largest money transfer companies serving East Africa. Aware of the major impact of mobile money on the livelihoods of underbanked Africans, Garad Nor has increased the use of advanced financial technology (fintech) within his money transfer services.
Advances in fintech have removed many of the barriers that precluded people from obtaining loans from traditional banking institutions. Mobile money applications have enabled underbanked populations such as people living in rural communities or small-scale farmers to have access to credit. This influx of capital can fuel activity in the local economy, boost agricultural productivity, and increase educational attainment.
Mobile money has also made it possible for people without access to brick-and-mortar financial institutions to store their money safely in digital wallets or online bank accounts. According to a study examining the saving behaviors of mobile money users in Tanzania, Uganda, and Kenya, people with access to digital accounts were 10 percent more likely to have savings than non-account holders. A cushion of savings can be used to pay for an unexpected health emergency and reduce the likelihood of falling deeper into poverty.
