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The study provides several insights from one of the first major initiatives dedicated to offering m-banking services to the poor- WIZZIT. It shows that m-banking services are valued by poor people in South Africa and are more affordable than traditional banking.

Key arguments made:

• Early adopters of WIZZIT have low incomes, but are wealthier and more technologically and financially sophisticated than most poor people in the country.

• M-banking providers must build greater awareness of their services and must find the right balance between human interaction and technology to appeal to more low-income customers.

• Perceptions about banking, m-banking, and technology are important in determining the rate of adoption. Income alone is not a sufficient indicator.

• The study argues for a deeper exploration of these perceptions and how they may be used to segment the low-income market. For example, the study reveals that some South Africans who are unemployed and earn no personal income seem to believe that they do not need banking services, cannot afford them, or are ineligible to have them.

• With a clearer understanding of this unemployed and unbanked segment, m-banking providers may discover better results in branding their service as a safer, more convenient payment mechanism—rather than as a better bank account.

• Ultimately, all poor people need financial services to increase household incomes, build assets, and become less vulnerable to crises. With millions of mobile phones already in poor people’s hands, there is tremendous potential in the power of network operators, banks, and new entrants to deliver financial services through this channel.

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