Towards a Cashless Economy: Microfinance’s Strategic Leap into Digital Financial Solutions
Money has been defined by economists as anything commonly accepted by people in exchange for goods and services; it is the medium of exchange. Therefore, money can be anything that can replace or represent wealth and facilitate exchanges between two parties for goods or services. The evolution of technologies allowed the conception of sophisticated and complex paper money for security purposes. But now with the incredible development of mobile and communication technologies, virtual money or “e-wallet” is the way to go.
Technology allows connection between bank accounts and mobile handsets in a secure and reliable manner. ADFinance, developed and now provides solutions to microfinance institutions to enhance financial inclusion in Africa where small businesses and low-income individuals still lack access to financial services or have time-consuming procedures to get them. Previously Mobile Banking assisted financial institutions’ customers in interacting with the Core Banking System through their mobile handsets to get transaction alerts, balance inquiries, and mini-statements of their bank accounts as well as make transfers between bank accounts. Now with the latest developments, anyone with a mobile handset can have access to all the basic financial services such as deposing or withdrawing on top of the already existing services at any time and from anywhere just with a telecom network.
Customers of Micro Finance Institutions (MFIs) can make transfers between accounts of the same or different institutions, get credit installment reminders, and interact between the Core Banking System of the MFIs or the e-wallet of the client. It is also possible for the customer to transfer money from a mobile money virtual account to an account in the MFI or vice-versa as an alternative to traveling to the nearest branch to make the transaction. In addition, this service reduces significantly the operational costs of running branches while expanding their outreach hence a win-win situation for MFIs and its customers.
The ADBanking System was designed with attention to detail for security and reliability with the collaboration of Telecom operators to ensure that customer and their MFI will use it without worries about their monetary transactions. A highly qualified team of software engineers ensures 24/7 security and maintenance of the service hence aligning well with the current movement to the cashless economy, an upscaling deployment of branchless solutions being a game changer as more and more people have access to mobile handsets and almost all services are going to be digital.
Therefore, borders and distance are no longer going to be barriers to transactions and connection among humans. Even if the current trend of cryptocurrency and blockchain exists, solutions for a cashless society are still adapted to the latest technologies in security and efficiency for Africa. ADFinance developed solutions to support even the excluded portion of the rural population by creating accessibility to the latest developments in the domain of the microfinance industry.
