The digital revolution is in full bloom and technology is being used to solve the world’s most challenging problems, yet traditional banking excludes many of the world’s poorest from taking advantage of the full fruits of the fi-nancial system. Especially in developing countries, implementing mobile fi-nancial systems can speed financial inclusion and spur economic growth. There is space for regulatory reform that addresses concerns with data security and consumer privacy yet does not stifle innovation. Throughout history, resistance to innovation has generally proved futile, and countries that refuse to change risk missing opportunities.
How to Leverage Technology to Sustain Creative Initiatives and Promote Social Change
1. How to Leverage
Technology to Sustain
Creative Initiatives and
Promote Social Change
Professor Eleanor Lumsden
Golden Gate University School of Law
30 November 2017 | Parsons School of Design| New York,
NY
2. THE PROBLEM:
FINANCIAL EXCLUSION
Implementing a
mobile financial
system in Jamaica
would provide
financial access to a
broader swath of the
population.
77.9% - 86% of adult
Jamaicans have
limited access to low
cost and safe
payments;
Only 12% own the
types of accounts to
transfer money, write
checks or make credit
card payments.
5. TECH INNOVATION
IN THE EMERGING WORLD
77% (or 5.3
billion) of the
world’s
population are
mobile
subscribers
(m/s);
109 million m/s
use their phones
to make
payments and
remittances.
In South Africa,
m/s use their
mobile phones to:
Pay for
groceries;
Withdraw cash
from stores;
Buy prepaid
electricity or
airtime;
Transfer funds;
and
Pay bills.
6. TECH INNOVATION
IN THE EMERGING WORLD
In Indonesia, rural
farmers use their
mobile phones and a
business social
network to access:
Info about
fertilizers and
pesticides via text
message;
Product reviews by
senior farmers; and
Crop prices and
weather patterns.
7. THE SOLUTION?
In a “Mobile Financial
System” (MFS) people use
mobile phones to access
financial services and
products that would usually
necessitate a bank account as
a precondition.
8. THE SOLUTION?
A MFS leads to:
Greater
economic
transparency;
Lower
transaction costs;
Employment and
small business
opportunities; and
Increases in GDP.
9. CHALLENGE #1
FINANCIAL CRIME
Financial crime is on the rise:
Eight (8) major pyramid schemes
that started in 2000 collapsed in
2001
Four (4) major scandals in 2006
and beyond
Lotto Scam in 2013
11. CHALLENGE #3
HISTORY &
CULTUREJamaica is marked by:
A huge informal sector;
Widespread mistrust of financial
institutions (and the
government); and
Reliance on ROSCAs or on
“partners,” rather than on
banks, as a savings vehicle.
