Expanding Outreach in Malawi: OIBM's Efforts to Launch a Mobile Phone Banking Program
This case study explores efforts of the Opportunity International Bank of Malawi (OIBM) to implement mobile banking (m-banking) for its microfinance customers. In early 2008, OIBM decided to construct a bank-led model of m-banking in order to offer Malawi's poor people the benefits of access to financial services through m-banking. M-banking could build on the banks existing ICT tools and would be a beneficial complement to OIBM's already strong technology offering. To shape the program, OIBM undertook steps to:
- Understand customer needs;
- Research existing m-banking efforts;
- Determine a business model;
- Assess internal capacity and the need for outside help;
- Address technical challenges;
- Build an agent network;
- Secure regulatory approvals;
- Plan pilot testing and staff training;
- Plan promotion and launch.
If successful, OIBM's m-banking program should be profitable for the bank and transformational for the people of Malawi. The bank's experience illustrates the challenges of developing a program from scratch, and demonstrates the fluid and evolving nature of the m-banking industry.
