ICT solutions for financial inclusion: Reaching out to the unbanked in low resource settings

Most of the population in developing countries remains unbanked and financially excluded. On the other hand, mobile phones have proved to have the potential for mobile payments in developing countries. Mobile payment is financially inclusive, offering great potential for financial integration. Africa, by and large, is considered to be having a higher percentage of the unbanked. This paper concerns how the mobile payment potential can be leveraged in the context where most of the population is financially excluded. The paper reflects results of a study carried out in Malawi focusing on provision of ICT-based financial solutions to the unbanked in developing countries, particularly in the low resource settings of Africa using a technology called e-ticketing system. Mobile payments encompass a range of different payment types, some of which may not appeal in some contexts. In this study USSD communication mode was adopted, choice of which depended on its affordability, ease of use and responsiveness.