Digitizing Money For The Poor

I have an enormous interest in finance for the people at the very bottom. I think magical advances are possible. And there is also a lot of money to be made.

Exponential Finance: Who Will Be the Instagram or Uber of Finance?

Instagram was acquired for a billion dollars the same year Kodak went bankrupt. Though Kodak invented the digital camera behind Instagram’s business model—they failed to fully embrace it and paid the price. Uber is a five-year-old transportation company worth $40 billion, and they don't own a single car or bus. ....... relatively small organizations are rapidly rising up to take on big traditional players with little more than an app on a smartphone. So, what models are leading contenders to become the Instagram or Uber of finance? ..... As smartphones become ubiquitous in the developing world, it's possible many of the world’s unbanked billions in developing countries will skip traditional finance, a little like how they leapfrogged landlines for cell phones. ....... bank-free, digital cash will be a force to be reckoned with. ........ blockchain’s potential is massive—not just for cryptocurrencies, but anything of value. The same technology that records and confirms Bitcoin transactions can, in theory, do the same thing for “a will, a deed, a title, a license, intellectual property, an invention, or any type of financial instrument.” ...... Machines doing what machines do best, and humans doing what humans do best. Better together than either one alone. ...... By more fully digitizing finance (parts of it are, of course, already digitized), we can supercharge commerce and reduce the cost of doing business. ...... Even now, the digital camera market is shrinking as point-and-shoot cameras are replaced by smartphones. ...... Reality has surpassed science fiction.

Related articles

• Will there be an Instagram or Uber of finance?
• Video: The Zoom on this Nikon Camera is Absolutely Insane (and Scary)
• Abra Wants to be the Uber of Digital Cash, Says Founder Bill Barhydt at Exponential Finance 2015

The Money Is Not Actually Moving

Economic Growth and the Production Possibility Curve (Photo credit: Wikipedia)

If all money is digital, and if M-Pesa is the future, not just in Kenya but also in the rich world, and if the blockchain technology does to money moving what the Internet did to information moving, as in bring the costs down to pretty much zero, then the money is not actually moving, is it? You are just managing accounts, you are adding and subtracting.

And that digitization allows for a potentially massive increase in the velocity of money. If the same dollar exchanges hands 200 times instead of 20, that is a ten times increase in economic activity and hence economic growth. Moving money should be instantaneous and free globally. Just like when you send email, there is no lag. In the old fashioned ways, it can take days for money to move. There is no reason why it should be that way. That "lag" is a tremendous drag on economic activity.

Related articles

• SimbaPay launches world's first international access to M-Pesa PayBill
• Safaricom sues Airtel in M-Pesa trademark dispute
• Startups are bringing mobile banking to remote villages
• Kenya's mobile firm launches cashless payment service to tea factories
• 76m Nigerians Are Hold Bank Accounts - EPPAN
• Bitcoin's Role in the Third World Economy
• Digital economy sets the stage to accelerate growth for African entrepreneurs
• Rich history, shared interests define China-Kenya win-win ties

Africa Unite

Kenya is like South Korea, on the cutting edge of mobile.

Kenya's Startup Boom

the emergence of a tech-savvy generation able to address Kenya’s public-health problems in ways that donors, nongovernmental organizations, and multinational companies alone cannot. ..... a nation where one in 25 is HIV-positive (10 times the U.S. rate) and AIDS, tuberculosis, and malaria are among the leading killers. ..... The health ministry wanted to let community health workers put information into the database directly from mobile phones ..... the Netherlands office of Bharti Airtel, the Indian telecommunications giant that also operates a mobile network in Kenya. The company proposed spending tens of thousands of dollars on mobile phones and SIM cards for the data-gathering task, and it said it would need another $300,000 to develop the data application on the phones. The total package ran to $1.9 million. ...... rounded up the four students. They spent the spring of 2011 at the CHAI offices, receiving internship pay of about $150 a month. They sat for days with the staff in the health ministry to understand the traditional way of gathering information. Then they pounded out the app and polished up the database software to allow disease reporting from any mobile Web interface. By last summer their “Integrated Disease Surveillance and Response” system was up and running at the ministry, obviating much of Bharti Airtel’s proposed costs ...... Mobile phones are lifelines for Kenyans. Some 26 million of the nation’s 41 million people have phones, and 18 million use them to do their everyday banking and conduct other business; most use a service called M-Pesa, which is offered by the country’s dominant wireless provider, Safaricom. If mobile phones could play as big a role in Kenyan health care as they do in Kenyan financial transactions, the effects could be profound...... the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), which spends $500 million per year in Kenya alone. ...... Sub-Saharan Africa is home to more than two-thirds of the 33 million people estimated to have HIV worldwide. ..... more might get done if local hackers would get together, write more code, and start some companies that had sustainable business models. ..... the country’s first truly mass-market Android smart phone went on sale in 2010, for $80. ..... “We can’t replace the doctors, can’t replace the hospitals, but we can improve access to relevant information.” ....... Soon it will be available through SMS—an essential feature, because 85 percent of Kenyan mobile-phone owners don’t yet have Web access. Kyalo hopes to aggregate other medical apps on the platform and ultimately sell sponsored messages from pharmaceutical companies, health-care providers, and others. ...... “Government is the hardest nut to crack” ..... Safaricom announced that it was launching its own doctor-calling service. In a nation with few doctors and no free 911 service for medical emergencies, residents can now at least speak to a doctor for about 25 cents per minute. ....... She had traveled 50 kilometers to see a specialist for her breast cancer, and now she was alone, exhausted, and at the wrong place on the campus. A pale blue cataract blighted her left eye, and a look of fear and pain shadowed her face as she rested her head against the pillar ...... Last year USAID, a major funder of health projects in Kenya and other developing countries, requested proposals for help creating a unified, Web-based national health information system that would be “host country owned.” The five-year, $32 million contract went to Abt Associates, a consultancy based in Cambridge, Massachusetts, which has done extensive work in global development projects. But although it has expertise, so does the new tech class back in the host country—which also has a long-term stake in the solution and no U.S. overhead. “If you talked about an RFP for $32 million at iHub, people would go nuts! You’d fund 500 startups for that,” CHAI’s Jackson Hungu says. “And this country’s public health delivery would be changed forever. I have no doubt about that.”

Related articles

• Kenyan officials impound two tonnes of ivory: police
• 638 illegal elephant tusks found at Kenyan port
• Warnings to Take Seriously for Kenya's March Election . . . and something to enjoy
• How it Was Freelancing in Kenya in 2012
• Kenyan ammo imported from Iran traced to militias in border regions
• France Telecom African Phone Bills to Drop Further, Girard Says - Bloomberg
• Safaricom, Commercial Bank Africa Start Mobile-Loan Service - Bloomberg
• 638 illegal elephant tusks found at Kenyan port, destined for Indonesia; elephant deaths mount
• Africa Calling! Can mobile phones make a miracle?
• International Volunteers and Interns Partake in Unforgettable Year-End Holiday Celebrations

The Olympics: On YouTube

English: 1985 International Olympic Committee postage stamp of the German Democratic Republic (Photo credit: Wikipedia)

For a guy who has never owned a television, YouTube will do the trick.

London 2012
NBCOlympics.com

Streaming the Olympics: How YouTube and NBC do it

3,500 hours of live coverage from the event on the web and through native apps .... A partnership with the IOC put YouTube in charge of the online video feeds for 64 countries in Sub-Saharan Africa and Asia, including India, Singapore, Kenya, Ghana and Malaysia. ...... “We are using the backbone of a pretty scalable video delivery network”

The Olympic Games are quite a celebration of humanity. I want the next World Cup on YouTube as well, live as well as archived. .

Related articles

• Boris Johnson's odd Olympic welcome goes viral - video
• Olympic Organizers Rush To Delete Leaked Opening Ceremony Footage From YouTube
• YouTube, Google+ to stream Team Kenya live
• YouTube will live stream HD Olympics coverage to 64 territories in Asia, Africa
• 2012 Olympics will be streamed live on YouTube in Asia and Africa
• Youtube will phase out all anonymity
• YouTube invites you to cheer for Indian athletes at the London 2012 Olympic Games
• U.S. Olympic Team rolls out new channel on YouTube
• YouTube To Fight The Trolls By Making Them Use Their Real Name [Updates]
• Thousands of YouTube partners now make six figures a year [NewTeeVee Station]

Mobile Banking For The Unbanked

Image via Wikipedia

Banking Technology: Mobile Banking For The Unbanked: Of the 6.9 billion people on our planet, just 30% (2.1 billion) have bank accounts. But 75% – 5.2 billion people - have mobile phones. ..... In Africa, bank penetration runs at between 10 and 50% – while mobile comes in at 40-100%. In Asia-Pacific, the figures are 20-60% for bank penetration and, again, 40-100% for mobile. And in Latin America, it's between 30 and 60% for bank and 60-80% for mobile. ..... it will be 2015 before most consumers in the developed world use their mobile phones to manage payments. ...... By contrast, while there is no great sense of urgency about mobile banking and payments among consumers in developed markets, in the developing world there is a strong appetite for mobile. ....... In these emerging markets, mobile banking could bring about a fundamental shift in the consumer experience - giving many millions of people who have never had access to bank accounts or to credit and debit cards the opportunity to quickly, easily and efficiently pay for goods and services and tap into the convenience economy those of us in developed markets now take for granted....... a disruptive technology that could unseat them and make way for more agile players with a closer relationship with the end customers and a track record of servicing them? ...... In March 2007 Safaricom, the leading mobile operator in Kenya, launched an SMS-based money transfer system that enables consumers to deposit, send and withdraw funds using their mobile phones. Use of M-PESA skyrocketed, with the system quickly being adopted by more than 35% of Kenya's adult population. The winner here is clearly the mobile operator. ....... The right regulation needs to be in place if mobile banking and payments services are to be really safe for consumers. ...... . The banks have strengths that the mobile network operators cannot boast, but they also need to tap into the agility and the reach of the mobile network operators, and the technology of the device providers....... when it comes to innovation in mobile payments and financial inclusion, collaboration is key: whether it is between banks or between banks and the other key mobile industry players.

Just like mobile phones have been tools for democracy activists across the Arab world - very much still unfolding - the mobile phone can also be a tool to cure poverty. I think it is the most potent of all tools. And I expect its capabilities to, if anything, expand.

In the Global South, mobile is about leapfrogging. There are steps you skip.

Kiva Is In Nepal

I have been looking for that first country to go into with my microfinance startup, and it is amazing how I have gone all over the world. And now I am thinking Nepal, the country where I grew up.

Having Kenya And Chinatown Thoughts

Identity And Collective Identities

Image by Getty Images via @daylifeOne of the highlights of Obama 08 for me was this conversation I had with Barack's sister Maya at the downtown Manhattan headquarters late in 2007. I talked to her about a very personal connection I felt with the guy. I asked her about her name. It is an Indian name, Maya, I said.

It was Maya who articulated it for me. She said, "He walks between worlds." That captured it for me. It was then I realized why I connect with the guy so very personally.

Barack Obama walks between worlds.

Mobile Phone Banking: Major Boon To The Last Mile Of Microfinance

Image via WikipediaOf all the technologies that I see that can be put to use for microfinance - and I see a lot - the one that most stands out is mobile phone banking, the m-Pesa kind like has spread like wildfire across Kenya.

It is because the last mile is the most complex in the business. And mobile phone banking comes across as this gold standard that can help cut through the thick of all sorts of social, cultural, and bureaucratic issues. This is a case of simple technology beating human flailings to the dust.

Mobile phone banking reduces banking to simple transactions. You do it one simple transaction at a time. And the chips fall in place just fine. Mobile phone banking is like a machete with which you cut through the green thicks as you wade through a tropical forest.

The mobile phone is in a unique position to deliver all sorts of other goodies that will help transform the business. This decade belongs to the mobile phone.

Bihar, Darbhanga

Image via WikipediaI am increasingly thinking in terms of India. More specifically the great state of Bihar. Specifically my birthtown of Darbhanga. I am thinking in terms of Darbhanga as the place I want to start with.

I know the terrain. I know the state language, the national language, the local languages.

India has been the largest microfinance market in the world. Bihar is India's poorest state.

But I need to do my homework first.

Top Discussion At A Top LinkedIn Microfinance Group

Image via WikipediaA discussion I started a week ago (and kinda forgot about) at a LinkedIn group with over 1200 members has become the top discussion at that group. The group is Microfinance Focus. This activity has made me take a serious look at LinkedIn for the first time. This thing is working, yo.

This has also made me look at India all over again. India was the country I started with in terms of where I wanted to go. But I was advised that the Indian government makes it very hard to bring money into the country. It is much better to start with some middle income country in Latin America. So I am thinking Costa Rica, more recently Paraguay. Much more recently I have been thinking Kenya. But I have had this gnawing feeling that a Bihari needs to be thinking Bihar.

Slumdog Millionaire: A Movie About My People

Having Kenya And Chinatown Thoughts

Image via WikipediaMy startup is not even officially launched yet, and we already just went through a major reorganization. Some early people parted ways. I am blaming it on too much partying. A lot of early Facebook people left saying it is not easy to have a friend for boss.

I am now in touch with a major social media talent.

"The best people you can recruit are already working for someone else."
- Sam Walton

I started out with India thoughts. I got nudged towards Latin America. You have to start out in a middle income country first was the suggestion. I said okay. But now, with the reorganization, I got a clean slate all over again. And I find myself thinking Kenya.