Will Poor G2P Recipients Use Financial Services If Offered To Them?

Excellent comp study on conditional cash transfer programs in the 4 largest countries: Mexico, Brazil, Colombia and South Africa. Main lesson for Mexico: long way to catch up to move into main stream fin systems, away from pure cash. Lesson from Brazil: if private banks can’t build a strong agent network, it’s up to the government to deploy one, and then it can entice competition to the fin. system and thus make distribution costs lower when compared to pure cash or non-fin. payment transactions. Similar to any network, economies of scale are required to lower fixed costs. Individual banks can’t achieve critical mass for this type of market segment.
Highly recommended reading!

via Will Poor G2P Recipients Use Financial Services If Offered To Them? | Mobile-Financial.com.

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This entry was posted in Banking, Brazil, Financial inclusion, Mexico and tagged , . Bookmark the permalink.

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