Altman Solon Survey Finds Trust in Mobile Service Providers Driving Mobile Money Adoption in Emerging Markets
BOSTON–(BUSINESS WIRE)–Consumers in Africa, the Caribbean, Latin America and Southeast Asia are bypassing traditional banking services in favor of cheaper and more convenient mobile financial services (MFS) tools on their smartphones, according to a survey of consumers in 17 markets by global strategy consulting Altman Solon. Widespread adoption of MFS is driven by existing relationships and trust between consumers and mobile service providers, with seven in 10 consumers (70%) saying they generally trust their mobile service provider.
Altman Solon’s Global FinTech Survey Highlights Widespread MFS Adoption in Emerging Markets. Previously unbanked consumers are embracing cheaper and more convenient tools than traditional banking services that are made available on smartphones. The shift from the safe to the phone presents significant opportunities for mobile operators and mobile money operators (MMOs) to enter financial services and usher in a new era of financial accessibility for consumers in many emerging markets.
Altman Solon’s survey found that MFS users were almost 10% more likely to be “very satisfied” with their cellular provider than non-MFS users, while six survey respondents 10 (64%) said that their use of MFS had increased their level of satisfaction. Respondents acknowledged that mobile money is easier to use, more accessible and more transparent than cash, highlighting its strong growth potential in these markets.
Other key data points include:
66% of survey respondents said they trust banks and financial institutions
51% of shops and boutiques that respondents visit regularly accept mobile payments, while a further 46% sometimes accept them
a majority of respondents expressed a willingness to pay, trade, or invest in cryptocurrency if offered by their mobile carrier
“The survey highlights how MFS is opening many doors for mobile providers while creating more transparency, affordability and affordability for consumers in emerging markets, especially those who have never participated in the financial system. previously. With the growth of FinTech, crypto and Web 3.0 super-applications, the MFS landscape will continue to be reshaped in the future,” said Matt Birtch, Director of Altman Solon.
“For many people living in the regions we studied, including Latin America, mobile phone providers are the most important consumer relationship. There are significant benefits for mobile phone providers to expand their relationships with existing subscribers and attract new ones Altman Solon’s report reveals that there are lessons learned from recent MFS deployments and understanding consumer behavior that can help mobile providers and their partners ensure successful implementation,” said Daniel Torras, partner at Altman Solon.
About Altman Solon
Altman Solon is a global strategy consulting firm working in the telecommunications, media and technology (TMT) sectors. Our consultants are united by passion and intellectual curiosity for TMT and work with market leaders, challenger brands and investors in these industries.
Our collaborative team structure combines industry experts and data analysts to apply their experience and skills to create actionable solutions for global TMT players. We help our corporate clients identify, develop and implement corporate strategies, new market entry approaches, digital innovation and global mergers and acquisitions. We help our investor clients understand the markets, conduct due diligence and confidently make high-stakes decisions.
For more information, please visit www.altmansolon.com.