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Ben Lyon describes the valuable economic potential that exists in the cell phone industry for improving microcredit ventures in this mobile microfinancing keynote.
As the speaker demonstrates during his presentation, there exists what he refers to as a “premium on poverty” where the poor pay a significantly higher fee to attain less money than wealthier individuals. He also documents the fact that 36 per cent of those individuals receiving loans do not have access to traditional banking services.
To alleviate these problems, Lyon’s company FrontlineSMS:Credit was developed to create the opportunity for microfinance companies and loaners to track their loans and payments using the mobile network.
Incorporating the use of mobile technology in this sector will allow for loaners to lower the cost of mobile money adoption and for those taking out a loan to have easier access to their money and therefore, begin to create wealth for themselves.