Mobile Core-Banking Server: Cashless, Branchless and Wireless Retail Banking for the Mass Market

Abstract

Banking is essential to modern economies and nearly half of the world's people are unbanked and underserved by banks. The high operating costs of banks passed on to retail customers are driving them away who otherwise should be in the financial system. Without having access to the financial system the unbanked and rural poor have little means to engage in mainstream economic activities. A mobile phone-based banking system was designed to provide retail banking services to the world's unbanked population and rural poor of 2.2 billion based on a cashless banking system that reduces operating cost and reduces lending risks and therefore can lower the current exorbitant rates charged on retail lending and micro-credit. A core-banking server on a low-cost mobile device (an Android tablet) could serve over 15,000 micro-banking customers. The system definitely appears to be suitable for most retail banks or microfinance institutions.