Cameroon: A study urges the government to develop m-banking

Mar 26, 2013

A new study by the Ministry of Finance of Cameroon calls on the government to promote the development of mobile banking, in order to realize the untapped potential of financial services.

A new study by the Ministry of Finance of Cameroon calls on the government to promote the development of mobile banking, in order to realize the untapped potential of financial services.

Between six and twelve million of Cameroonian people - out of a population of 20 million – are seeking access to basic financial services without success, according to the study.

Thus, only a million people own a bank account - which represents a banking rate of five percent - and microfinance had 1.2 million customers at the end of 2011.

According to this survey, this limited access to banking services is due to a lack of diversity in microfinance products, high interest rates, inadequate loan amounts, short repayment terms and a lack of price transparency, Jeune Afrique reports.

The report also cites an uneven geographical distribution of bank branches, the difficulty for Cameroonian people to provide guarantees and the isolation of rural areas.

The study calls on the government to develop mobile banking solutions, given that more than 75 percent of the population own a mobile phone.

M-banking services have launched in Cameroon in August 2010 with MTN Mobile Money, followed by Orange Money in 2011.

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