Risk Management in Mobile Money : Observed Risks and Proposed Mitigants for Mobile Money Operators

Mobile financial services offer significant opportunities for improving the efficiency of financial services by expanding access and lowering transaction costs. The rapid public acceptance of these services in many countries, including the Philippines, Brazil, India, Uganda, and Kenya has demonstrated that the technology is mature and brings real benefits to people who previously cannot access financial products or services. International Finance Corporation (IFC) has recognized the potential of using mobile money as a mechanism to deliver financial inclusion and, in November 2012 mobile money was formally adopted as a significant part of its access to finance work. With growing number of operations and a growing number of customers involved in the service, formalized risk management which balances the assurance of an enabling environment that is conducive to innovation and economic development against consumer protection concerns becomes more and more important. This importance is amplified in annexures A and B to this document, which highlight emerging fraud trends in Uganda