MoreMagic and mBank partner to offer 'Mobile Branchless Banking' in Emerging Markets

On December 3rd 2013, MoreMagic (a subsidiary of Oberthur Technologies) announced its partnership with mobile services specialists mBank (affiliated to PlaNet Finance group) to offer 'mobile branchless banking' in emerging markets.

Oberthur Technologies (OT) is French provider of identification & security solutions based on smart card technologies. OT offers end to end solutions in the Mobile Financial Services, Smart Transactions, Machine-to-Machine, Transport & Access Control and Digital Identity areas. OT employs over 6000 persons globally with over 50 sales offices and 10 facilities. The company serves clients in 140 countries.

This collaboration brings together MoreMagic’s m:Wallet solution and mBank’s expertise in branchless banking services. It creates an extended mobile branchless banking offer. The m:Wallet has already supported various services like money transfers and merchant payment. It is now set to include a range of microfinance services like credit, insurance and loan.

How does it work?

  • When a user applies to mBank for a loan using m:Wallet, the agent passes on the application to the bank through smartphone.
  • Funds are made available in real time in the user's account once the application has been approved.
  • The m:Wallet platform then displays the various accounts held by the user which includes loan and savings accounts.

'The fully packaged offer we are providing with mBank will allow mobile operators and banks to reach an untapped customer segment and to ensure the profitability of their mobile money offers,' said Pankaj Gulati, CEO of MoreMagic. 'Mobile microfinance services are expected to create a significant shift in the take-off of mobile money with stronger adoption and usage, not only because they are matching the expectation of local populations for real banking services, but also because they will generate higher transaction volumes,' he added. The solution will also include back-office and core banking capabilities, business consulting skills and risk management tools.

We aim to serve millions of clients currently not reached by microfinance institutions and traditional banking. With its worldwide footprint in the telecom and banking markets and with MoreMagic’s expertise in mobile money, OT is a partner of choice to launch a Mobile Branchless Banking solution, stated Arnaud Ventura, co-founder of PlaNet Finance & mBank Group. Together, by serving markets that lack a comprehensive banking infrastructure and have a high penetration of mobile telephony, we will further contribute towards financial inclusion, he added.

Recently, Oberthur Technologies entered into a strategic partnership with First Data, a global provider of electronic commerce and payment processing services, to manage and promote EMV in the U.S. Oberthur technologies also rebranded itself as the ‘The M Company’ to establish itself in the digital security solutions space.