Tech paves way for financial access

Harnessing the power of technology could dramatically increase access to financial services for poor people around the world says CGAP, a microfinance group based at the World Bank, and the Alliance for Finance Inclusion, a global network of policymakers in developing countries, writes Cellular-News.

But it will only happen if regulators and private firms strike the right balance between protecting customers and allowing innovation in branchless banking to flourish - a balance that is now delivering results in some countries, especially in Africa.

"Poor people need a safe way to save and send money, and African innovations like M-Pesa and M-Kesho are showing us all how to reach the billion people worldwide who have a cellphone but no bank account," said Alexia Latortue, acting CEO of CGAP.

A Hamilton credit union is blazing a new technological trail for the financial services business in Canada, reports TheSpec.com.

Earlier this month, FirstOntario Credit Union welcomed PAT to its teller staff - a banking machine with an audio-visual connection to a real, live teller in a remote location. "We think this is going to provide a very efficient and effective service," said FirstOntario president Kelly McGiffin.

Developed by Utah-based uGenius Technology, PAT is an effort to merge the convenience of an ATM with the personal touch of a teller. The machines are capable of doing practically everything that can be done over the counter with a live teller, including cash and cheque deposits, cheque cashing, cash, coin and cheque dispensing, account payments and transfers, and new account and loan applications.

A 13-year relationship with IBM and its Websphere application integration server has been critical in helping ING Direct of Canada quickly build and operate a mobile banking application, a bank official said, states Computerworld.

ING Direct introduced a mobile banking application and a mobile banking Web site for Canadians nearly three months ago on BlackBerry and iPhone and on 7 June added the iPad, said Charaka Kithulegoda, VP of software development at ING Bank of Canada. The application relies on Websphere application servers.

The banking application has seen nearly 50 000 unique visitors so far, he said. The mobile roll-out is in its infancy, but Kithulegoda said he feels the application's return on investment is already worth more than the costs involved.