Among the more obvious reasons is the simple elimination of overhead and initial construction costs for new bank branches. Though such costs are shared by all banking customers, it requires a sizeable initial investment on the part of the bank, and customers might not be plentiful enough to make the sharing of these costs feasible for either potential customers or the banks. With mobile banking, not only are the overhead costs of a physical branch eliminated, but many transactions can actually be conducted without any contact between the customer and bank personnel. This further eliminates costs associated with branch banking while allowing more affordable access to more complex services. This reduction of overhead costs is observable in other forms of branchless banking, as well, as can clearly be seen in the massive reduction in costs when point-of-sale third party agents were introduced to the microfinance arena (CGAP a 2009). Additional transaction cost savings are introduced by mobile banking with the removal of these third party agents in a large number of transactions; only cash transactions require the physical presence of an agent. The spread of mobile phones puts technology capable of bank interfacing directly in the hands of many potential customers, increasingly including the poor (CGAP a 2009). The cheaper technology costs and availability of mobile banking devices is responsible for the spread of microfinancing...
Simple marketing programs to make consumers aware of the more complex baking features available to them do not exist, and instead fee-driven services such as transfers and payments are heavily promoted (WorldBank 2008). As the spread of mobile technology will almost certainly continue to be advertiser-based, effective strategies for marketing the more complex but more economy-boosting services that microfinance institutions are capable of providing will need to be developed. In addition, though their costs are significantly lower, third-party agent fees are subject to more volatility and variance than branch fees, which could possibly harm the perception of such agents and microfinancing as a whole when the handling of cash is concerned.
FDI Ireland experienced a brief economic boom in the mid-1990s, which was a time of relative boom across the Western world. A number of factors contributed to this boom, including a low corporate tax environment, and Ireland positioning itself as a source of foreign direct investment from the U.S. In particular (EC, nd). With an educated, English-speaking workforce and increasing labour productivity, Ireland was successful in repositioning itself as a low-cost
Bangladesh Decisions about foreign direct investment can be complex, and require an incredible amount of information in order to evaluate the different options that a company needs to consider. The best methods of evaluation will apply a consistent set of criteria across a number of different variables and use these for all of the different countries. The company will also want to understand which key variables are the most important. How
cell phone technology has literally changed the world. There are roughly 3.5 billion cell phone users globally, which makes cell phones more common than personal computers with a greater impact than the Internet. Cell phones provide increased mobility, increased transparency beyond borders, and the ability for people in the developing world to have access to banking, information, and global technology like never before. The modern cell phone, though, is
As a result, economic development was redefined in terms of reduction or elimination of poverty, inequality, and unemployment within the perspective of a growing economy (Mamede & Davidsson, 2003). Research indicates that entreprenuership can be both the cause and effect of economic development in the sense of wealth distribution. Countries in which wealth is concentrated in the hands of a small fraction of the population face greater difficulties in coordinating
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