ISYS 3215 Lecture Notes - Lecture 10: Virtual Economy
8 May 2016
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Document Summary
An efficient financial system: decades of research: efficient financial systems are key to economic growth and poverty reduction, one major reason financial markets in the developing world lack efficient is high transaction costs. Financial systems have been bank based: branches are few and far between and accounts expensive to maintain. Mobile money: first four years: huge adoption rate, no back end payment system (bank account structure, need to put money in my phone go to agent. Cash is backing up all the money in the virtual economy. Bought of virtual money where money moves from person to person money switches from folder to folder: study how affected peoples lives. Makes no sense to cover people in some areas because there is only 5% of the population. Start everywhere and then fill in the density understood you needed to have your product everywhere. What did mobile money do: financial health/wellbeing is resilience, the ability to respond to negative events.
