NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, June 14, 2012

The U.S. Agency for International Development, tasked with the administration and distribution of international aid from the U.S. government, announced it is forming a new partnership with Citi. The partnership is aimed at providing financial inclusion for the world’s un- and underbanked by encouraging “mobile money” technology in developing countries. It was announced at the USAID Frontiers in Development forum held at Georgetown University.

“Mobile money is a game-changing endeavor with the potential to improve lives, create jobs, catalyze new enterprises and expand financial inclusion, particularly in the emerging markets that are critical to the growth of the global economy,” said Citi CEO Vikram Pandit.

Pandit said Citi is proud to work with USAID to advance mobile money adoption with tools and solutions that eliminate barriers to access, improve security, and enhance education.

Though there are nearly five billion mobile phone users globally, nearly two billion of them have no access to basic financial services. Their only option is cash, which opens them up to theft, fraud and high costs for lending and remittance.