The constant evolution of technology has led to greater growth in mobile phone services around the world, and our country is no exception. Thanks to the development of digital banking, Peru has achieved stronger integration into the banking system through mobile banking applications. In recent years we have seen the importance of banking and access to financial services for citizens.
Being bancarized implies being affiliated to a financial institution and making constant use of its services. Lately, many of these financial services have been transformed into digital platforms.
We have reached a point where, even in Amazon areas where technology is not as developed, you can find a market where the seller accepts a payment through a digital transaction. This is because in the last decade, access to financial services has grown substantially, expanding and reaching to more rural and remote areas outside the city.
In the following article by Guinea Mobile, we will give you an insight and explore the increase of bancarization in Peru.
Technology in banking and finance
Thanks to the SIM card, the mobile phone has become the most comfortable medium of interaction between a customer and his bank. By having an established platform on the mobile network, the bank can extend its coverage to places that were not possible before. These digital banking applications are very comfortable and easy to use. Therefore, a person who previously had to walk kilometers in order to make a transfer can now do it from home or work.
The main objective of mobile banking is to promote greater inclusion and integration into the banking system through the use of mobile phones. It is a means that benefits us all, since it facilitates the task of going and waiting for your turn at the bank. Quite the contrary, digital banking only requires an application on the mobile phone.
Yape: An application to transfer money
In Peru, we have the successful case of Yape, a free mobile application to make transactions that seeks to facilitate the lives of clients who need to do banking operations but don’t operate with a financial institution.
Yape has maintained a constant growth in users (yaperos), transactions, volume of money and associated businesses in recent years. During 2020 Yape moved “more than 7,192 million in a total of 106 million transactions, this is 7 times what was registered in 2019.” (management.pe) They handle a number close to 6 million users crossing through the coast, mountains and jungle of Peru. Yape’s platform is very comfortable, providing a very practical experience for its clients. Today, Yape continues to expand its borders, adding to its repertoire compatibility with more and more banks.
Yape’s success was consolidated through a strategy that concentrates the unbanked sector of the country, which is around 66% of the population. This sector of the market is Yape’s main focus and purpose. In other words, the strategy aims to include 2/3 of the population that do not have access to the more traditional bank services.
This way, Yape promotes financial inclusion towards the outskirts of metropolitan Lima. This implies the expansion of the application of digital banking to micro business throughout the country. These transactions represent more than 30% of all its operations.
The pandemic also had a relevant impact on the ways of payment in the country. This is why we should emphasize that Yape had an increase in users who downloaded the application as a result from the pandemic. This new context, where face to face has encounters have been mitigated by the virus, has motivated more and more Peruvians to join digital banking.
Wings Mobile Seller App – The Creation of Our Own Top-Up Network
In Mayb 2021, 6 months after the launch of Wings Mobile as a white-label MVNO on Guinea’s carrier-as-a-service platform, we realized that there were many places around Peru where very few people had bank accounts. Therefore, we decided to make a mobile application to empower all the Wings Sellers around to Peru to work as a top-up network. The app has a function that lets the seller’s use Yape or bank transfer to add money to their account, which they can use to top-up or sell SIM cards to clients who pay them in Cash.
The new seller app was an immediate success with total transactions of more than S/ 800,000 in the first 6 months after launch. It’s now typical for small towns that there’s one or two sellers that have the app and a bank account, they then transfer S/1,000 to the app monthly and help the others in the community to add money so they can stay connected through their mobile service.
Today, millions of Peruvians have access to a Smartphone and, consequently, access to digital banking. Throughout the country, a greater space for these technological advances can be noticed. The future of financial services in Peru will no longer be limited to the walls of a bank. On the other hand, it will expand to digital channels through its different regions.
At Guinea Mobile, we care about being at the forefront of the latest technological advances. If you are searching to improve communication in your company, get in touch with us, and we will help you.