Institute for Money, Technology & Financial Inclusion

This is the 2-page executive summary for the IMTFI Working Paper: The Impact of Pure Mobile Micro-financing on the Poor: Kenya's Musoni Experience.

Musoni (‘M’ for mobile and ‘Usoni’ for future) is a microfinance institution in Kenya that offers all its services exclusively through mobile technology. Most other MFIs have established brick and mortar operations and mobile money (MM) only complements their traditional ways of serving clients. Musoni is the first in the world to achieve this kind of cashless automation and has provided a paradigm shift in the way MFIs operate. This innovative approach eliminates some administrative costs and makes transactions more efficient for both consumers and the MFI. Musoni’s clients are poor workers, some of whom run small businesses. The clients sign up in groups and seek low value loans from the MFI. Musoni believes that customer loyalty increases when the frequency of client group meetings is reduced leaving customers with more time to themselves and for their businesses.