Step inside the laptop bank

In the world of social innovation, many of the smartest ideas focus on “market inefficiencies” and, in particular, ways of reducing them. As increasing numbers of mobile operators implement airtime transfer systems and mobile money functionality on their networks – particularly in developing countries – opportunities also increase for locally-run microfinance institutions and their customers at the bottom of the pyramid.

In the spirit of social innovation, Ben Lyon recognised the opportunity early. The result? FrontlineSMS:Credit – a first in laptop banking – announced last week at Africa Gathering in London.

FrontlineSMS:Credit landscape

The concept is simple:

FrontlineSMS:Credit aims to make every formal financial service available to the entrepreneurial poor in 160 characters or less. By meshing the functionality of FrontlineSMS with local mobile payment systems, implementing institutions will be able to provide a full range of customizable services, from savings and credit to insurance and payroll

The FrontlineSMS:Credit system is in essence a convergence of SMS-aggregating software and mobile commerce systems, which together provide an efficient and accessible platform for microfinance institutions (MFIs) to deliver and track loans via Short Message Service (SMS). Since FrontlineSMS:Credit utilises the widely available GSM wireless telephone network, implementing MFIs need neither an Internet connection nor a permanent office to conduct business. Not only that, MFIs will be able to make use of alternative power sources such as solar panels, allowing them to operate ‘off the grid’. This could provide a comparative advantage for those working in rural and underserved areas.

FrontlineSMS:Credit Uses

Based on the successful FrontlineSMS:Medic model, FrontlineSMS:Credit is a new venture, and Ben is currently building his team. He has a range of vacancies for anyone interested in helping develop the concept. A number of large microfinance-based institutions, and major international development agencies, have already expressed strong interest in being part of his “democratising finance” movement. Further details of the project, and current vacancies, are available on the project website at http://credit.frontlinesms.com

Congratulations Ben!

(You can read an earlier article on CreditSMS (now FrontlineSMS:Credit) on  PC World here)

Keeping up the heat on climate change

As part of this years International Day of Climate Action on October 24th, 350.org – with support from Tactical Technology Collective – are planning a new and innovative text messaging campaign designed to mobilise citizens around the world

“Project MOBiLIZE” will use decentralised, country-specific FrontlineSMS servers to deliver targeted messaging blasts to 350.org supporters in over twenty countries. The project will also collect SMS reports after the October 24th main event and deliver them to world leaders via Twitter, web and projection at the UN Climate Talks due to take place in Copenhagen in December.

"Project MOBiLIZE"

This is how it works. To start things off, the 350.org central server sends out an SMS to each of the country nodes, taking into account timing, language and message. Cost is minimal – just 20 international messages, one per node. Once the message is received, the country nodes automatically blast it out to lists of in-country mobile numbers, sourced from 350.org and local partner organisations. Costs are approximately 5 cents per SMS. Cascading SMS this way reduces costs considerably, and allows better local control.

Country nodes can also collect new mobile numbers through the FrontlineSMS servers, using SMS keywords and by publicising country-specific phone numbers on the web and at events.

This is the first time FrontlineSMS has been used to ‘cascade’ messages to and from the local level through a chain of servers. It could also be a first for any grassroots global SMS campaign, and if it works could present an exciting new model for others to follow. Not only is the system cheaper to run but it presents the potential for considerably wider reach, and thanks to some neat work by Bobby – the brains behind it – the pre-configured software can be quickly adopted in any country.

If you are interested in taking part in this ground-breaking campaign, either as an in-country node or in any other capacity, post a comment here, check out Bobby’s post on the FrontlineSMS Community pages

NEWS UPDATE

The 350.org website has a post about the project
Tactical Tech also have a post here

ACCESS POINTS

New numbers are being added all the time. Here are the various local access points as at 12th October:

USA – 30644
Australia – 0411694094
Maldives – 9900350
Macedonia – 077594209
Philippines – 09088770350
Hong Kong – 85262757489
Panama – Coming Soon!
New Zealand – 0226070672
Israel Coming – Soon!
Malaysia – 0163050973
Cambodia – 081666120
Sweden – 0733185314
Germany – Coming Soon!
India – Coming Soon!
Lebanon – Coming Soon!