For interoperability to work, technology must do more than move transactions from Point A to Point B. It must be optimized to ensure security, encourage use, promote innovation and handle the inevitable time when something goes wrong.
Interoperability makes it possible for customers to transact freely without compatibility issues, but its benefits don't end there. Here are three ways interoperability can advance financial inclusion.
In Kenya, where nearly everyone knows about mobile money and a majority live within walking distance of an agent, why do nearly 2 in 10 adults lack access to formal financial services? And what can be done to reach them?
Bank accounts today once again outnumber mobile money accounts in Kenya -- by over 30 percent. Innovations like PesaLink have helped banks achieve this growth, showing that banks can thrive in the face of mobile money.
For most practitioners, interoperability brings to mind the technical tools that allow modern payment systems to work together. CGAP’s new global scan on digital financial services interoperability makes it clear that exchanging payments is about much more than technical connections.