Do you know how people send money to Senegal from abroad using digital finance services? In Senegal, the evolution of online money is the financial account ownership, a standard indicator of financial inclusion; however, to continue expanding financial inclusion, it is important to ensure that all segments of the population profit from digital financial services (DFS). Senegal’s DFS market has changed dramatically in the last five years, according to the United Nations Capital Development Fund (UNCDF).
Adults with an active Digital Finance Service (DFS) account (defined as at least one recent transaction per month) increased from 13% in 2014 to 29% in 2019, while the number of active DFS agents grew from 54 to 192 per 100,000 adults. Digital Finance Service (DFS) agencies work with e-money service providers to send money to Senegal online via smartphones. These agents are the primary points of contact for the service and can conduct the entire suite of services provided by the mobile money product.
What Is The Financial Transaction Method For Senegalese and How Can Make It More Advance?
Senegal has a vast and varied financial environment. People rely on various formal and informal financial institutions, both digital and non-digital, for money transfer to Senegal and abroad. Family and friends and social networks are important for meeting financial needs by enabling borrowing for basic consumption and providing trustworthy advice. Although overall inclusion is low (15%), several factors are in place to encourage greater financial services, especially digital financial service, providers.
A mobile money operator, a bank, or a store or vending machine that provides over-the-counter services are all within 5 kilometers of two-thirds of the community. The majority of the population owns a cell phone, has used SMS messaging, and is familiar with mobile money. However, there are obstacles to address in terms of schooling, literacy, and familiarity with financial structures to shift the population from excluded to included.
How Is the Government Of Senegal Supporting Digital Payment System?
Senegal has made a commitment to priorities digital transformation as a driver of growth and development. The UNSGSA discussed the importance of digitization throughout its meetings to support increased financial inclusion and competitiveness. They also listened to reports on progress in digitizing recurring payment flows in the public and private sectors, including government-to-person, government-to-government, and person-to-person payments like online money transfer to Senegal from abroad.