The importance of CICO

Can’t overstress the importance of the deregulation of Cash In and Cash Out (CICO) for Financial inclusion. Ayodo’s own merchant centric mobile money service YodoPay is reliant upon the CICO services being provided by small merchants worldwide. The Consultative Group to assist the poor (CGAP) fully recognizes the importance of CICO in reaching the poor who are often marginally or totally unbanked. Still 70% of the adult population in emerging SE Asia (excluding China) remain unbanked.

Eight hundred million Indians remain marginally banked transacting primarily in cash or fiat currency ( INR) so why not leverage the 15 million small merchant there with established cash handling practices to allow CICO and penetrate into this market to finally and fully enhance financial inclusion. As much as the Governments of developing countries may like to emulate the developed world, univeral western style banking may not be a preferred model for poor people who are eking out a living on a few dollars a day income. Pragmatically speaking these people have no real need for most banking services and with the unintended costs and problems of Identity theft perhaps the developed world should be reconsidering our over reliance on a credit/debit for payments and search for better solutions founded on blockchain solutions. The real poor require minimal financial services, mostly for money transfers and micro loans, two area banks have proven incapable of providing in a secure affordable fashsion. Poor people and even some weathly people trust and prefer to transact in cash. CGAP has been trying to enhance financial inclusion for more than a decade, and the experience has taught them the necessity of deregulating CICO. Here are a few links to articles and posts by CGAP staff on CICO.

The importance of CICO by CGAP’s financial sector leads.

https://www.cgap.org/sites/default/files/publications/slidedeck/2018_05-Slidedeck-Proximity-Matters-Five-Case-Studies-in-Closing-the-CICO-Gap.pdf

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