LIVE FROM THE GSMA’S NFC & MOBILE MONEY SUMMIT, NEW YORK: Latin American economies are typically made up of wealthier banked consumers with access to smartphones and credit cards, and their poorer fellow citizens who operate in a cash economy, but the two groups are not as disconnected as they might appear, said Jeff Hindle (pictured, right) of Scotiabank International.

“You can optimise the system to a certain degree but the banked population transact with the unbanked. At end of the day, you can’t leave home without cash,” said Hindle, the manager of the bank’s product and business development functions for retail and small business customers.

“You have to expand the existing system, not create a parallel one,” he said, which offers an opportunity for mobile money.

Hindle also argued that financial institutions need to be direct in getting services into the market, and then be prepared for surprises for how consumers react. He gave the example of Haiti (strictly speaking a Caribbean country, not Latin American) where a Scotiabank scheme saw funds and deposits treble this year: “I’ve got news, nobody expected that.”

Other countries noted in the session were Peru and Mexico. The latter carries a risk of fragmentation despite the opportunity it represents, said speakers, with the likelihood of a shakeout among existing players.

There was also a discussion on remittances, both domestic and international, and when they will be integrated into mobile money services. “Generally, international remittance come last. They are harder to provide and have more demanding regulation,” said Mung Ki Woo, executive vice president, mobile and industry alliances, MasterCard.