What different purposes do the game network operators in Colombia fulfill? What are some suggestions from the authors to address some of the forms of financial exclusion that low-income urban residents in Colombia experience?
Colombian game network kiosks allow the informal workers of the country to send money and make payments with ease. Many of these informal workers are working with small amounts of money that traditional financial services would not deal with but game networks will. Some of the informal workers originate form rural areas of the country but were forced to move to urban areas. If they workers have or make more money than they currently need they can use the game networks to send money to their family members. These kiosks also allow the informal workers to buy small amounts of electricity or cell phone minutes with ease. The authors put forward suggestions that make informal workers be able to access formal financial services. They want to have informal workers be seen as legitimate members of the society since they are seen as out of place. Many of the informal workers have come to urban areas that are unfamiliar to them because of issues in the areas they are from. If they are seen as part of the community then financial services would become more available to them. An advantage that these informal workers see in informal financial services is the simplicity. If traditional financial services catered more toward the informal workers desire for simplicity then they would most likely use it. They also suggest that financial services should be more open to the low amount of money that these workers are using in their transactions. If the traditional financial services was no longer just for the upper classes then the informal workers would be more likely to use it.
The game networks in Columbia allow informal workers to remain in control of their payments and resources, which is preferable over banks and other similar institutions due to the unstable nature of the workers' salary. These workers are able to pay for specific amounts of resources like cell phone minutes, power, and internet usage. They do this as making long-term commitments in terms of payment often lead to more financial trouble. Even with the urging of Columbians to at least open a bank account so that they can officially participate in the system, known as bancarization, has failed to address the problems faced by the poor. Instead, workers also rely on these game networks to send and receive money from family members. This allows for support even when there is physical distance between members of a family and this is very important since most people rely on members of their family to support the group as a whole.
In terms of suggestions from the authors to address financial exclusion, they have a few. Going off of the concept of access, making use of the already existing kiosks would allow people more places to make transactions and cut down on costs. Making the costs of services transparent would also help with access by making it easier and more trustworthy in the eyes of users. Keeping track of a transaction history instead of a credit history to establish creditworthiness would make it easier for informal workers to get a good background in transactions. A couple others include offering services on shorter cycles so workers can use small loans instead of having to take out larger ones, and legitimizing the workers' contribution to the community.
Due to slow processing speeds, high service fees and a change in family dynamics and structures, the Columbian game network allows informal workers access to services and commodities, that were previously out of their financial capabilities. For these informal workers, the use of a bank savings account is impractical, because of the fact that the family structure has changed from a patriarchy to a democratically led group of people who all weigh in on financial issues, and the use of such banking services would add additional financial obstacles for them to face. The game network has allowed the poor to quickly move money between one and other with an easy money transferring system that works faster and more cost effectively than the traditional financial system backed by the Columbian government. These kiosks also offer services like energy, internet access and phone minutes and texting cards in much smaller and more affordable quantities. This extreme form of "pay for what you need" kind of system has improved lower working class individuals and families ability to avoid spending a larger portion of their money on expensive and long term contracted services with fee, as well as allowing them more flexibility to save money over time for things like living expenses (such as rent and food). In the reading, the author highlights several key changes the financial and banking system would need to change in order to become more inclusive for those of a lower socio-economic class. One such change would be that they need to address how people access their savings account with changing family structures. These poorer family are not able to live off of a single person income and often require the whole family to contribute a collective monetary fund. For the system to become more inclusive banks would need to lower not only their service fee dramatically, but also improve the way how a family would more readily access their saved money.
The Columbian game network makes it easier for informal workers to get resources from more formalized markets. Online banking and formal methods of gaming were set in place to regulate the people, but as phones are used primarily for important calls and are often pay-by-the minute, it becomes unavailable for the lower class. The formalized system also adds strain to workers who have unsteady payments and may be overlooked by a bank or taken by the fees that come with having an account. Because the informal system relies on fractioned money - money that is on one's person - they tend to work for the lifestyle of the people. There are many other functions of these informal kiosks - they can take out loans, allow people to bet on the lotto (which is also informally run), pay utilities, and reload services like energy and cell phone minutes. The suggestions made would make a the formal system more lucrative for the lower class to participate in the system. One of the main ideas was to remove the hidden fees that often drive people away. Because family structures have moved to be units for multiple incomes rather that based solely on a patriarch's income, there is no room for them to have entire paychecks given in fees to the banks. Removing the extra bells and whistles that con people out of their money would allow for them to join the system. The other suggestion that stuck out to me was the idea of creating value in transaction history rather than credit history. This would allow people with low economic standing to gather important fiscal information for large purchases without putting them into debt.
The function of Game Networks in the social structure of Columbia is to provide low level, informal 'banking' services to the poor and lower classes, as well as functioning as a place to play betting games and purchase cell-phone minutes and other small sundries that are useful for those who find that long-term goal setting or savings is less suitable than short-term, higher long term cost purchases. Essentially paying vending machine prices on what is usually provided via contract or account at a telecom company or financial institution, for vending machine quantities of the same products- Wire transfers, cell phone minutes, and other odds and ends. The authors point out that the Colombian government, and even private institutions in Colombia have made earnest attempts, at least in the interest of tax collection, to get the poor and informal workers of the country onto banking programs, and other forms of welfare that would materially support them in ways that the informal economy fails to do, such as healthcare and other forms of benefits. The issue that this poses is that they are often hard to navigate for the poor for a variety of factors, including insecure housing and the high rate of cell phone theft and number change. Without a permanent number, and without a permanent address, one could easily be lost by the system. The authors suggest, correctly, that instead of creating new services for these workers to learn how to access and navigate, the systems that they already understand and utilize should be augmented to better help them. The game network should be established as a place where people can take out legitimate lines of low-volume credit, or get a cell phone contract, etc. This is an important and very good idea, as a fantastic plan to save the urban poor and bring thousands of informal workers into the legitimate side of the economy is all well and good, but as the authors already illustrated: If it is inconvenient or too convoluted, or depends on continuity of residence or contact, It will ultimately elude use by those for who it is meant. I think it would be interesting to consider the implications of this same issue in the United States- While our economy is very different from that of Colombia, we do have a widespread issue of the transient poor. One of the largest issues for poor people is establishing a permanent residence (or at least, a mailing address), which is the first step to acquiring employment, welfare, and other entitlements, and ultimately recovering from homelessness. Could a similar strategy of expanding the ways in which these programs are accessed improve our own social systems here in the US?
Colombian game networks allow the informal workers to send money and make payments. These informal workers usually come from rural areas in the country, ultimately many were forced to move to urban areas. The game networks have allowable impoverished individuals to swiftly move finance amongst one another with an informal financial transferring system that is faster and financially responsible than traditional financial systems like banks and loan departments which at many times are financed by the Colombian government. If the traditional financial programs were not only accessible to the upper classes, then it would promote more integration of less wealthy within the country to use those traditional methods. Until that happens it seems as if the Colombian game networks are the most attractive and financially responsible for the lower-class sectors of Colombia.
Colombian game network kiosks allow the informal workers of the country to send money and make payments with ease. Many of these informal workers are working with small amounts of money that traditional financial services would not deal with but game networks will. Some of the informal workers originate form rural areas of the country but were forced to move to urban areas. If they workers have or make more money than they currently need they can use the game networks to send money to their family members. These kiosks also allow the informal workers to buy small amounts of electricity or cell phone minutes with ease. The authors put forward suggestions that make informal workers be able to access formal financial services. They want to have informal workers be seen as legitimate members of the society since they are seen as out of place. Many of the informal workers have come to urban areas that are unfamiliar to them because of issues in the areas they are from. If they are seen as part of the community then financial services would become more available to them. An advantage that these informal workers see in informal financial services is the simplicity. If traditional financial services catered more toward the informal workers desire for simplicity then they would most likely use it. They also suggest that financial services should be more open to the low amount of money that these workers are using in their transactions. If the traditional financial services was no longer just for the upper classes then the informal workers would be more likely to use it.
ReplyDeleteThe game networks in Columbia allow informal workers to remain in control of their payments and resources, which is preferable over banks and other similar institutions due to the unstable nature of the workers' salary. These workers are able to pay for specific amounts of resources like cell phone minutes, power, and internet usage. They do this as making long-term commitments in terms of payment often lead to more financial trouble. Even with the urging of Columbians to at least open a bank account so that they can officially participate in the system, known as bancarization, has failed to address the problems faced by the poor. Instead, workers also rely on these game networks to send and receive money from family members. This allows for support even when there is physical distance between members of a family and this is very important since most people rely on members of their family to support the group as a whole.
ReplyDeleteIn terms of suggestions from the authors to address financial exclusion, they have a few. Going off of the concept of access, making use of the already existing kiosks would allow people more places to make transactions and cut down on costs. Making the costs of services transparent would also help with access by making it easier and more trustworthy in the eyes of users. Keeping track of a transaction history instead of a credit history to establish creditworthiness would make it easier for informal workers to get a good background in transactions. A couple others include offering services on shorter cycles so workers can use small loans instead of having to take out larger ones, and legitimizing the workers' contribution to the community.
Due to slow processing speeds, high service fees and a change in family dynamics and structures, the Columbian game network allows informal workers access to services and commodities, that were previously out of their financial capabilities. For these informal workers, the use of a bank savings account is impractical, because of the fact that the family structure has changed from a patriarchy to a democratically led group of people who all weigh in on financial issues, and the use of such banking services would add additional financial obstacles for them to face. The game network has allowed the poor to quickly move money between one and other with an easy money transferring system that works faster and more cost effectively than the traditional financial system backed by the Columbian government. These kiosks also offer services like energy, internet access and phone minutes and texting cards in much smaller and more affordable quantities. This extreme form of "pay for what you need" kind of system has improved lower working class individuals and families ability to avoid spending a larger portion of their money on expensive and long term contracted services with fee, as well as allowing them more flexibility to save money over time for things like living expenses (such as rent and food). In the reading, the author highlights several key changes the financial and banking system would need to change in order to become more inclusive for those of a lower socio-economic class. One such change would be that they need to address how people access their savings account with changing family structures. These poorer family are not able to live off of a single person income and often require the whole family to contribute a collective monetary fund. For the system to become more inclusive banks would need to lower not only their service fee dramatically, but also improve the way how a family would more readily access their saved money.
ReplyDeleteThe Columbian game network makes it easier for informal workers to get resources from more formalized markets. Online banking and formal methods of gaming were set in place to regulate the people, but as phones are used primarily for important calls and are often pay-by-the minute, it becomes unavailable for the lower class. The formalized system also adds strain to workers who have unsteady payments and may be overlooked by a bank or taken by the fees that come with having an account. Because the informal system relies on fractioned money - money that is on one's person - they tend to work for the lifestyle of the people. There are many other functions of these informal kiosks - they can take out loans, allow people to bet on the lotto (which is also informally run), pay utilities, and reload services like energy and cell phone minutes.
ReplyDeleteThe suggestions made would make a the formal system more lucrative for the lower class to participate in the system. One of the main ideas was to remove the hidden fees that often drive people away. Because family structures have moved to be units for multiple incomes rather that based solely on a patriarch's income, there is no room for them to have entire paychecks given in fees to the banks. Removing the extra bells and whistles that con people out of their money would allow for them to join the system. The other suggestion that stuck out to me was the idea of creating value in transaction history rather than credit history. This would allow people with low economic standing to gather important fiscal information for large purchases without putting them into debt.
The function of Game Networks in the social structure of Columbia is to provide low level, informal 'banking' services to the poor and lower classes, as well as functioning as a place to play betting games and purchase cell-phone minutes and other small sundries that are useful for those who find that long-term goal setting or savings is less suitable than short-term, higher long term cost purchases. Essentially paying vending machine prices on what is usually provided via contract or account at a telecom company or financial institution, for vending machine quantities of the same products- Wire transfers, cell phone minutes, and other odds and ends.
ReplyDeleteThe authors point out that the Colombian government, and even private institutions in Colombia have made earnest attempts, at least in the interest of tax collection, to get the poor and informal workers of the country onto banking programs, and other forms of welfare that would materially support them in ways that the informal economy fails to do, such as healthcare and other forms of benefits. The issue that this poses is that they are often hard to navigate for the poor for a variety of factors, including insecure housing and the high rate of cell phone theft and number change. Without a permanent number, and without a permanent address, one could easily be lost by the system.
The authors suggest, correctly, that instead of creating new services for these workers to learn how to access and navigate, the systems that they already understand and utilize should be augmented to better help them. The game network should be established as a place where people can take out legitimate lines of low-volume credit, or get a cell phone contract, etc. This is an important and very good idea, as a fantastic plan to save the urban poor and bring thousands of informal workers into the legitimate side of the economy is all well and good, but as the authors already illustrated: If it is inconvenient or too convoluted, or depends on continuity of residence or contact, It will ultimately elude use by those for who it is meant.
I think it would be interesting to consider the implications of this same issue in the United States- While our economy is very different from that of Colombia, we do have a widespread issue of the transient poor. One of the largest issues for poor people is establishing a permanent residence (or at least, a mailing address), which is the first step to acquiring employment, welfare, and other entitlements, and ultimately recovering from homelessness. Could a similar strategy of expanding the ways in which these programs are accessed improve our own social systems here in the US?
Colombian game networks allow the informal workers to send money and make payments. These informal workers usually come from rural areas in the country, ultimately many were forced to move to urban areas. The game networks have allowable impoverished individuals to swiftly move finance amongst one another with an informal financial transferring system that is faster and financially responsible than traditional financial systems like banks and loan departments which at many times are financed by the Colombian government. If the traditional financial programs were not only accessible to the upper classes, then it would promote more integration of less wealthy within the country to use those traditional methods. Until that happens it seems as if the Colombian game networks are the most attractive and financially responsible for the lower-class sectors of Colombia.
ReplyDelete