With mobile money, Haitians are able to complete transactions like this one wirelessly. Photo: Karl Grobl for NetAid.

This article was republished by The Christian Science Monitor.

In Haiti, cash is escaping from wallets and savings accounts are breaking free from brick-and-mortar banks.

Two years after 2010’s devastating earthquake, mobile money has taken off in the island nation. While the country has seen setbacks in many areas and continues to struggle, one bright spot is the transformation of the country’s traditional banking sector. Physical banks were wiped away by the quake and subsequent hurricane, and a mobile banking network that uses cell phones has grown up in their place.

Toting your money around on a cell phone might sound scary, but for many Haitians it’s more secure than carrying around a wallet, which isn’t protected by a PIN. The handy infographic to the right shows how a mobile money transaction works.

How a mobile wallet transaction takes place in Haiti. Infographic courtesy Mercy Corps.

In the months following the quake, both Mercy Corps (our parent organization) and The Gates Foundation sponsored separate Haitian cell phone companies, Voilà and Digicel, to help mobile money take off, with the Gates Foundation offering monetary incentives for the first company to get a program off the ground and for continued improvements in order to get entrepreneurial engines revving.

For many Haitians, mobile money can open a door to personal choice. Mercy Corps has used mobile money to distribute food aid to families across Haiti and deliver payments from its cash-for-work programs. Instead of spending hours waiting in line for a cash payment or a food ration, Haitians receive a wireless money transfer on their phones once a month.

The technology holds promises for the future, too. Long-term, mobile money could be expanded so that it’s accessible to everyone for all of their personal purchases. Haitians could use mobile money to send remittances to family members in other parts of the country, according to AudienceScapes. And after visiting with Mercy Corps staff in Haiti in 2010, New York Times columnist Nicholas Kristof wrote about the way that mobile money is creating a way for the poor to save money like never before. Most banks won’t accept very small deposits, but now a mobile phone could double as a savings account. It could blow the microsavings sector wide open.

Mobile money could also help make Haitians healthier. Even before the earthquake hit, Haiti’s public health indicators were the worst in the Western hemisphere, according to the U.S. Department of State, and those problems were only compounded by the disaster. In Kenya, one of the first countries to adopt mobile money, customers can use it to pay - and save up for - health services. Expectant mothers use it to save for health care, and in rural communities Kenyans have used the service to pay for access to clean water, reports USAID. Looking forward, a mash-up of mobile health and mobile money technologies in Haiti could lead to new insurance plans and health voucher programs, according to Health Unbound.

With mobile money quickly gaining widespread use, the developing world is leaps ahead of the developed. Mobile money launched in Kenya in 2003, according to The National Archives, but Google Wallet’s similar service in the U.S. wasn’t released until September of last year and has yet to truly take off. Maybe it’s time for American company executives to start taking a few pointers from Haiti.

The use of technology in humanitarian aid planning is on the rise. Photo: Esther Gibbons (Flicker)

2011 is over, but the impact technology had on humanitarian aid planning last year could be just beginning to emerge.

Humanitarian issues demand immediate solutions. In 2011, a lot of solutions to crises placed heavy emphasis on technology. Here are three notable examples:

Disaster prone Bangladesh turned to GPS to provide early weather warnings to fishermen.

Airtel, a private mobile operator in Bangladesh will provide early weather warnings to fishermen using its global positioning system via cell phones in partnership with the Center for Global Change, the Campaign for Sustainable Rural Livelihoods and two international NGOs, according to IRIN.

More than half on Bangladesh’s population uses mobile phones. Early weather warnings could prove to be a life-saving tool. "75 percent of the country’s population lives in rural, disaster-prone areas, an ideal environment in which to exploit the potential of mobile phones to mitigate disasters," IRIN reported.

Technology has helped put Kibera on the map, literally.

Finding Kibera, a district of Nairobi, on a map before 2009 was not an easy task because it wasn’t on one. The location of schools, medical facilities, water points and other basic information was simply not available. As a result, The Map Kibera Project was created in order to provide this information. The goal: to train nine Kibera residents in using GPS devices to gather geographical information in a "citizen mapping" project.

Now this information is available on OpenStreetMap, a global map anyone can view and edit. Organizers plan to continue adding information on the map and eventually start mapping other communities.

Mobile phones have turned ordinary people into extraordinary philanthropists.

This past year, one of the worst famines in modern history struck the Horn of Africa. Humanitarian aid and donor government assistance poured in from all over the world. One campaign, "Kenyans for Kenya," set a goal to raise $5.28 million dollars in one month. Within 10 days, the goal was met and a bigger goal of $10.56 million set. By September 1, more than $7 million was collected, $1.6 million through private donations.
Contributions, most of them from Kenyan citizens and organizations, were made through a mobile phone money transfer service operated by telecom firm Safaricom. The money collected has been used to send money to affected areas through the Kenyan Red Cross Society, IRIN reports. This has been one of the most successful humanitarian fundraising campaigns Kenya has ever seen, and its efforts are ongoing.

These are only a few examples of how technology has positively impacted humanitarian responses to crises. Technology isn’t the answer to all the world’s problems, but it’s proving to be an effective tool.