Mobile Banking Conference Southern Africa 130312

38
How to get the informal sector to switch from cash to mobile money? Yaron Assabi [email protected] yaronassabi

description

Mobile Banking Southern Africa Conference

Transcript of Mobile Banking Conference Southern Africa 130312

Page 1: Mobile Banking Conference Southern Africa  130312

How to get the informal sector to switch from cash to mobile money?

Yaron  Assabi  [email protected]    

yaronassabi  

Page 2: Mobile Banking Conference Southern Africa  130312

Ø  Why consumers want mobile service at lower fees and with personal benefits based on usage

Ø  Cash is not king, it is dangerous - bad for the environment and expensive

Ø  Mobile: the ideal platform for micro-payments

Ø  Relevant technology can change behaviour

Ø  Small change to make a big difference

   

Hidden  Agenda  

Page 3: Mobile Banking Conference Southern Africa  130312

“ A world where everyone, no matter who they are or

where they live, can gain easy ‘mobile’ access to affordable basic financial services to improve their lives and raise their standard of living.’

Our Vision

Page 4: Mobile Banking Conference Southern Africa  130312

Critical Success Factors Ø  The informal business sector is primarily cash based across Africa

Ø  Mobile Money integration and mCommerce is not easy for a merchant and therefore should be simplified via software that gives access to multiple payment options or CSP ( Commerce Service Provider) $5&11#-$F)&1$"1)#-($&-#$."*34$&3.$()"/?.$1)&1$0)&34#)'8$F)'$3"1G

Ø  On Device App that is cross platform Ø  Security , Device Management and remote wiping Ø  Vertically focused app for SME providing the same service as a standard POS but on the mobile device with smart SaaS based features & reporting Ø  Usability & Quality Management

Page 5: Mobile Banking Conference Southern Africa  130312

ü  Have you ever bought a Nando’s meal in Nigeria ? ü  Africa is primarily a cash based economy due to vast dispersed geography it is

not economical to have a large branch network ( e.g. 2/3 of Namibia is desert) ü  The mattress is still a major safe deposit box – it is expensive and dangerous ü  Violent crime statistics will drop once we migrate to electronic money in Africa

and it should therefore be a high priority.

ü  Electronic money will have a positive impact on our environment. ( eliminate carbon emission on travel , printing of money etc..)

ü  There was a time when Banks stopped reporting incidents as there were too many -they were worried about consumer confidence – if Banks could spend less on security, costs will drop and they could focus on service

Cash is NOT King it is Dangerous and Expensive

Page 6: Mobile Banking Conference Southern Africa  130312

ü  Mobile Networks cover most populated areas and therefore are ideal for enabling mobile commerce and payments

ü  Pre Paid wallet is equivalent to a current account ü  It is easier to top up airtime remotely and keep currency electronically vs.

cash. ü  A Mobile network is designed for micro billing ( per second billing )

whereas credit cards R15 minimum transactions. ü  The world is moving towards pay per use –” 20p to use the toilet at

Paddington station “ – what happens when you do not have change?

Mobile is the ideal platform for micropayments

Page 7: Mobile Banking Conference Southern Africa  130312

Unbanked Opportunity

Page 8: Mobile Banking Conference Southern Africa  130312

Mobile is the ideal platform for micropayments

ü  Mobile Networks cover most populated areas and therefore are ideal for enabling mobile commerce and payments

ü  Pre Paid wallet is equivalent to a current account- very little

credit card penetration in Africa which is an opportunity for the MNO ‘s to take the lead in Mobile App Eco System

ü  It is easier to top up airtime remotely and keep currency

electronically vs. cash. ü  A Mobile network is designed for micro billing ( per second

billing ) whereas credit cards R15 minimum transactions. Most Apps

ü  The world is moving towards pay per use –” 20p to use the

toilet at Paddington station “ – what happens when you do not have change?

Page 9: Mobile Banking Conference Southern Africa  130312

9 | Touchatag |August 2009

Pay by Phone and control your eco foot print

Page 10: Mobile Banking Conference Southern Africa  130312

 

 

Mobile Development Partnerships

Page 11: Mobile Banking Conference Southern Africa  130312

How Mobile is changing shopping ?

Page 12: Mobile Banking Conference Southern Africa  130312

ü  The banking and credit card industries have noticed that it takes an average of 26 hours for a user to (notice and) report a lost wallet. Yet if you lose a mobile phone, the average time to report it is 68 minutes.

Prefer Mobile Phone over Wallet?

Page 13: Mobile Banking Conference Southern Africa  130312

Market Overview- $151 billion this year

Page 14: Mobile Banking Conference Southern Africa  130312

“Give people more control over their banking and you’ll win their loyalty. That’s because mobile is not a channel so much as a way consumers live their lives and consequently, the way banks have to conduct their business.”

Douglas Brown Senior VP Mobile Product Development

Bank of America

Mobile Lifestyle

Page 15: Mobile Banking Conference Southern Africa  130312

Applications will determine winners

Page 16: Mobile Banking Conference Southern Africa  130312

à Accept credit, debit, mobile money & stored-value cards in the field à Software only solution – no card-swipe hardware required à Card information entered onto SmartFORM™ on the handset à Immediate authorization à Mobile receipt printing can be made available (Bluetooth® printer

required) à Compliant with highest levels of industry security standards à Eliminate cash from the system

Increase Cash Flow From

Shortened Receivables

Mobile Payment Processing

Page 17: Mobile Banking Conference Southern Africa  130312

à  Interface with SARS efilling à  KM per L Report

• Etc. à  “Petrol card like “ integration à  Electronic driver logs à  Provide valuable reporting

Reduce Manual Reporting Costs

Fuel /Tax Calculation & Reporting

Page 18: Mobile Banking Conference Southern Africa  130312

Reduce Expenses à  Complete more transactions per day à  Complete transactions quicker à  Reduce mPos costs à  Ensure accuracy à  Eliminate paper-based reporting

Increase Cash Flow à  Increase market share, customer service & revenue à  Optimize inventory levels à  Increase revenue per merchant à  Faster & more accurate invoicing

Improve Safety/Security à  More affordable à  Faster response times

Transform our product innovation into your market leadership!

Customer Benefits

Page 19: Mobile Banking Conference Southern Africa  130312

Ø  Security is always a consideration when implementing a POS solution. Ø  The primary concerns are employee access to registers, adherence to security

standards, & securing the saved transaction record in the database through compliance with data protection standards.

Ø  When migrating to a mobile POS environment, the concerns are the same. Ø  The mobile device will operate within a mobile data network so capturing

customer payment data and transmitting using 3G network is inherently risky. Ø  The Payment Card Industry Data Security Standards (PCI-DSS) have specific

provisions and additional processes that must be implemented in order for a retailer to be allowed to mobile payments .

Ø  The connection should use strong encryption through HTTPS and should adhere to the PCI-DSS standard protocols to manage the transaction. Ø  Merchant / Employee authentication to the mobile device should be robust and

tracked through to the transaction level. Ø  Once the transaction is complete or cancelled, the system should delete the

transaction record from memory only available on SaaS environment for recall.

Security

Page 20: Mobile Banking Conference Southern Africa  130312

Mobile  Marke0

ng  

Mobile  Customer  Service  

Know  your  customers  Know  their  problems  

Proac<ve  help  where  needed  

Know  your  customers  Know  their  preferences  Give  them  more  of  what  they  want  

Real-­‐<me  knowledge  Targeted  adver<sing  

Enhanced  brand  loyalty  

Business Value

Page 21: Mobile Banking Conference Southern Africa  130312

They don’t leave because there’s a compelling reason to leave. They leave because there’s no compelling reason to stay

Why customers leave?

Page 22: Mobile Banking Conference Southern Africa  130312

Mobile Loyalty and Rewards

Page 23: Mobile Banking Conference Southern Africa  130312

23 | Touchatag |August 2009

Use phone camera to scan image and see discounts

Page 24: Mobile Banking Conference Southern Africa  130312

24

“Optimize Up” to the capabilities of each device Take advantage of latest device capabilities Graceful fall-back for older devices Use device knowledge within applications e.g. don't offer video if the phone doesn't support it

Adopt a “Write Once, Deliver Anywhere” strategy Standards based integration – W3C DIAL (XDIME) Re-use branding templates across multiple systems Automated support for new devices

Reach the maximum number of users Regardless of their choice of device Browsing, Messaging, Clients, USSD… Mobiles, PDA’s, PC, Games Consoles…

With high quality user experience

With minimum effort

Deliver web applications to any device

Cross Platform –Common API’s

Page 25: Mobile Banking Conference Southern Africa  130312

Mobile Learning –Training of Merchants

Page 26: Mobile Banking Conference Southern Africa  130312

ü  DSG Secured exclusive rights for Africa , Middle East & Indian Ocean

ü  US-based company with global presence that provides a full range of software testing services to customers of all sizes

ü  Provides real-world, “in-the-wild” testing services for web, mobile, and desktop apps

ü  Utilizes a global community of professional software testers

ü  Not a traditional QA outsourcing or off-shoring company

ü  Act as extension & complement to in-house QA activities

Background

Page 27: Mobile Banking Conference Southern Africa  130312

27

Some customers

Page 28: Mobile Banking Conference Southern Africa  130312

Testing types – Mobile, Web, Desktop ü  Exploratory ü  Functional ü  Usability ü  Hybrid-load testing ü  Localization and internationalization Real-world coverage – broad matrix ü  OS/Browser/3rd Party Apps ü  Location-based ü  Language-based ü  Handset maker, model and wireless carrier (for mobile) ü  “In-the-wild” testing vs. “In-the-lab" testing Consumer & SMB-facing applications ü  Web, Desktop and Mobile

Crowd -sourcing usability

Page 29: Mobile Banking Conference Southern Africa  130312

Have you tested your app?

Page 30: Mobile Banking Conference Southern Africa  130312

It  is  all  about  EXPERIENCE  

Page 31: Mobile Banking Conference Southern Africa  130312
Page 32: Mobile Banking Conference Southern Africa  130312

In traditional two pocket thinking, the money you invest flows back to you.

Giving thru philanthropy flows away, with no return.

philanthropy

investment

Source : Good Capital

From donor funded business models

Page 33: Mobile Banking Conference Southern Africa  130312

When good and capital come together, the money flows back to you after its made an impact in the world. It’s recyclable giving; more change for your buck.

Source : Good Capital

Self sustaining business models-recyclable giving

Page 34: Mobile Banking Conference Southern Africa  130312

Rather than wondering "What your money is doing" in your name, you have the confidence of knowing --by creating accountability for good impact, and accountability for financial performance""""""

Source : Good Capital

Electronic channels provide full audit trail of ROI

Page 35: Mobile Banking Conference Southern Africa  130312

Incentives were a strong motive for younger people to sign up for mobile banking services, which allow them to keep track of checking and savings accounts on their cell phones. Of respondents to a survey, 40 percent of people 18 to 45 said incentives tipped the scales when it came to picking mobile banking.

SOURCE: AURIEMMA GROUP

Incentives help drive adoption

Page 36: Mobile Banking Conference Southern Africa  130312

Old style social capital In the old style double bottom line view, the social value hides behind a spreadsheet.

The new wave The total blended value becomes clear. as we acknowledge our desire for impact

Blended Value High Impact –10 % of PBT is re-invested back into the community

Source : Good Capital

Page 37: Mobile Banking Conference Southern Africa  130312

ü  Select your community based NPO and all transactions on our platform contribute towards your charity via loyalty points .

ü  Round up your transaction – small change to make a big difference ü  Everytime you contribute we provide you with loyalty points and

account for how much good you have done for the community through the platform for personal reward and recognition and tax purposes

ü  M-commerce through digitalmall.com , mticketing, prepaid airtime sales

ü  Micro franchising – creating job opportunities- we will stimulate buisness ideas and support entrepenuers in m-government , m-health , m-learning, microfinance ( Safaricom has over 9,000 Mpesa dealers) .

ü  Entrepreneurship development program ü  Mobile application development partner program ü  Microbilling for mobile content and applications which is key to

success of the eco-system

Small change will make a BIG difference

Page 38: Mobile Banking Conference Southern Africa  130312