Mobile Banking for Rural Africa

PAN AFRICAN BANK

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Key Decision Makers (That’s You!)• Board of Directors – Governance & Oversight

• Chief Executive Officer

• Executive Management – Steering Committee

– Chief Finance Officer

– Chief Marketing Officer

– Chief Information Officer

– Program Coordinator 1

Overview (What we’re going to tell you)

• Project Updates / Phase Review• New Corporate Social Responsibility (CSR) Efforts• Partnership Updates• Social Impact Statistics• Why should you invest in this project?• What are we asking for?

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Team

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Garry Johnson- Pursuing an M.S. in Entrepreneurship & Design

(Class of 2018)

George Munyua- CCNP, CCSE, MCSE- Former IT Infrastructure Architect at Equitel- BSc Entrepreneurship & Technology Innovation

(Class of 2019), University of Delaware

Opportunity & The Problem: Opportunity Gap

Opportunity:

- Recent success of M-Pesa- 3 and a half years after launch, over 70% of

households in Kenya and more importantly over 50% of the poor, unbanked and rural populations use the service.

Opportunity Gap:

- Low Financial Inclusion - 90% transactions cash - Under the mattress savings

VOC Plan

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The Voice of the Customer (VOC)

• Ethnographic Research

• Contextual Inquiry

• One-on-one or small-group interviews 6

Ethnographic Research

• Social Context- life events impact families- Rapid growth in youth

population

• Socioeconomic environment

- Poverty - low income households- financial literacy

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Contextual Inquiry

• Developing Customer Perspectives through One-on-One Interviews

- Lack of trust & confidence- Small savings- Credit collateral- Cash transactions- Marginalized

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Small Group Interviews

• Small Medium Enterprises (SME)

- Lack of capital- Cash transactions

• Rural Community Programs- Women Self Help- Youth Entrepreneurship- Donors & Charities 9

Customer Outcomes• Convenience

• Affordability

• Accessibility

• Microfinance tailored services: Small Loans, Savings, Insurance, Payments

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Data Evaluation

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Customer / Market

- IFC $100Bn Opportunity- 68% mobile money users- Globally less than 6%

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McKinsey - 80% Unbanked

Competitive LandscapeM-Pesa is currently available

in: 1) Kenya

2) Tanzania3) Egypt

4) Afghanistan5) India

6) South Africa7) Eastern Europe

CompetitorsPesaLink

- focused on high value money transfers

Equitel- 15% of the market w/ 1.1 billion

in transfers

*Currently, M-Pesa controls 85% of person-to-person money transfer valued at over $7 billion. 13

Business Model

• High volume, Low transaction charges

• Access to credit facilities - loans, credit scoring

• Bill Payments & Purchases - groceries, transport etc.

• Payment Remittance & Savings - social payments, wages

• Financial Products - budgeting, investments

• Digitization: Mobile wallet, Digital currency

Business Ambitions Customer Outcome

Pan Africa country expansion

Growth of retail and SME penetration

Low-cost business model1

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Lean Canvas

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Financials

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Costs- fixed- variable

- customer acquisition / optimization- cloud computing / database management

Revenue - accounts created- transaction charges- Interest on Loans

M-Pesa

Portfolio

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Bank Online

1. 2. 3. 4. 5.

New to our portfolio, fits seamlessly with our current offerings!

Project Overview

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Operational by Q4 2018

Needs:

1) Acquire Banking License2) $5 Million3) Project Development Team

a) Developersb) Project Managersc) Business Analysts

Phase 1 - Key Achievements

• First Telco in Africa to acquire a banking license!• Mobile Banking Digital Platform:

- Mobile Wallet: Micro Savings- Micro Credit with credit scoring- Bill Payments: Water/Electricity- Payment Remittance

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CSR Initiatives

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Transforming lives & livelihoods:

• Financial Literacy Program• Donor Charity Partnership• Innovation & Entrepreneurship

- Women Micro-entrepreneurs

- Youth Innovation hub- Diamond Challenge

CSR continued...

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Partnership w/ Samsung - Providing low-cost phones to increase access to

financial inclusion

Phase 1 - Key Achievements

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Phase 2 - Future projection

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Digital Financial Services Product Portfolio:

• Micro Investing• Micro Insurance

- Life, Health, Property etc

• Digital Learning Content - Financial literacy- Healthcare

Financial Breakdown & Timeline

Investment Summary Budget

• $1.25M - investment & insurance technology platforms• $.25M - CSR digital content ( Foundation Budget)

Total Project Cost = $1.5M

Project Timing

• 6 months to launch

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Phase 3 - Long Term Business Plan

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Payment Gateway for Cashless Ecosystem:

• Public Transport • Purchase Goods & Services• FinTech Partnerships - Google Pay, Braintree, Ripple

- VISA, Mastercard

Phase 3 Budget: $2M

Social Impact

Ethical Implications:

• Economic empowerment- 3000+ Loans disbursed- 5000+ trained in financial literacy

• Women in Leadership• 2000+ Jobs Created• 1800+ Enterprises created

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Recap (What we told you)

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• Project Updates / Phase Review• CSR Initiatives

– Financial Literacy Campaign• Partnership Updates

– Samsung, Youth Orgs• Social Impact • What are we asking for?

– Investment of $1.5M for phase II

Chief Information Officer+1 302 222 7777

cio@panafricanbank.co.ke

Thank you!

www.panafricanbankgroup.com

PanAfricanBank PanAfricanBank