Re-Inventing Pakistan by Exploiting its potential – Can Pakistan compete? Nadeem Hussain Founding...

Re-Inventing Pakistan by Exploiting its potential – Can Pakistan compete?

Nadeem Hussain Founding President & CEOTameer Microfinance Bank September 28, 2011

i TameerTriple the Bottom-line

[email protected]

www.i-tameer.org

mailto:[email protected]

http://www.i-tameer.org/

1. The Impact of Financial Exclusion on the Economy.

2. Pakistan’s position-solutions and global competition.

“In order to compete, Pakistan must materially reduce its current level of financial exclusions”

Can Pakistan Compete?

•205 Billion adults in the developing world are considered financially excluded.

•Access to mobile financial services has the power to increase GDP growth by up to 5 percent.

Global Financial Exclusion

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•Mobile financial services lowers the barriers to adoption through reduced entry cost, reduced services price and more suitable position.




Huge dividend if we succeed in reducing financial exclusion 5


State of Global Mobile Financial AccessGlobal Successful Deployments

Service providers

G-CASH(Philippines)

2

Smart Money Smart(Philippines)

3

M-PESA (Kenya)

4

Mobile Money(South Africa)

5

M-banking products

Easypaisa (Pakistan)

1

Domestic P2P

Domestic P2P

Airtime top up

Airtime top up

Bill payment

Bill payment

International remittance

International remittance

Business solutionsBusiness solutions

Fixed term deposit

Fixed term deposit

LoansLoans Micro-insurance

Micro-insurance

ATMATM

Mobile Commerce Banking products

Loan collection

Loan collection

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Status of Mobile Financial Services in Pakistan

•Voted Globally in top 3 in terms of Regulations by World Bank

Fastest growing market

Considered the new model

Achieved 2nd position in terms of volume

“When focus is provided, Pakistan is capable of achieving world class standards”

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Pakistan’s First Branchless Banking

Deployment

Nadeem HussainCEO & Founding President

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Easypaisa: Themes

Expanding agent network for cash deposit, withdrawal, money transfers and account opening

OTC Channel open to everyone

Extended timings, no queues and minimal paperwork

Mobile Accounts for more convenience and security

Expanding agent network for cash deposit, withdrawal, money transfers and account opening

OTC Channel open to everyone

Extended timings, no queues and minimal paperwork

Mobile Accounts for more convenience and security

Product

State Bank of Pakistan’s robust branchless banking framework, detailed guidelines

Licensed bank behind all transactions with country’s first branchless banking license

Telenor ownership in the bank for seamless integration of banking platform and mobile phones

Agent network and its familiarity of mobile -based transactions

State Bank of Pakistan’s robust branchless banking framework, detailed guidelines

Licensed bank behind all transactions with country’s first branchless banking license

Telenor ownership in the bank for seamless integration of banking platform and mobile phones

Agent network and its familiarity of mobile -based transactions

PlatformFinancial Services for the financially excluded

Transfers, deposits, bill payments and savings for the individual

Agent / franchisees to expand business

Government to formalize transactions currently outside the banking industry

Financial Services for the financially excluded

Transfers, deposits, bill payments and savings for the individual

Agent / franchisees to expand business

Government to formalize transactions currently outside the banking industry

PromiseSafe, more convenient, more accessible

Platform builds on secure regulatory framework, trustworthy banking and extensive low cost distribution

Products are going to benefit, individuals, small businesses, partners and government

“MAJOR STEPS TOWARDS REDUCING FINANCIAL EXCLUSION”

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Easypaisa: Focus on an Individual’s Needs

“ONLY 12% of PAKISTANIS HAVE ACCESS TO FINANCIAL SERVICES”

How does this man …

1. Pay Bills?

a) Transfer money domestically?

b) Internationally from family?

2. Repay Loans?

a) Save?

Market Potential

1. $30 million in bill payments per month

a) Money transfers:

Domestically - $7bn per year

Internationally - $9bn per year

2. Savings – only 12% of the population has access to formal financial services

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Easypaisa: Product Range

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Suite of financial services being offered:Mobile accounts (M-wallet)Payments (bills, person)Cash depositsCash withdrawalsATM Cards (Future)Funds Transfers (Inter-bank, a/c to a/c)Interbank Funds Transfer (Future)

Money transfersOver the CounterCNIC to CNICM-wallet to CNICCNIC to M-Wallet

Donations (SOS, SKMCH, RED CRESCENT) Utility Bill PaymentsOver-the-CounterInternational remittanceCash to counterCash to m-walletCash to other banks

M-commerce (Future)Retail Purchase and settlement Government Payment Platform for Microfinance Industry for loandisbursement & Collection


Customer- Merchant Model

“Mobile Account Transaction”

“Over the Counter Transaction”

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Easypaisa: The Way Forward

Bill PaymentDomestic

Remittances International Remittances

M-Wallet

Target Customers18 million Bill

paying HH10 million

migrant workers4.5 million expatriates

68 million un-banked

population

2010 2011 2012

Customers (in ‘000) 800 3,300 5,600

Retailers (Agents) 12 000+ 20 000+ 30 000+

New Products

Savings, insurance, loans, merchant

purchases

Social and Economic benefits

Business Ambitions

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Re-Inventing Pakistan by Exploiting its potential – Can Pakistan compete? Nadeem Hussain Founding...

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