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TRANSFORMINGTRANSFORMINGTRANSFORMINGTRANSFORMING
FINANCIAL SERVICESFINANCIAL SERVICESFOR UNDERFOR UNDER--SERVED MARKETSSERVED MARKETS
The Macroeconomics of Mobile Money
Securing Mobile!Money:The Ugandan Experienceg p
Friday, April 2, 2010Columbia University
Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
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Our Technology and Executive Leadership Helped Pioneer the Mobile Banking Space
• Our Chief Technology Officer and
Technology HistoryMAP’s Information Technology
Group
gy
Chief Information Officer were both members of the original architect team of Fundamo – one of the first mobile banking technology firms:
• Based in Cape Town, the Group boasts 20+ full time team members, including a full staffing of:
! Solution Architectsg gy
! Led comprehensive implementations throughout Africa and the MidEast
! Developed the Mobile Security Solution, the industry’s first pin-based
! Business Analysts
! Project Managers
! Developers
! Graphic DesignersSolution, the industry s first pin basedsystem still utilized throughout the Fundamo network
• Our CTO went on to build a technology development house to create and
p g
! DBAs & Networking Specialists
• The Group can manage the full spectrum of MAP’s product offering including:de e op e ouse o c ea e a d
deploy the next generation of mobile financial services
• MAP acquired the group, technology, and IP in early 2009
including:! Biometric ID systems
! ATM switching and management
! POS switching and processing
! Mobile banking
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and IP in early 2009 Mobile banking
! Partner integration and maintenance
The Technological Backbone to MAP is Provided by a The Technological Backbone to MAP is Provided by a Proprietary HUB Mobile Banking SystemProprietary HUB Mobile Banking System
• The MAP HUB Intelligently routes
multiple transaction types that originate
from multiple communication devices:
Point of Sale Terminals ATM’s Mobile
FINANCIAL PLATFORMFINANCIAL PLATFORM
Point of Sale Terminals, ATM s, Mobile
Phones, and PC’s),
• The HUB also integrates between
multiple Companies, Banks or Financial
Institutions, Databases & Application
Modules to return a desired transaction
type to the originating device
• The HUB enables multi channel layerThe HUB enables multi channel layer
communication and multi tiered
architecture
• The HUB can transact: Person to Person
(P2P), Business to Person (B2P), Person
to Business (P2B), and Business to
Business (B2B)
• The system is agnostic to mobile player
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The system is agnostic to mobile player
and financial institution
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The MAP Systems Also Offers a Unique Product The MAP Systems Also Offers a Unique Product Distribution PlatformDistribution Platform
• The platform provides
for the creation of
multiple franchises and
products distributedproducts, distributed
through a pre-registered
vendor network
• Franchisees operateFranchisees operate
independently from one
another and in turn are
responsible for the setup
of their entire down-line
• It enables the selling of
multiple virtual products,
ffwith different discount
structures
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Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
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Executive Sponsorship Secured Uganda as the Executive Sponsorship Secured Uganda as the Launch Market for MAPLaunch Market for MAP
Th MAP t fi t i it d t U d b th P id t! The MAP team was first invited to Uganda by the President,
Yoweri Museveni, to explore areas for partnership
! MAP was asked to focus on his two key concerns:
" #1All governmental salaries as well as most other salary payments#1All governmental salaries, as well as most other salary payments,
were paid in cash
– This led to rampant abuse, ghost workers, fraud, shrinkage, and loss
" #2 A network of rural unregulated banks, SACCOs, were the weak
backbone of the Ugandan rural economybackbone of the Ugandan rural economy
– SACCOs lacked the financial stability and trust of the people to
properly offer modern financial services
! The MAP offering has evolved to meet the immediate needs of
Uganda
Country Profile:
P l ti 32 4 illi• Population: 32.4 million
• Pop. Growth Rate: 3.2%
• GDP: $15.04B (2008 estimate)
• GDP Growth Rate: 6.4%
GDP it $465
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• GDP per capita: $465 per year
• Mobile Phones: 8 Million (2009)
The Nature of the Ugandan Initiative is a Public Private The Nature of the Ugandan Initiative is a Public Private PartnershipPartnership
Key Competitive Building Blocks (Uganda):
! Three way, exclusive contract and subsequent agreements with the
Government of Uganda and the government-owned PostBank to:Government of Uganda and the government-owned PostBank to:
" Convert 100% of PostBank current and new customers to MAP cardholders
(currently 300k active account holders with an ambitious growth plan to 1M
customers)
" Process all federal salaries and pension payments" Process all federal salaries and pension payments
" Rollout ATM’s at all PostBank branches
" Rollout a country-wide network of POS units
" Incorporate the 800+ unregulated SACCO’s (micro-finance institutions) into the
regulated environment under the PostBank umbrellaregulated environment under the PostBank umbrella
" Provide ATM, POS, and mobile switching capabilities
" Rollout a linked mobile banking platform
! Exclusive contract with one of the country’s largest agent-based airtime
distribution network, X-Tel
! Partnership and distribution agreements with the national mobile network
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! Partnership and distribution agreements with the national mobile network
operators
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Review of MAP Progress to DateReview of MAP Progress to Date
! Card approved by Central Bank for International KYC standardsAll 350 000
Card approved by Central Bank for International KYC standards
! Proprietary MAP Data Capture Stations deployed at PBU branches
! Cards produced in MAP’s Kampala office and distributed by PBU branches
! 75,000 cards have already been deployed; additional 35,000 accounts
enrolled at mobile biometric events
Bio
Card
All 350,000
PBU
customers will
have cards by
12/2010
cts
cts ! 26 ATMs currently deployed at all PostBank branches
! MAP processes all ATM switching with its own propitiatory switch
Average
transaction
volume:
P P
rod
uP
Pro
du 73/day/ATM
165 POS
MA
PM
AP ! Agreements achieved with Shell, Total, Haas Gas Stations, representing
over 300 service stations
! Three-year goal of 3000+ POS access points
devices
deployed at
leading
retail points
! First mobile program launched in early December (Uganda Telecom)
! Full functionality currently available
! Can be accessed through any Java-enabled mobile phone
PBU Market
Launch:
Q1 2010
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Q1 2010
In August of 2009, MAP Signed an Agreement with Wazalendo, the Country’s Largest SACCO
Wazalendo Military SACCO
! 50,000 members (80,000 expected
by 2011)
MAP Revenue Streams
! MAP receives an enrollment fee for all
t h ld ($3 USD)y )
! 14 branches across the country
! Members include Ministry of
Defense workers, UPDF personnel
and retired officers and their families
account holders ($3 USD)
! Wazalendo contractually provides a monthly
subscription fee for each account holder to
MAP ($.50 USD)
! Wazalendo has signed a contract with MAP for MAP to provide all branches a core
Basic Agreement
Wazalendo has signed a contract with MAP for MAP to provide all branches a core
operating system, biometric card system, ATMs, POS devices and mobile banking
! The solution will automate all SACCO transactions and create a full audit trail
! All SACCO funds will be held at PostBank affording regulatory oversightAll SACCO funds will be held at PostBank affording regulatory oversight
! Wazalendo account holders will be able to access their accounts from any MAP access point
across the country, as well as from their mobile phones
! Enrollment began on November 23rd, and 34,000 account holders have been
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Enrollment began on November 23 , and 34,000 account holders have been
enrolled
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LAP Green, a Multi-Market African Mobile Phone Operator has Selected MAP as its Mobile Banking Partner
• MAP’s proprietary technology will power• MAP s proprietary technology will powerLAP Green mobile money and mobile banking products
• MAP will be an ongoing operational
LAP Green’s LAP Green’s Operator PortfolioOperator Portfolio
g g p
partner, and the two partners will share
product revenues
• Lap Green will use MAP’s nation-wide network of commercial access points
• MAP will assist in direct-to-consumer mass marketing efforts and its logo will be included on all collateralbe included on all collateral
• MAP and LAP will soft launch with Uganda Telecom in December of 2009:
! Five year expected profit contribution ofe yea e pected p o t co t but o o$20+ million
• MAP and LAP will launch with Rwandatel in Q2 of 2010
! Five year expected profit contribution of $17+
With over 5 million subscribers, and additional
licenses in two new countries (Togo & Sierra
L ) L G i f Af i ’ l di
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Five year expected profit contribution of $17+million
Leone) Lap Green is one of Africa’s leading
mobile phone operators
Table of ContentsTable of Contents
• About MAP
• Case Study: Uganda
• MAP in the News
12
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Presidential Visit to OfficePresidential Visit to Office
MAP’s launch was met with
palpable regional excitement
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MAP Launches ATMsMAP Launches ATMs
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MAP Partners with Military SACCO
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MAP Launches Linkage Banking
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Two United Nations Publications Featured MAP Over the Last Year
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MAP was also invited to address the UN and the European Parliament
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MAP’s Growing Profile Led to its Nomination for a GSM Association Global Mobile Award
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