Trust Merchant Bank - cashlearning.org · Pepele Mobile is the “Mobile Banking”service of Trust...

Trust Merchant Bank – Goma, March 31st

The Experience of Pepele Mobile in the DRC : Cash and Commodity Voucher

I. Introducing TMB and Pepele Mobile

II. Pepele Mobile Cash Voucher Solution

III. Pepele Mobile Commodity Voucher Solution : E-Voucher

1. Service description2. Client functionalities3. Merchant functionalities4. Donor/funder functionalities5. More financial inclusion

IV.Demonstration and Q&A

Contents

• TMB was established in 2004, in the DRC’s second city, Lubumbashi;

• Over the years the Bank has developed into a universal bank that provides financial services to all

segments of the population;

• The leitmotif of financial inclusion lays at the core of the Bank’s expansion strategy and on its 10th

birthday the Bank gave itself the objective of reinventing itself;

• Today TMB is one of the largest commercial banks in the DRC:

• Number 1: Branch network, total clients, term deposits;

• Number 2: Client deposits;

• Number 3: Balance sheet, lending, regulatory capital.


TMB, a pioneer in retail banking in the DRC


TMB reinvented itself in 2015

Challenges

• Civil servant payroll

• Bancarisation in the DRC

• Financial inclusion

• Formalisation of economic activity

The traditional approach of a bank is too expensive and

risky for remote areas or areas with low population

density.

Poor or non-existent infrastructure reinforce this view.

Solution

Pepele Mobile is the “Mobile Banking” service of Trust Merchant Bank that allows any mobile phone user

in the DRC to access a wide range of financial services regardless of the mobile operator they use.

Pepele Mobile is characterised by three major assets that facilitate its adaptation in the local market:

Ease of use: it functions « At any time on any mobile phone and on every network »

Security: the underlying technology authenticates transactions at many levels;

Flexibility: it offers a variety of easy to use features that meet the needs of financial transactions of

individuals and businesses.

Pepele Mobile is:

Multi currency: CDF and USD

Multilingual: French, English, Lingala, Swahili, Tshiluba et KikoWFP

Multi-channel: SMS, Smartphone App, Interactive Voice Response, Web, PC,…


TMB’s revolutionary mobile banking service

• A proven track record when managing logistical

challenges: 70+ branches and sub-branches

opened in 6 years across the country;

• An unrivalled branch network with 90+ access

points in 30 cities and 1,400+ dynamic

employees;

• The premier financial institution in the country,

earning the confidence of +900k clients;

• Reference bank for payroll services;

• Particular focus on SMEs included in the PPLM

business model, with agents central to the model

and multipliers of bancarisation.


Digital financial inclusion


The Pepele Mobile Ecosystem

Agent:

• TMB Branches

• Independent Dealer

• TMB ATMs

Client

Entreprise Merchant/Biller

Outlets that provide Pepele Mobile services: TMB branches and third party

independent Pepele Mobile outlets

End user of the service using a multitude of functionalities

Organisation that uses Pepele Mobile to manage multiple

transactions, including payroll and grant-aid transactions

Business that sells goods and services and that accepts Pepele Mobile as a

payment method

BulkPayments

FundTransfers

Airtime

Merchant Payments

Cash Collection

Deposit

Withdrawals

Voucher


Pepele Mobile functionalities

How it works?

Via SMS 4008

Via IVR 4008

Via Mobile Application

Via web site www.pepele.cd

The aim is to use Pepele Mobile as a payment and management tool for various mass transactions

tool (payroll, per diems, representation expenses, subventions, etc.) in favour of various

beneficiaries. This will benefit :


Bulk Payments

For the Company/WFP/UN Agency:

Autonomous execution of payroll

Reduced absenteeism at work during payroll period • more access points for clients

Reduced risk in cash management operations

Simplification of accounting reconciliations

For the beneficiary clients:

Instant availability of funds credited to them

Improved monitoring of payments received • traceability system


Bulk Payments

Company :

Send the list of beneficiairesand make the

fund available to the bank

TMB :

Proceed to enrollment if

necessary and manage liquidity

within PepeleMobile

ecosystem(branches,

independantdealers, ATM, mobile team)

TMB

Upload the payments

instructions in the system and

Educate the beneficiaries

Beneficiaries :

Receive SMS Notifications

and Cash OUT the amount

needed

Company :

Access to Reports Online and Real Time

An administrator will be able to transfer funds to beneficiaries through pepele mobile web interface

by uploading a file in the format below :

A secure code will be generated by the plateform for each payment and will be requested to validate

the transaction


Bulk Payments

III. Pepele Mobile Commodity voucher Solution

1. Service description of E-Voucher

Pepele e-Voucher is a tool to :

Create and manage payment, grant-aid, and transfer programmes across all stakeholders.

Track all programme payments made to recipients – reducing fraud risk and payment duplication risk.

Track all payment activity by recipients – controlling how funds are spent by recipients.

Track all programme payments received and processed by accepting merchants.

Generate a full suite of end of day/period reports



Administrators

Pepele

Voucher

Pepele

Mobile

Merchant

Clients

1

4

3 2

1: Administrators create the programme2: A recipient makes payment at a merchant with programme funds3 : Pepele Mobile reconciles the Pepele e-Voucher and makes payment if the

transaction is permitted under the programme4 : The Pepele e-Voucher administrators monitor all transactions

Example of an e-voucher programme :

WFP wants to subsidize food purchases of programme beneficiaries. WFP wants to subsidize 80% of theproduct purchased for up to $100 per beneficiary.

The merchant's payment is carried out in real time during the transaction. When the transaction ismade the Pepele Mobile account of the beneficiary is debited 20% of the purchase amount and theprogramme account dedicated to the beneficiary (pre-financed by WFP) is debited 80 % of the purchaseamount. The total purchase amount is paid to the merchant. It is possible to define grants ranging from 0% to100%.

These grants will be available to beneficiaries only when paying with the grant at pre-approvedmerchants participating in the programme and when purchasing products included in the programme.



Model of vouchers



Programme

MerchantsRecipients

ProductsDonor/

Funds

providers

Fund(s)

Accounts



Methodology:

Programme

An e-Voucher programme is defined by:

The programme nameThe programme status (pending, active)A programme expiry dateA list of products available with a given contribution (percentage of the product price paid for by the donor) for each productA list of recipient accounts (phone number of recipients)A maximum cap on the amounts any one recipient can receive as part of the programme.

Example : “Programme 100% Foire July 2017”, expiring 31/07/2017, Rice (20kg) for a maximum value of US$100 per recipient. A list of recipient accounts associated with the programme.



Product :

A product is defined by:

A label (its name, e.g. ‘bread’ or ‘doctor’s appointment’)A fixed unit priceA currency

The product will be available from a shopping list. The trader will have access to the product price only when a payment transaction that falls under the specific programme is initiated by the client (see client experience).



Recipient :

A recipient is defined by:

A mobile telephone numberThe (recipient) client’s Pepele Mobile reference The recipient’s status (active, inactive)

A recipient may have multiple grant accounts (i.e. participate in a number of programmes).A recipient can have one grant per programme.

A recipient must be registered with the service before she can access her account.



BALANCE

For the balance of the grant account, the recipient can send an SMS with the text "BALANCE" in 4008. He receives

back an SMS with his account balance and total available under the programme grant.

HISTORY

The recipient can access her transaction history details by sending an SMS with the text “HISTORY” to 4008. He

will then receive by SMS details of his account’s last three transactions.


2. Client functionalities

The Merchant initiates the programme related payment transaction on the transaction application TP1600.Before validating the transaction, the amount financed by the programme is displayed.The Merchant can access their account details on the Pepele Mobile website.A list of transactions processed may be exported at any time


3. Merchant Functionalities

The donor/programme funder is set-up with an ‘enterprise’ account in Pepele Mobile. The donor/programme funder may check their account balance online at any time


4. Donor/Funder functionalities

Transaction reports are available real time via the web interface.A daily report listing all of that day’s transactions is automatically generated and emailed to the client.

The report can also be generated on request by TMB.

Report Format:

.

An account status report is also automatically generated and emailed on a daily basis to the client. It too can be generated on request by TMB.

Report Format:


4. Donor/Funder functionalities


5.More financial inclusion

What are the benefits of using Pepele Mobile E-Voucher ?

To promote financial inclusion;

To facilitate access to bank financing for beneficiaries

To develop a sustainable approach to the programme financed by reducing dependency of beneficiaries on donors;

To improve the use cases options for digital payment and extend payment system footprint;

To fuel economic growth by mobilising savings for investments, reducing transaction costs and increasing efficiency;

To assure transparency of funds spent and provide a full audit trail

To reduce programme administration costs, allowing optimal use of donor funds focused on core programmeinitiatives

IV. Demonstration and Q&A

A test programme called « Maize July 2017 » active until 31/07/2017, for two products « FERTILIZER » and « SEED », to a maximum of US$50 per programme recipient.

FERTILIZER : 5 000 CDF, grant to 100%SEED : 10 000 CDF, grant to 25%

A list of recipient accounts associated with this campaign, one account per recipient.

The products are available at a pre-selected merchant at a pre-agreed price.

When the programme starts each recipient receives an SMS notifying them of their allowance under the programme:


The grant aided payment transaction is initiated by the merchant on the TP1600 transaction application


The client's (recipient’s) account is debited and the donor’s programme account is also debited for the amount of the grant used in the transaction:

Trust Merchant Bank - cashlearning.org · Pepele Mobile is the “Mobile Banking”service of Trust...

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