8/8/2019 VF CR Dialogue 3 Economic Empowerment
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The VodafoneCR dialogues
economicempowerment
through mobile
8/8/2019 VF CR Dialogue 3 Economic Empowerment
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The VodafoneCR dialogues
ContentsIntroduction 01
Mobile phone banking and low-income customers:EvidenceromSouthArica,byCGAP 02
A sense o balance:Asocio-economicanalysisoairtime
transerservicesinEgypt,byForumortheFuture 05
Mobile-enabled transactions or the base o theeconomic pyramid:Abriereviewothe2006state-o-play,bytheWorldResourcesInstitute 11
ThisseriesopapersTheVodaoneCRdialoguesexploreskeyissuesweaceinmanagingourrelationshipswithsociety.Ouraimistoconsidernewideasandstimulatedebate.
IourCRreportocusesonourmostmaterialissues,theVodaoneCRdialoguesexplorethemindepth.Theyalsoextendourengagementprogrammebecauseweinvolveexpertsandstakeholdersoneachissueinordertoenrichthedebate.
TheVodaoneCRdialoguescovertopicsthatarespecictothetelecommunicationsindustry(suchasprivacyoraccessibility)andalsothosethatrefecttheprocessesoacorporateresponsibilityprogramme(suchasstakeholderengagementorassurance).Weaimtoullyexploretheseissuesandthereorevaluegreatlytheopinionsoothers.
Wewelcomeyourthoughtssopleasesendusyourcommentsorideasto:
Wewouldliketothanktheollowingorganisationsortheirhelpinproducingthispaper.
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Introduction
IntroductionWelcometoourthirdCRdialogue,oneoaseriesopapersdesignedtoexploreissuesthatarespecictoourindustry(suchasprivacyandaccessibility)andalsothosethatrefectapproachestocorporateresponsibility(suchasstakeholderengagementandassurance).Ouraimistoshareourlearningsandthelearningsootherswithaswideanaudienceaspossibleandtoprovideaorumtoconsidernewideasandstimulatedebate.Wewelcomeyourthoughtsandactivelyencourageyourinvolvementinthediscussion.
Webelievethatthemobileindustryhasgreatpotentialtogeneratepositivesocialandeconomicdevelopmentparticularlyorindividualsinthedevelopingworld.IndeedtwoyearsagotheoverwhelmingamountoevidencearoundthisresultedinourrstSIMreportwhichoutlinedthebroadimpactthatmobilephoneshavehadindevelopingcountries.Sincethenthedebatehasmovedorwardandthepotentialormobilestoactasconduitsorbankingservicesisnowbeingexplored.
VodaonehasbeeninterestedinmobilebankingandmicropaymentsorsometimenowandoursuccessindevelopingM-PESA,amicropaymentsolution,istestamenttoourlong-termcommitmentinthisarea.M-PESAhasbeendevelopedasapartnershipwiththeUKDepartmentorInternationalDevelopment(DID)andisexpectedto
launchinmarketsacrossAsiaandAricashortly.
Itisclearromthecombinedresultsothethreereportsoutlinedinthispaper,thatthepotentialormobilebankingtoassistpeopleonlow-incomeisenormous.Isuccessullymanagedwehopeitwillhaveadramaticandpositiveeectonthelivesopeoplewhocurrentlylackaccesstotraditionalbanks.Thisiswhywesupportknowledgesharingandwanttoworkwithotherstoexplorenewwaystoreachthosewhoneedtheseservicesmost.
TheCRdialoguebeginswithasummaryoarecentlyreleasedstudytitledMobilephonebankingandlow-incomecustomers:EvidenceromSouthArica.IwouldliketotakethisopportunitytothanktheConsultativeGrouptoAssistthePoor(CGAP)oragreeingtosharethisstudy,whichwasdesignedbyCGAPandproducedthroughapartnershipbetweenCGAP,theUnitedNationsFoundation,andtheVodaoneGroupFoundation,withimportantcontributionsromSouthAricasFinMarkTrust.ThestudyshowsthatpoorpeopleinSouthAricaareusingmobilebankingservicesandvaluethemhighly.Italsoidentiesthechallengesinbringingmobilebankingtomorepoorconsumers,includingtheneedtobetterunderstandpoorpeoplesperceptionsobanking,technologyandmobile-banking.
ThesecondreportisasummaryoourworkwithForumortheFuturetounderstandthesocialandeconomicbenetsoaspecicproduct,AirtimeTranser,whichhasbeenwidelyavailableandusedinEgyptsinceSeptember2004.Thekeylearningromthiswasthat,inadditiontotheeconomicbenetthatsharingairtimebrings,thesocialbenetisalsoconsiderable,particularlyoramilies,whichareotenseparatedoreconomicreasons,andwhomightotherwisebeunabletokeepintouch.Finally,wehaveaskedtheWorldResourcesInstitute(WRI)tooutlinethevarietyowaysthatmobiletelephonesarecurrentlybeingusedtodeliverdierenttypesonancialservices,includingmobilepurchasing,electronicmoneyandelectronicbanking.Thisreportexploreswaysinwhichtraditionalbusinessmodelsarebeingchallengedandoutlinesthecommercialopportunitiespresentedbyservicingthebase-o-the-pyramidmarket.
Inordertobesuccessulwemustlistentoourcustomersandadaptouroeringstosuittheirneeds.In2005therewere.4billionmobilephoneusersindevelopingmarkets,theWRIestimatethattherewillbe3billionby200.Individualswhowerepreviouslysilentandignoredcannowbeheardandindustrymusttakeaccountothis.Thesethreereportssuggestthatthismeanschallengingtraditionsandadaptingexistingbusinessmodelsinorderto
providereal,relevantbenets.
Itsachallengewelookorwardtoembracing.
Charlotte Grezo
Charlotte GrezoDirector o CorporateResponsibility
CharlottejoinedVodaoneinJanuary200witharemit
toestablishaGroupCorporateResponsibilityunction.ThisincludesworkingwiththeGroupssubsidiariesandaliatestoestablishthepoliciesandprocessestomanageCorporateResponsibilityattheGrouplevel.CharlottesroleistoleadCRortheVodaoneGroup;toensuretheachievementothestrategicgoalonresponsiblebusiness,promotethevaluePassionortheWorldAroundUsandtoensurethatthecommitmentsmadeintheVodaoneCorporateResponsibilityReportaredelivered.SheisaTrusteeotheVodaoneGroupFoundationandtheVodacomFoundation.DrGrezohasservedonarangeoGovernmentCommitteesandtaskorcesincludingACCPE(AdvisoryCommitteeonConsumerProductsandtheEnvironment)andtheSustainableProcurementTaskorce.CharlotteGrezojoinedVodaoneromBPwhereshewasDirectoroGlobalEnvironmentalIssues.
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1 Wetermthedeliveryobankingservicesthroughmobilephonesmobilebanking,orm-banking.Thetermsmobilepayments(m-payments)andmobilecommerce(m-commerce)arealsoused,butusuallytoreertotheuseomobilephonestomakeretailpaymentsandperson-to-persontransersonly.
2 GSMAssociation.GSMHitsTwoBillionMilestone.16June2006.3 BAI2005.TowerGroup2004.BoozAllen2004.4 FinmarkTrust.FinscopeSouthArica2005andFinscopeBotswana2004.5 Thecompletereportprovidesadetaileddescriptionothestudymethodology,includingimportantinormationaboutitslimitations.SurveyswereconductedinJulyandAugust2006.6 Porteous,David.MakingFinancialMarketsWorldorthePoor.PreparedorFinMarkTrust.October2004.
Asmobileusageexpands,somayopportunitiestobanktheunbanked.Withm-banking,low-incomepeoplenolongerneedtousescarcetimeandnancialresourcestotraveltodistantbankbranches,otenlocatedarrom
low-incomecommunities.Andsinceanm-bankingtransactioncostsarlesstoprocessthanatransactionstransactionatanATMorbranch,3bankscanmakeaprothandlingevensmallmoneytransersandpayments.
Mobileisalreadyreachingtheunbankedpoor:inSouthAricaandBotswana,one-thirdopeoplewithoutbankaccountsownamobilephoneorhaveaccesstoone.4Manyothesepeoplearepoor.M-bankingthereoreholdsgreatpromise.Butquestionsremainaboutwhetherpoorcustomerswilladoptm-banking.Forexample,willlow-incomecustomersviewbankingthroughtheirmobilephonesasreliable?Willlimitedschoolingandunamiliaritywithtechnologyslowtheiradoptionotheservice?
Thispaperpresentstherstpublicndingsonhowlow-incomepeopleviewandusem-banking,usingresultsromasurveyo55low-incomeindividualsinSouthArica.5Threehundredothosesurveyeddonotusem-banking,while25arecustomersoWIZZIT,astart-upmobilebankingproviderthattargets
the6millionSouthAricanswholackorhavedicultyaccessingormalbankingservices.WIZZIToersabasiccurrentaccountaccessibleviamobilephoneandaMaestro-brandeddebitcardthatcanbeusedatATMsandbranchesotwomajorbanks.WIZZIThasaccumulated50,000customerssincebeginningull-scaleoperationsin2005.
Whilethendingsothisstudyarenotrepresentativeoalllow-incomem-bankingusersandpotentialusersinSouthArica,theyareencouragingandpointtoimportantchallengesandopportunitiesorthoseseekingtoincreaseadoption.Low-income WIZZIT customers value the m-banking service or itsaordability, ease o use, and security.RespondentsindicatedtheyuseWIZZITbecauseitischeaper(70%),sae(69%),convenient(68%),andast(68%).Oallbankingchannels,m-bankingallsclosesttowhattheWIZZITuserssurveyedsayistheiridealwayodoingbanking.Nineouto0surveyedsaythem-bankingserviceisnotexpensiveorinexpensiveorthebenetsitgives.Incontrast,theseuserssaybankbranchesandATMshavehigheesandlongqueues,poorcustomerservice,andcarrytheriskorobbery.
ThecostoanaveragebasketotransactionsappearsconsiderablycheaperthroughWIZZITthanthroughtheleastcostlyull-serviceaccountsoeredbySouthAricasBigFourbanks.WIZZITalsoappearslessexpensivethantheMzansiaccount,anentry-levelaccountdesignedbySouthAricasbanksespeciallyorlow-incomecustomers.Forthesamebasketotransactions,WIZZITchargesaboutUS$6permonth,whiletheBigFourbankschargeUS$9withthecheapestull-serviceaccountandUS$8withtheMzansiaccount.FinMarkTrusthasdetermined2%oincometobethemaximumpoorpeoplecanaordtopayoraccesstobasictransactionbanking.6Atthesecosts,WIZZITallsbelowthethresholdowhatwouldbeaordabletothe
poor,whiletheull-serviceandMzansiaccountsareaboveit.
Perhapsbecausetheyperceiveittobelowercost,convenientandsecure,WIZZITscustomersconductmorebankingtransactionspermonthusingtheservice(9.3permonth)thannon-usersconductatallotherchannelscombined.WIZZITcustomerspreertousetheirmobilephoneoverotherchannelstopayorpre-paidelectricity,transermoney,buypre-paidairtime,checkaccountbalancesandpaystoreaccounts.
Gautam IvaturyCGAP
GautamIvaturyisamicronancespecialistwiththeConsultativeGrouptoAssistthePoor(CGAP),
aglobalresourcecentreormicronancestandards,operationaltools,training,andadvisoryserviceswhosemembersincludingbilateral,multilateral,andprivateundersomicronanceprogrammesarecommittedtobuildingmoreinclusivenancialsystemsorthepoor.IvaturymanagesCGAPsTechnologyProgramme.BeorejoiningCGAP,hewasVicePresidentoFinanceandAdministrationatSKSMicronanceinIndia,aninvestmentanalystatInternationalFinanceCorporation,andco-oundedastart-upeducationtechnologyventure.IvaturyalsoworkedasaninvestmentbankeratDonaldson,Lukin&Jenrette(nowCreditSuisse).HehasaMastersdegreeinInternationalAairsromJohnsHopkinsUniversity.
Mark PickensCGAP
MarkPickensisamicronanceanalystworkingwithCGAPsTechnologyProgramme,with
responsibilityorshapingstrategyaroundbranchlessbankingandrontiermarkets.PriortojoiningCGAP,heconsultedorbanksandmicronanceinstitutionsinBosnia,Cambodia,andMadagascar,helpedgrowaleadingNewYorkCitymicrolender,andwasseniormanagerinanaward-winningInternetstart-upnewsportal.HebeganhiscareerwithDevelopmentAlternatives,Inc.,aconsultingrmspecialisinginsolutionstosocialandeconomicdevelopmentchallenges.HehasaMastersdegreewithaspecialisationinmicronanceromColumbiaUniversity.
Mobilephonebankingandlow-incomecustomers:EvidenceromSouthArica
The ollowing is an executive summary o a longer study designed bythe Consultative Group to Assist the Poor (CGAP), and produced througha partnership between CGAP, the United Nations Foundation, the VodaoneGroup Foundation, with important contributions rom South AricasFinMark Trust.
Bankingthroughmobilephoneshasbeencommonindevelopedcountriesor
years.Buttherealpotentialom-banking
maybetohelpgivemillionsopoorpeopleaccesstonancialservicesorthersttime.Earlierthisyear,themobilephonebecametherstcommunicationstechnologytohavemoreusersindevelopingcountriesthanindevelopedones. 2Morethan800millionweresoldindevelopingcountriesinthepastthreeyears.
Authors
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Awareness o m-banking is low, and non-users have negativeperceptions about banking and m-banking that are restrictingtheir rate o adoption.MostpeopleinSouthAricahaventheardom-banking.Althoughnon-usersliveinthesamemunicipalitiesasWIZZITusers,65percentonon-userssurveyedwerenotamiliarwiththetermcellphonebanking.Amongsurveyrespondentswhowereamiliarwithm-banking,only%namedWIZZITasaprovider.Thismaybeonereasonwhynon-usersperceivem-bankingascostly.Non-usersguessedthatanaverageWIZZITtransactionwouldcostUS$.70,whereasWIZZITactuallychargesbetweenUS$0.3andUS$0.66pertransaction.ButonceinormedthatamonthlyaverageoreesmaybeaboutUS$2.62,74%onon-userssaidthiswouldbeaordableorinexpensive.8
Asignicantnumberonon-usersarepessimisticaboutm-banking.Onlyaboutoneinthreerespondedthatm-bankingwillmakebankingmoreaordableandlessthan40%saidm-bankingwillbeassecureasotherbanks.ATMsareseenasconvenientandaordableandbankbranchesassecure,althoughtherearecomplaintsohigheesandlongqueues.
Attitudestowardsbankingingeneralareanotherchallenge.About84%onon-userswhoareunbankedsaytheywouldliketoopenabankaccount,butmanyseemtobelievethattheirincomeandemploymentstatusexcludesthemrombanking.Sixty-vepercentounbankednon-userscitealackoregularincomeasthemainreasonornothavingabankaccount,and60%citealackoemployment.
Signifcant numbers o WIZZIT customers are low-income, but theyoccupy the upper end o South Aricas low-income population on incomeand assets, and are more fnancially and technologically sophisticated.ThesurveyresultsdonotrevealwhethermostoWIZZITscustomersarelow-income,orwhethermostareafuent,butWIZZITdoeshavealargelow-incomecustomerbase.Forty-threepercentoWIZZITuserhouseholdssurveyedallbelowSouthAricaspovertylineoUS$257permonthoraamilyove,andaurther2%haveincomesupto50%othepovertyline(whichlikelymeansthattheyarestillvulnerable).
Thoughpoor,thesurveyedusersarebetterothanmostotherpoorSouthAricans.Only6%oWIZZITuserhouseholdsaredestituteaccordingtoaLivingStandardsMeasure(LSM)categorisationbasedonhouseholdassetsandincome.Bycomparison,6%oallSouthAricanhouseholds,and23%onon-userhouseholds,tthisdescription.Whileonly5%oWIZZITuserssurveyedreportedbeingunemployed,40%onon-usersand27%oallSouthAricanshavenojobs.AndonlyaquarteroWIZZITuserssurveyedwouldbedescribedasnanciallyunsophisticatedbyFinMarkTrustintermsotheirattitudes,knowledgeandbehaviourtowardsnancialservices,asopposedto93percentonon-usersand45%oallSouthAricans.
Comparedtonon-userswhoownmobilephones,WIZZITusersarealsomorelikelytousetheirmobilephonesoradvancedtasks,suchasusingitasadiary(62%ousers,9%onon-users)andplayinggames(64%ousers,39%onon-users).
Although users and non-users say they are open to using newtechnology, they still value human interaction.AlmostallWIZZITuserssurveyed(97%)saidthattheyarepreparedtousetechnology.Eight-onepercentonon-userssaidthesamething.Butothersurveyresultssuggestthatusersandnon-usersstillhavedicultywithtechnology,andmaypreerhumaninteraction.Fity-onepercentonon-usersand49%ousersagreewiththestatementthatyouwouldratherdealacetoacewithapersonratherthananelectronicdevice,evenithedeviceisaster.AndthemostcommonreasonwhysomeWIZZITuserssurveyedhavestoppedusingtheserviceisbecausetheydontunderstandthetechnology(27%).Thethirdmostcommonreasonisthatusersndtheservicetoocomplicated(23%).7
Mobilephonebankingandlow-incomecustomers:EvidenceromSouthAricacontinued
Table:CostousingWIZZITvstraditionalbankaccountorMzansiaccountTransactions Same transactions SameWIZZIT users w/ Big Four ull- transactions
conduct service account with Mzansi
Rand US$ Rand US$ Rand US$
Bankeescharged/mo 36 5 55 7 49 6
Airtimeees/mo 2 0 0 0 0 0
Transporttobank/mo 7 TOTALMONTHLYCOST 45 6 66 9 60 8
ANNUALISEDCOST 537 70 790 03 78 94
Annualcostasdaysoincome 7.5 0
Annualcostas%oannualincome 2.% 3.% 2.8%
Table2:AveragebasketotransactionsconductedbyWIZZITuserspermonthElectronic Set up Set up
Buy Balance Cash Cash Money Pay Mini- Pay store bank debit stop CheckTotal airtime inquiry withdrawal deposit transers electricity statement accounts transer order order deposit
Allbankingtransactions 2.8 3.7 2.7 .7 0.8 0.8 0.7 0.7 0.5 0.4 0.35 0.2 0.
TransactionsusingWIZZIT 9.3 2.6 .9 .3 0.7 0.5 0.4 0.5 0.5 0.5 0.3 0. 0.
7 RespondentswhostoppedusingWIZZIThadeducationandemploymentlevelssimilartocurrentusers,andweremorelikelytobeLSM5andliveinhouseholdswithhigherincomes.8 WIZZITsUS$2.64estimateisbaseduponcustomersusingelectronicdepositandcashbackatmerchantsormostotheirwithdrawals.UsersinthisstudyconductedmorecashdepositsandATMwithdrawals.
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0 20 40 60 80 100Users Non-users (cellphone) Non-users (no cellphone)
You try to avoid technology as much as possible
If you could, you would make more use of technology
Cellphone/mobile banking will makebanking more affordable to use
With cellphone banking, your moneywill be as secure as with other banks
Cellphone banking can be trustedif backed by a bank
Cellphone banking can be trusted
if backed by a cellphone company
26
24
2796
8779
9437
3193
4236
8856
5082
5745
Table3:Perceptionsamongusers(25),non-userswithmobilephones(49)andnon-userswithoutmobilephones(5)
Forexample,thestudyrevealsthatsomeSouthAricanswhoareunemployedandearnnopersonalincomeseemtobelievethattheydonotneedbankingservices,cannotaordthem,orareineligibletohavethem.Withaclearerunderstandingothisunemployedandunbankedsegment,m-bankingprovidersmaydiscoverbetterresultsinbrandingtheirserviceasasaer,moreconvenientpaymentmechanismratherthanasabetterbankaccount.Qualitativeresearch,suchaswithocusgroupdiscussions,maybehelpulinisolatingcriticalvariables.
Ultimately,allpoorpeopleneednancialservicestoincreasehouseholdincomes,buildassets,andbecomelessvulnerabletocrises.Withmillionsomobilephonesalreadyinpoorpeopleshands,CGAP,UNFandVGFseetremendouspotentialinthepoweronetworkoperators,banksandnewentrantstodelivernancialservicesthroughthischannel.
Theullreportcanbeaccessedatwww.cgap.organdwww.unoundation.org
ConclusionsThisstudyhasyieldedseveralinsightsromoneotherstinitiativesdedicatedtooeringm-bankingservicestothepoor.Itshowsthatm-bankingservicesarevaluedbypoorpeopleinSouthAricaandmaybemoreaordablethantraditionalbanking.Italsosuggeststhatm-bankingprovidersmustbuildgreaterawarenessotheirservices,andmustndtherightbalancebetweenahumantouchandtechnologytoappealtomorelow-incomecustomers.
Moreimportantly,thestudysuggeststhatlow-incomem-bankingusersinSouthAricatodayareearlyadopterswhoarewealthierandmoretechnologicallyandnanciallysophisticatedthanmostpoorpeopleinthecountry.Byidentiyingthatperceptionsaboutbanking,m-bankingandtechnologymaybeasimportantasincomelevelsindeterminingtherateoadoption,thestudyarguesoradeeperexplorationotheseperceptionsandhowtheymaybeusedtosegmentthelow-incomemarket.
Mobilephonebankingandlow-incomecustomers:EvidenceromSouthAricacontinued
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ForumortheFutureisaUK-basedsustainabledevelopmentcharity.Ouraimistoshowthatasustainableutureisbothpossibleanddesirable.Weworkwithorward-lookingorganisationsinbusinessandthepublicsectortondpracticalwaystobuildauturethatisenvironmentallyviable,sociallyjustandeconomicallyprosperous.Ourpartnerswhichincludecompanies,localauthorities,regionalbodiesanduniversitiesworkwithustoidentiyandovercomebarrierstomoresustainablepractice.Weidentiyopportunitiesorsustainablebusinessandchangethewayleadingcompaniesoperate,promotinggreenprocurement,encouragingethicalmarketingandosteringinnovation.
IntroductionMobilephonesarehavingatransormativeeectacrosstheglobe.Theyoeraccesstopeople,goodsandservicesandeconomicopportunitiesonascale
inthedevelopingworldthatismuchgreaterthanbeore.Theyconstituteanopportunityormoresustainablesocialandeconomicdevelopment,andnewmobile-basedservicesarecontinuallyappearingtosupportthis.
Person-to-personairtimetranserisonesuchservice,allowingmobilesubscriberstosendandreceiveairtimeorasmallee.Intheorythebalancetranserservice(BTS)isamechanismortheecientsharingoairtimewithinanetwork,makingmobileservicesmoreaordable.BTShasbeenintroducedintomanydevelopingworldmarketssuchasthePhilippines,SouthAricaandKenya.AlthoughanecdotalexamplesothepositivesocialandeconomicimpactsoBTSareemergingsuchasitsabilitytoenableairtimetobeusedasaninormalormoelectronicmoneytherehasbeenlittlesystematicresearchtodate.
ThispaperprovidessummaryndingsoastudyothesocialandeconomicimpactsoBTSinEgypt.Aullreportispublishedseparately 2.VodaoneEgyptlaunchedBTSinSeptember2004andthisstudyisbasedonprimaryresearch
conductedbetweenJanuaryandJuly2006. 3Duringthistime,weconducted:
James GoodmanHead o FuturesForum or the Future
JamesisresponsibleorFuturesworkattheForum,usingstrategic
uturesthinkingtohelporganisationsaddressemergingandlong-termsustainabilityissues.Hehasworkedextensivelyonthesocialandenvironmentalopportunitiesothedigitaleconomy,andwasaleadauthoroMakingtheNetWork:sustainabledevelopmentinadigitalsociety.
Vedant WaliaSustainability AdviserForum or the Future
Vedantworksinthebusinessprogrammemanagingcorporate
partnerships,providingstrategicadviceandconductingresearch.Keyocusareasincludeinnovativebusinessmodels,newnancingmethodsorsustainabilityandimplementationstrategiesacrosssectorswithaocusonnancialservices,transportandglobalbusinessinemergingeconomies.Heisparticularlyinterestedinexploringthesynergiesbetweennewtechnologies,productsandbusinessmodelsthatcanhelpdeliversustainablepro-poordevelopment.
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgypt
Sixocusgroups,eachwitheightBTSusers,inthreedierentlocationsandcoveringbothgenders,withdierentsocio-economicgroupsandages
Sixollow-upinterviewswithocusgroupparticipants
Fourinterviewswithphoneshopdealersandourinterviewswithairtimeresellers
Anationallyrepresentativequantitativesurveyo700BTSusersand300non-users.
Key fndingsWehavedevelopedvepropositionsbasedontheresultsoourresearchintothesocialandeconomicimpactsotheBTS:
Balance transer increases access to mobile servicesthroughenablinguserstoobtainreeorpaidorairtimeremotely
Balance transer improves aordabilitybyallowingairtimetop-upsinsmallerincrementsandaccesstoreeairtime
Balance transer creates commercial opportunitiesorresellerso
airtime,providingaviableandfexiblebusinessopportunityorawiderangeomicroentrepreneurs
Balance transer use supports social networksthroughreinorcingexistingrelationshipsandredistributingairtimewithinamilyorriendshipnetworks
Balance transer is not used as a proxy currencyduetosignicantcostandculturalbarriersaswellasalackoawareness,buthasthepotentialtosupportmobilepaymentsandmobilebankingservices.
Balancetranserhasmanysocialandeconomicimplications.However,wehaveoundthatthesocialaspectsaremorevisibleatpresentparticularlyintermsoreinorcingexistingamilyandriendshipnetworksandbuildingsocialcapitalastheserviceisnotdeliveringonitsullpotentialorenablingeconomicactivity.BTScanprovideeconomicbenetsdirectlythroughcreatingincomeearningopportunities,orindirectly,throughallowingmorelow-incomeindividualstoaccessmobileservicesorasanenablerorimprovingaccesstonancialservicesorunderservedgroups.Wepresentsomeoptionstodevelopthispotentialattheendothispaper.
WenowbriefyoutlinehowtheBTSworksandcategorisebroadusergroupsbeoreexaminingeachoourvepropositionsinmoredetail.
The balance transer serviceVodaoneEgyptisoneotwomobileoperatorsinEgypt,agrowingmarketwithapproximately2%mobilepenetrationinJuly200690%owhichareonprepaidtaris.4VodaoneEgyptoersdierentprepaidtariswithvaryingpricingandusagestructuresbutallthesetarisrequireairtimerechargecardssoldindenominationsstartingrom0EgyptianPounds(LE)/US$.73withoutaddedsalestaxgoingupinincrementsto200LE/US$34.84. 5Atersalestaxandvendorcommissions,retailpricesorthecardsstartat3-5LEor
the0LEcard,goingto4-8LEora00LEcard.The0LEcardhasrapidlygrowntobethemostpopularsinceitsintroductionin2005,indicatingthepricesensitivityotheEgyptianmobilemarket.The200LEcardhasamuchlowermarketpresenceandwasnotmentionedbyanyrespondentsinthisstudy.
Inordertoensurerevenuelevelsaremaintainedinlow-incomemarkets,manyoperatorsrequireprepaiduserstoconsumeairtimewithinaxedtimeperiod.PrepaidsubscribersinEgyptcanonlyusetheirphoneswithinvalidityperiodsprovidedbytherechargecardtheyusetotop-uptheirairtime.A00LE/US$7.42rechargecardgivesthebuyer90LEworthoairtimeandourmonthsvalidityinwhichtouseit.Lowerdenominationcardshaveshortervalidityperiods.TheBTSservicewasintroducedbecauseoseveralinstanceswherethevaliditysystemdidnotmatchamobileusersairtimeconsumption,eitherleavinglightuserswithtoomuchairtimeattheendotheirvalidityperiodorcausingheavyuserstorunoutoairtimeearlyonintheirvalidityperiod,orcingmanytorationtheirmobileuse.BTSenablesusersto
redistributeairtimeaccordingtotheirneeds.
1AirtimetranserisreerredtoastheBalanceTranserService(BTS)byVodaoneEgypt.WeusethetermBTSthroughoutthisreport.2Aullreportthatcontainsmoredataandanalysisaswellasaseriesocasestudiesisavailableatwww.orumortheuture.org.uk3Thisstudyreerstotariplansandbalancetranserservicesthatwereavailableduringthisperiod.TheBTSandVodaoneEgypttariplanshavechangedslightlysincethecompletionothisstudy.
4Source:VodaoneEgypt5Allcurrencyconversionsusedinthisstudyarebasedonratessuppliedthroughwww.XE.cominOctober2006.Theexchangerateusedis1US$=5.742LE.
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Thebalancetranserprocessisdescribedinthegurebelow.ItusesthestandardVodaonebalanceenquiryIVR(interactivevoicerecognition)costing0.2LE/US$0.03pertransaction.BTShasbeendesignedtobeeasytouseorthemajorityoEgyptians.Itdoesnotrelyonliteracy,abilitytousetextmessagingorothereatures,butisbasedonasimpleautomatedvoicecallwithapre-recordedmessagegivinginstructionsonwhichbuttontopressorxedairtimeamountso5,0or5LE.
Profling BTS usersBTShasprovedtobeoneotheastest-growingvalueaddedservicesintroducedintotheEgyptianmobilemarket.Forty-vepercentotheVodaoneEgyptcustomerbasehadusedtheservicebetweenSeptember200405andguresromJuly2006show5,624LE(US$8,994)beingtranserredin4,400transactionsinthatmonth. 6Inourqualitativeresearch,BTSwastheourthmostmentionedmobileserviceatercalls,missedcalls,andtexts.Theserviceisveryimportanttomanyusers.OnerespondentevenclaimedPeoplewoulddemonstrateinthestreetsitheBTSwaswithdrawn.
Weinterviewed,000Vodaonecustomers700BTSusersand300non-usersacrossEgyptbetween3and26July2006.7Comparedtonon-users,BTSuserstendedtobeyounger,single,morelikelytobestudentsandmorelikelytobeemale.Therewerenosignicantdierencesaccordingtosocio-economicclassicationsA/B,C,C2andD/Eorregion.Inordertoinvestigateuserproles,wesegmentedBTSusersintoourbroadcategories.Thetablebelowpresentsabriedescriptionoeachcategoryaccordingtosignicantsocio-economicanddemographiccharacteristics.
ThendingsrevealthatBTSisnotaveryregularlyusedserviceormostusersthelightuserscategory,whichmakesup58%otheBTSuserbase,onlysendsandreceivesairtimeonceinathree-monthperiodandevenheavyusersonlysend7timesandreceive0times.
Table:Thebalancetranserprocedure
Customer A
CustomerAnotiedosuccessultranserduringcall
CustomerBsentconrmationmessageincludingsenderdetailsandamounttranserred
Vodaone
Customer B
Call868,enteroption,2,3or5,0,5LE,keyinCustomerBsnumber
Sender Receiver
Table:Thebalancetranserprocedure
Customer A
CustomerAnotiedosuccessultranserduringcall
CustomerBsentconrmationmessageincludingsenderdetailsandamounttranserred
Vodaone
Customer B
Call868,enteroption,2,3or5,0,5LE,keyinCustomerBsnumber
Sender Receiver
Proposition one: Balance transer increases accessto mobile services
Balancetranserusersingeneralusetheirphonesmorethannon-users,makingandreceivingmorecalls,textsandmissedcalls,astable3belowshows.HeavyusersoBTSmakeandreceivemorecallsandsendandreceivemoretextsthananyotheotherBTSusergroups.
Itislikelythatheavierusersomobileservicesareattractedtobalance
transer,asitallowsthemtomaintainaccesstothenetworktowardstheendovalidityperiods.BeoreBTSwasavailable,peoplewouldotenrunoutoairtimewhilestillintheirvalidityperiod.Sincecardsarerelativelyexpensive,thiswouldmeanrationingoutairtimeuntiltheywereabletoaordanothercard,ineectlimitingtheuseotheirmobilephone.Onerespondentclaimed:Inthepast,IhadtotrytomaintainmycreditwhichIgetroma00LEcard,throughoutourmonths.SoIwastalkingoronlyoneortwominutesperday,butnowIspeakasmuchasIwant,bypaying0LEor5.
Thereore,BTSisassociatedwithheaviermobileusage.Evidenceromoursurveysupportsthis.WeaskedBTSuserswhethertheythoughtthatusingBTSmeantthattheyusedtheirmobilephonesmore.Themajority55%saidthatitdid,withonly2%disagreeing.Heavyusersandreceiversweremorelikelytoagree,with69%and73%respectivelysayingthatBTSmeanttheyusedtheirmobilesmore.
Balance transer users spend more on their mobilesItisnotsurprisingthatBTSusersspendmoreontheirmobilephones,giventhattheyusethemmore.Intermsooverallspendonrechargecardsoverthelastthreemonths,BTSusers(99LE/US$34.66)spentalittlemorethannon-users(78LE/US$30.9).However,whentheBTSusergroupissegmentedaccordingtoourtypology,wecanseethatheavyusers(230LE/US$40.06)andsenders(223LE/US$38.84)spendsignicantlymoreonrechargecardsthennon-users(seetable4onpage7).SomeotheairtimethatsenderspurchaseviarechargecardsislatersenttoothersusingBTS,ineectredistributingsomeothatairtimearoundthemobilenetwork.Heavyusersalsotranseralototheairtimetheybuy,butreceivesubstantialamountsoairtimeusingBTS.
Table3:MobileusagehabitsamongstBTSusersandnon-users
BTS Non- Heavy Rece- LightAverage times/week user user user Sender iver user
Giveamissedcall 22.3 6. 22.3 22.6 26.6 20.8
Receiveamissedcall 23.4 7.3 2.8 23.4 27.6 22.
Callsomeonetotalk 4.2 3.8 7.6 7. 3.7 3.2
Receiveacalltotalk 8.8 8.5 22.7 2. 9.4 7.4
Sendatext 8.4 4.5 2.3 9.3 9 7.4
Receiveatext 8.9 5.7 .8 8.8 9.3 8.2
Table3:MobileusagehabitsamongstBTSusersandnon-users
BTS Non- Heavy Rece- LightAverage times/week user user user Sender iver user
Giveamissedcall 22.3 6. 22.3 22.6 26.6 20.8
Receiveamissedcall 23.4 7.3 2.8 23.4 27.6 22.
Callsomeonetotalk 4.2 3.8 7.6 7. 3.7 3.2
Receiveacalltotalk 8.8 8.5 22.7 2. 9.4 7.4
Sendatext 8.4 4.5 2.3 9.3 9 7.4
Receiveatext 8.9 5.7 .8 8.8 9.3 8.2
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgyptcontinued
Table2:CharacteristicsoourbroadBTSusersegments
Category Heavy users Senders Receivers Light users
Percentageototal 0% 2% 20% 58%sampleN=700 (68people) (86people) (39people) (407people)
Timessentorreceived Sentairtime:7 Sentairtime:7 Sentairtime: Sentairtime:airtime(averagein Receivedairtime:0 Receivedairtime: Receivedairtime:9 Receivedairtime:previous3months)
Genderdierence Morewomen Moremen
Distributionacross Morebetween3-2, Fewerbetween3-2, Slightlymore3-2 Morepeopleagedover30agegroups ewer45andover more45andover andewerover30
Socio-economicclassication MoreSECC MoreSECA/B MoreSECD/E SlightlymoreSECC2
Occupation Moreull-timeworkers Fewerstudents,more andslightlymorestudents housewivesandretirees Morepart-timeworkers
6Source:VodaoneEgypt.7Respondentswereselectedrandomlyrommobilephonenumberlists.UsersweredenedaspeoplehavingusedBTSwithinthelastsixmonths.
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BTS enables remote airtime top-upsRemotetranseroairtimetoriendsandamilyisanimportantwayomakingsurethattheycanstayintouch.Examplesincludeemergencysituationsorwhereapersonisunabletophysicallyaccessshopsthatsellrechargecards.Forinstance,someonewhoworkedonashipandcouldntbuyrechargecardsreceivedairtimeromriendsusingBTSandcouldstayintouch.WeheardomanyanecdotalexampleswhereBTSwasusedtosendtop-upsinanemergency.
Airtimeisalsosharedremotelywithincloseamilyandriendgroups.Weheardanexamplewheretheuseracednancialdicultiesandwasregularlysent
airtimebyhissisterwholivedinanothertown.BTSprovidestheabilitytoobtainairtimeromamilyandriendsorthroughcommercialdealersandresellers(exploredlaterinthispaper)andthusmaintainaccesstomobileservices.
Proposition two: Balance transer usage increasesthe aordability o mobiles
Mobiles are a vital but costly toolAlthoughourocusgroupparticipantsgaveusastrongmessagethatmobilephoneswereanessentialtoolorliving,inourquantitativesurveywecanseethatpeopledonotthinkthattheyaregettingmorethantheypayor.Mobilesareseenasavitalbutcostlytool.
Overall,aroundhalooursurveyrespondentseitheragreedorstronglyagreedwiththestatementIspendtoomuchmoneyonmymobile(50%),withslightlyewerdisagreeingorstronglydisagreeing(3%).Onanothermeasure,themajorityorespondents54%thoughtthatthebenetsandcostsomobilewereaboutthesame.Twenty-sixpercentsaidthebenetsoutweighedthecostsand20%saidthecostsoutweighedthebenets.
Making mobile use more aordableAordabilityisamajorbarriertoincreasingthetakeupomobileservicesinlow-incomemarkets,wheretheabilitytopayisseverelyrestrictedbeyondthetopsocio-economictierothepopulation.Mobileoperatorshavetakenanumberostepstoaddressthislow-incomemarket,includingoeringprepaidtariswithlowentrycosts.Low-incomecustomersotenhavesporadiccashfowandareusuallyondailyorweeklywages.Oneothemostcrucialissuesisenablingsuchcustomersnotonlytopurchaseahandsetandline,butalsotomanageairtimecosts.Ahighvaluedenominationcard,suchasthe00LE/US$7.42rechargecard,isbeyondthereachomany,andawidevarietyotechniquesareusedtomanageairtimecostsamonglow-incomeusers.The
useomissedcalls,textsandcareulmanagementotarisiscommon.
Balance transer improves aordabilityTheabilitytotop-upairtimeinsmallincrementsenableslow-incomeuserstomanagetheirairtimeconsumptioninlinewiththeirrestrictedandunpredictablecashfow.BTSenablesuserstotop-upairtimeinsmallerincrements(5LE/US$0.87)thanpossiblebyarechargecard(0LE/US$.73).SinceBTSwasintroduced,customershavebeenabletospreadthecostotheirairtimebyregularlytoppingupsmallincrementswhentheirundsallow.
Inoursurvey,usersviewedBTSasanimportanttooltomaketheirmobileusemoreaordable.Fity-sevenpercentoBTSusersthoughtthatBTSmadeusingmobilesalittle(25%)oralot(3%)moreaordable,withonly4%thinkingtheoppositeand39%thinkingitmadenodierence.Eightypercentoreceiversagroupthathasmorelow-incomeusersandreliesonBTStoobtainasignicantproportionototalairtimethoughtBTSimproves
aordability,indicatingthatBTSplaysavaluableroleinenablingaccesstomobileservicesorsomelower-incomeusers.
Manyuserspurchaseairtimeusingbalancetranserromresellersanddealers.Althoughsomeuserswillpurchaseairtimeromriendsandamilyinexchangeorcash,themainsourceopurchasedairtimeisthediusenetworkosmall-scaledealersandresellersthatoerairtimeviaBTSwithasmallprotmargin.
Fity-sevenpercentoheavyusersand68%oheavyreceivershaveboughtairtimeusingBTSromaphoneshop
Resellers8areusedbyewerpeople(23%oheavyusersand28%oheavyreceivers),indicatingthatdealersdominatethecommercialBTSmarket
Low-incomeBTSusers(SECD/E)havedonethismore(5%)thanmoreafuentconsumers(33%oSECA/B).
Remotetop-upusingBTSalsotookplacecommercially.WeoundmanyBTSuserscallingtheirlocalmobilephoneshoportrustedresellerandaskingoratranseroairtime,promisingtovisitlatertopay.Almosthaloheavyusersandreceivershaddonethisatsomepoint,andaroundathothesamegroupsdidthisotenorveryoten.
Proposition three: Balance transer createscommercial opportunities or users.
Inaseriesoin-depthinterviewswithdealers,BTSemergedasauseulsourceorevenuebutwasnotsignicantcomparedtothemainrevenueearnersrechargecards,linesandhandsets.
Intheocusgroupsandthroughsubsequentin-depthinterviews,weidentied
severalmicroentrepreneurswhohavebuiltviablebusinessesonBTS.Theseairtimeresellersoperateaninormalserviceasasourceosupplementaryincome,andtranserairtimeusingBTSatasmallprot.Thequantitativesurveyoundasmallbutsignicantnumberoinormalresellers.Peoplewhosaidthattheyhadsoldairtimeataprotmadeup.4%oBTSusers,or0people.Thismayappearinsignicant,butiextrapolatedtotheBTSuserpopulationasawhole,couldmeanapproximately40,000to50,000inormalresellersthatareactivelysellingairtimeatprottosomedegree.
Thereissignicantvariationinthiscategory,whichcouldincludeindividualswhohaveoccasionallysoldairtimetoacquaintancesonanad-hocbasisanddonotpursueitasabusinessopportunity.However,aewindividualshavestartedtooerBTSasacommercialserviceonaregularbasis.Theaverageamountoprotwas35LE/US$6.09inonemonth,equatingtoeitheraloworverylowproportionototalmonthlyincome.However,signicantlyhigherguresabove200LE/US$34.84emergedinourin-depthinterviews.
Thedataisunreliable,especiallysincemanywerereluctanttorevealguresoraninormalgreymarketactivity,butitisclearthatsomeresellershavebuiltlivelihoodsonBTS.
Table5:AgreementwiththestatementBTSmakesusingmobilephonesmoreaordableTable5:AgreementwiththestatementBTSmakesusingmobilephonesmoreaordable
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgyptcontinued
Table4:AveragespendonairtimerechargecardsandBTSsent/receivedinthreemonths
Category Average spend on Average amount o Average amount orecharge cards (LE) airtime received (LE) airtime sent (LE)
Heavyusers(68) 230 44 33
Senders(86) 223 6 3
Receivers(39) 73 39 9
Lightusers(407) 68 8 9Non-users(300) 78 - -
8AresellerisdenedasanindividualthatsellsairtimeusingtheBTSserviceata protandwhoisnotlinkedwithamobiledealerorphoneshop.Thisexcludestransersmadeatacevalue,evenitheairtimeissold.
A lot more affordable A little more affordable No difference
A little less affordable A lot less affordable
Heavy user
Sender
Receiver
Light user
46% 27% 25% 2%2%
38% 21% 39% 1%
45% 35% 16% 2%2%
23% 23% 49%3%
3%
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Itisverydiculttoaggregateresultsandquantiywhatproportionothetotalbalancetranserredisromresellerstocustomers.Aswementionedearlier,commercialbalancetranserseemstobedominatedbysmall-scaledealersratherthanresellers.However,ourin-depthinterviewsrevealthattheresellerbusinessmodelhasstrongpotentialtoprovidepro-poorlivelihoods;itissuitedtooperatinginbase-o-the-pyramidmarketsduetolowentrybarriersintheormoacceptablestart-upcosts,beingeasytouseandthefexibilitytointegrateintodierentliestyles.Potentially,anyonewhohasamobilephone
canbecomeasuccessulreseller.Oursurveyidentiedonehousewiewhowasmakingaprotromsellingairtime.Resellersobtainairtimeeitherbypurchasingarechargecardatretailpricesandthusincurringadministration,salestaxandotherchargesortoalesserextent,throughvaliditytransactions. 9Atthemoment,resellersarepayingtheadditionalcostswithintherechargecardsystemastheyareessentiallyretailcustomersratherthanairtimedistributors.Thisincreasestheircostsandunderminesthepro-poorbenetsotheirbusinessmodelastheyhavetochargehighermark-upstostayprotable.Mostwillbeorcedtochargeupwardso6.50to7LEor5LEoairtime.0Itheywerebroughtintotheocialairtimedistributionnetwork,thiswouldsignicantlyimproveboththeirbottomlineaswellastheaordabilityoairtimeincrementstotheirendcustomers.
Proposition our: Balance transer use supports
social networksEgyptianmobilephoneusersthinkotheirmobilesasinvaluablesocialtools.Inoursurvey,overall76%oBTSusersand77%onon-userseltthatusingmobilephonesstrengthenedtheirrelationshipswithamilyandriends,withonly6%ousersand4%onon-usersthinkingtheopposite.
BTS strengthens relationships within existing social networksAlthoughrespondentsinoursurveywerelessemphaticaboutthesocialroleobalancetranserthantheywereaboutmobilephonesingeneral,theystillsawtheserviceasatooltostrengthenrelationships.Overall49%oBTSusersthoughtthatusingtheservicestrengthenedrelationships,withanother50%thinkingthatitmadenodierence.BTSalsoallowspeopletosendlow-valuegits,orbirthdaysorduringestivals.Overall29%oBTSusershaddonethis,and4%saidtheydiditotenorveryoten.
BTSusersmostlyexchangeairtimewithintheirexistingsocialnetworks,closeriendsinparticular.Forexample,astable6shows,5%oBTSuserssendairtimetocloseriendsmostand4%receiveairtimeromcloseriendsmost.
51%
42%
28%
1%
16%
11%
11%
14%10%
12%
5%
10%
8%
4%
4%
7%
2%
2%
Receive from most
Send to most
Close friends
Children
Sisters
Brothers
Cousins andother family
Spouse
Parents
StrangersColleagues
BTS USER
Table6:WhoBTSuserssendandreceiveairtimewithmost.
51%
42%
28%
1%
16%
11%
11%
14%10%
12%
5%
10%
8%
4%
4%
7%
2%
2%
Receive from most
Send to most
Close friends
Children
Sisters
Brothers
Cousins andother family
Spouse
Parents
StrangersColleagues
BTS USER
Table6:WhoBTSuserssendandreceiveairtimewithmost.
Thereisvariationbetweenthedierentusergroupsandaccordingtosocio-economicanddemographicprole.
Womensendandreceivemorewiththeirsistersandparents
Olderagegroupssendandreceivemorewiththeirchildren,andyoungeragegroupsmorewithcloseriends
Peopleromhighersocio-economicgroupssendandreceivemorewith
theirparentsandcloseriendsLowersocio-economicgroupsreceivemoreromstrangersinrealityphoneshopdealersandairtimeresellers.
Mobiles are valued by womenWomenvaluemobilephonesorincreasingreedom(52%othewomensurveyedsaidthatmobilesgavethemmorereedomwithonly5%sayingtheopposite).TherewasacontrastbetweenemaleBTSusers(56%agreeing)andnon-users(33%agreeing).Inocusgroupswithyoungerwomen,weoundthattheyareadeptatnavigatingtraditionalgenderrolestoobtainreeairtime;askingorairtimerommaleriendsratherthanemaleriends,knowingthattheirmaleriendswereunlikelytowantanythingbackinreturn.
Especiallyoryoungpeople,theexchangeoairtime,alongwithexchangeomissedcallsandothermobile-basedbehaviour,hasbeenabsorbedintonormalsocialinteraction.Mobilesormuchotheyouthareapartoyouth
cultureandbalancetranserisanessentialpartothat.
Tosendsomeoneairtimetoavalueo5,0or5LErequiresacertainamountotrustthattheairtimeoritsequivalentmoneyperhaps,oraavourwillbereturnedatsomepointintheuture.Sendingandreceivingairtimerearmsthattrust.Arespondentsaid:SayInowsenthimthe5LEandhesinneedoitbecauseheisbrokeandcantevenbuyarechargingcard,thenIcansendhimandhereturnsitbackwheneverpossible,noproblem.
Proposition fve: Balance transer is not used as aproxy currency
Thereareseveralemerginginitiativeswheremobilesarebeingusedasachanneltodelivernancialservices.Theoretically,aperson-to-personbalancetransersystemoersaplatormorconductingnancialtransactions,eveniithasnotbeenexplicitlydesignedtodoso.Airtimehasthepotentialtobecomeaproxyorvirtualcurrency;itsharesthesamecharacteristicsasmoneymediumoexchange,storeovalueandunitoaccountandtheabilitytotranseritelectronicallymakesitaviablepaymentmechanism.2Anecdotalevidenceromotherregionssuggeststhatinormalad-hoctransactionsusingairtimeasaormoelectronicmoneyarecommoninKenya(usingtheSambazaairtimetranserservice)andSouthArica(usingtheMe2Uservice).3
Inourocusgroups,wedidencountersomeisolatedinstanceswhereparticipantshadusedairtimeinexchangeorgoodsorservices.Butthisseemedtobetakingplaceonlyinspeciccircumstanceswhenthevendorwantedairtimetouse:theairtimewasnotactuallytreatedasacurrencyorasbarter.
Wetestedthisinourquantitativesurvey,askingrespondentswhetherthey
hadeverboughtsomethingusingairtime.Mosthadnot,but%olightusers(ourpeople)and4%oreceivers(sixpeople)saidtheyhad.Onlyonepersonsaidthattheydidthisotenorveryoten.
Cost barriers to using airtime as a proxy currencyWehadexpectedtondmoreusageoairtimeormobilepaymentsasEgypthasmanycharacteristicswhichwouldmakesuchanactivityvaluable,particularlyorlongerdistancetransers.Thereareewalternativesthatcantransercashaseciently,saelyorcheaplybecauseothehighuseocashortransactions,verylimitedpresenceoelectronicpaymentsystemsandlowlevelsobankpenetration,combinedwithincreasingmobileownership.
ThereareseveralbarriersthatneedtobeaddressedbeoretheBTScanactasachannelormobilepayments.Themostimportantcostbarrieristhecurrentpricestructureswithinairtimedistribution.Atpresent,thereisasignicant
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgyptcontinued
9Avaliditytransactionentailssplittingarechargecardintoairtimeandvalidityportionsa100LEcardwillnormallyprovide90LEoairtimeandoursmonthsovalidityandthensellingonlythevaliditywhileretainingtheairtime.Acustomerwillbuya100LEcardromtheresellerandthentranserbackmostotheairtime,evenalloit,andretainthevalidity.Thecustomerwilltypicallypay30LEortheservice,whichcoversallchargesandtaxesandprovides5to10LEprotortheresellerinadditiontoairtimeatalowercostthanthroughbuyingrechargecards.Theresellergetsairtimewithoutincurringanyextracharges.
10Resellerprotmarginswereestimatedwitharangeovariables.Seeullstudyormoredetails.11SeepaperbyWorldResourcesInstituteinthispublicationoranoverviewocurrentexamples.12Porteous,David(2006)TheenablingenvironmentormobilebankinginArica,DFID.13Ibid.
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discountincashcomparedtoairtimebecauseoadministrationcharges,taxesandcommissionpayments.90LEoairtimeloadedontoaphonecosts5LEatertaxesandcharges.Iauserwantstoexchangethisairtimeorcash,the25LEdierenceinvaluewillneedtobeabsorbedbytheuser.Thismakesituneconomicorhighvaluetransactionsororregularuse.
Cultural barriers to adoptionThislowusageoairtimeasaproxycurrencymayinpartbeduetoa
perceptionoairtimeasmoreoasocialresourcethananeconomicone,particularlyorhigherincomeusers.Oncetheairtimehasbeenbought,itcanberedistributed,butnormallyinreturnormoreairtime,tobereceivedlater,orasagit.Veryrarelyisairtimecashedin.Inoursurvey,only4%oBTSusershadeversentairtimeinreturnorcash(notataprot)andonlyaewmore(7%)hadeveraskedsomeoneelsetosendthemairtimeinreturnorcash(again,notataprot).
Theconceptooeringairtimeinsteadocashtobuysomethingmightimplythatthebuyerdidnthavethecashtopay,leadingtoanegativeconnotationandalossoace.Thisissuewasraisedrepeatedlyinourocusgroupdiscussions,withsomereerencestohowsuchpaymentswerenotappropriateinEgypt.Essentiallythisisasignicant,butaddressable,barrierthroughawarenessraisingandmarketingoairtimeasaproxycurrency.Focusgroupparticipantsweremorepositiveaboutusingairtimeasaproxycurrencyiitwaswithinaormalisedandwell-marketedramework.
TherewasalsoappreciationothesecuritybenetsohavingvirtualmoneythatcouldnotbestoleniprotectedthroughaPINsystem.
Attitudes to mobile banking servicesAlthoughitwasnottheprimaryocusoourresearch,wedidexplorethepotentialousingmobilesasabankingchannelinourocusgroups.
Mobilebankingmetwithalukewarmresponseinsomeotheocusgroups.Thekeyissuesseemtobeamistrustoincludingathirdpartyintherelationshipbetweenthecustomerandthebankandconcernsoverthesecurityothesystem.However,therewaspositivediscussionotime-savingpotentialandincreasedsecurity.
Options to enhance the positive socio-economic
impacts o BTSWenowsketchoutsomepotentialwaysinwhichtheBTScanenhancethesocialandeconomicbenetsomobilephonesinEgypt.Thesearebroadrecommendationsandneedtobedevelopedurtherwithregardstoeasibility,marketviability,regulatoryissuesandsoorth.
Using BTS to improve the aordability o mobile servicesAtthemomentBTSisnotociallyusedasanairtimedistributionchannelbyVodaoneEgypt.AllcommercialsaleoairtimeviaBTSbydealersandresellersisnotwithintheormaldistributionnetwork,whichisentirelybasedonprintedrechargecards.However,thexedcostsassociatedwithprintinganddistribution,currently0.55LE/US$0.09inEgypt,makeituneconomictooerverylowvaluetop-upsthroughrechargecards.BTSisalreadyoperatingasaperson-to-personormoe-rell.Extendingittoallowvendorstoelectronicallysellairtimeinverysmallincrementstocustomersasan
alternativetocardswillimproveaordabilityandormalisetheexistingdealerandresellercommercialbalancetransermarket.BTScanurtherimproveaordabilityismallerincrementsbelow5LEareallowedandvaliditytransersarepossible.4
BTS is a viable means to distribute airtime but must be able to operate oncommercial scales.AwiderangeomobilesubscribersareusingBTSasaormoe-topup,indicatingthattheEgyptianmobilemarketwillbecomortablemovingtoane-rellairtimesystemintheuture.However,orthedealersandresellersthatoerBTS,theserviceistooslowandcumbersome,andotenailsduringheavynetworktrac.InordertodevelopBTSasaplatormorbuildingurthervalue-addedservicesorasasignicantchannelordistributingairtime,itneedstooerdierentwaystoconducttransactions,perhapsbyaddingastreamlinedSMS-basedsystemtotheexistingserviceoradedicatedcommercialservice.Otherwisedistributorswillpreertouserechargecards.
Dealers and resellers have existing trust-based relationships withcustomers that can help introduce new value-added mobile services.Mostresellersservespecicsmallneighbourhoodclienteles,withmarketingthroughwordomouthandarosteroregularcustomers.Resellersbuilduptrustwithcustomersandareabletooerserviceslikeremotetop-uporairtimeoncreditthatdependonacertaindegreeotrusttowork.Resellerscanpotentiallybecomeinvolvedinawidernetworkomobile-enabledserviceslikem-paymentsormobilebanking.
Enhancing commercial opportunitiesBTSoersahighlyadaptablebusinessmodelthatistoroperatinginbaseothepyramidconditions.Itoersbenetsbothtomicroentrepreneurs,intheormoincreasedincome,aswellastotheircustomers,byenablingthemtopurchasesmalldenominationtop-ups.Bothaccessandaordabilityareurtherincreasedbyanexistingtrustrelationshipthatallowsremotetop-upsandtheprovisionoairtimeoncredit.
Bring resellers into the ofcial airtime distribution network.Keepingresellersoutsidetheocialdistributionnetworkcompromisestheirpro-poorpotential.ResellersareunabletoearnenoughrevenueandhavetoonlyuseBTSasasourceosupplementaryincomewhilecustomersarepayinghigherpricestomaintainthinresellermargins.
Iexistingresellers,andotherpotentialnewentrants,werebroughtintothe
distributionnetwork,theywouldbeabletoobtainanddistributeairtimemuchmoreeciently.Bycuttingouttheretailmargins,theycouldpurchaseairtimeatwholesalepricesandbeabletodistributethemorlowermark-ups,improvingaordabilityortheirend-customers.SMARTinthePhilippinesollowsthismodeloritsSMS-basede-rellsystem,withanetworkoover800,000resellerswhoearna5%commissionromairtimesales.Competitor,GlobeTelecoms700,000strongdistributionnetworkwillsoonalsoearnincomeromactingasagentsoritsG-Cashe-moneyservice. 5
Thisalsosignicantlyincreasestheavailabilityoairtimeinmoreremoteareas;comparethePhilippineswithapopulationo89millionandservedby.5millionretailersoairtimewithEgypt,whichhasabout0,000ocialairtimeretailoutletsorits72millionpeople.
The pro-poor benefts o BTS can be enhanced through targetedinitiatives.OperatorssuchasVodaonecantargetspecicresellermarketsasawaytodistributeairtimewhileprovidingpro-poorincomegenerationopportunities.Thiscanincludeprovidingdiscountedairtimetospecicgroupslikeruralwomensco-operativesorunemployedyouthineconomicallydeprivedareas.
Using BTS to acilitate fnancial transactions and delivery o mobilebanking servicesAlthoughBTShasexpandedrapidlyinEgypt,wewereunabletondmanyinstancesoairtimebeingusedasaproxycurrencytobuygoodsandservices.Thismaybeduetoalackoawareness,astheoperatorhasnotmarketedairtimeinthisway.However,costbarriersalsoplayastrongpart:therelativelylowamountsoairtimethatcanbetranserredandthesignicantdierenceinairtimeaceandcashvalueundermineitsviabilityorregularusage,particularlyorhighervaluetransactions.
Cultural interpretations o mobile payments, mobile banking and othervalue-added services must be more careully researched.Inourocusgroups,theideaointroducingmobilepaymentsandmobilebankingwasmetwitharangeoresponses.Mostcrucially,thereisasensethatoeringtopayviaairtimeratherthancashgivestheimpressionthattheuserispoor,andisorcedtouseairtime.InordertosucceedinEgypt,m-paymentswillneedtomanagethisissuethroughmarketingcampaignsandensuringthatthesystemisrolledoutwidely.CashalsoseemstohavemorerespectthanvirtualpaymentsinEgyptiansociety.AlthoughusersarehappytoparticipateinBTStransactions,perhapsevenremotely,implyingasignicantdegreeotrustinboththetechnologyaswellasthedistributor,therearemorereservationsaroundsecuritywhenitcomestom-commercetransactions.
There may be potential to introduce mobile banking services ormicrofnance clients.Egypthasanascentmicronanceindustrywithlargeunullleddemandornancialservices.Roughestimatesindicatethatthe
Egyptianmicronanceindustrycouldpotentiallyhavebetweentwoandthreemillionclients,owhichapproximatelyonly220,000arecurrentlybeingserved.6MobilebankingcouldplayaroleinhelpingEgyptianmicronance
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgyptcontinued
14TheBTSserviceenhancementsromAugust2006includefexibleamountsbetween1-50LEandvaliditytranserat1LEperday.15SeeWorldResourcesInstitutepaperonpage11ormoredetails.16UnitedNationsDevelopmentCapitalFund.http://www.uncd.org/english/countries/egypt/index.php
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institutionsincreasetheiroutreachandsignicantlyscaleuptheiroperations,perhapsusingasimilarmodeltoM-PESAinKenyaorpartneringwithsomeothepioneeringcommercialbanksinEgypt,suchastheNationalBankoEgypt,thatareprovidingmicronanceservices.
Remittance services rom key markets may have strong potential.Egypthasasignicantremittanceeconomyaround3.9%oGrossNationalIncomeisromoverseasworkers7andthereareconsiderabledomesticremittances
romurbanworkerstoruralareas.IelectronicmoneyserviceswereintroducedontotheBTSplatorm,allowinginternationalremittancesmightthenenablecheaper,asterandmoreaccessiblecashtransersalongwithsubsequentsocialandeconomicbenets.
ConclusionsBTShasbecomeintegratedintomobileusagehabitsorasmallbutsignicantsegmentoEgyptianusers,andisusedmoreoccasionallybyawiderrange.Itisprimarilyusedasasocialresourcetoshareairtimewithinexistingamilyandriendshipnetworks,beingusedinwaysthatalignwithdominantculturalbehaviourssuchasgenderrelationships.
BTSalsoplaysanimportanteconomicroleinincreasingtheaordabilityomobileservices.Ineectitenablesaninormalairtimerechargesystemthroughwhichuserscanpurchasesmallincrementsoairtimecommerciallyromdealersandinormalresellers.
ThismeansthatBTSalsoprovidessomecommercialopportunitiesorairtimeresellers.BTSoersaviablebusinessmodelorbase-o-the-pyramidconditionsandcanpotentiallydeliverbenetsormicroentrepreneurs,theirlow-incomecustomersandoperatorslikeVodaoneEgypt.
Thepositivesocio-economicimpactsoBTScanbeincreasedthroughtargetedinitiatives,buttheymustrefectlocalculturalandoperatingcontexts.Thisresearchaddstothebodyoevidencethatshowslow-incomeconsumersassophisticatedusersoservicesandhowtechnologiesareutilisedinuniquelocalways.
This is an abridged version o a uller report which includes case studiesand more data rom the survey. Please visit www.orumortheuture.org.ukto download a copy.
AsenseobalanceAsocio-economicanalysisoairtimetranserservicesinEgyptcontinued
17WorldDevelopmentIndicators2006,WorldBank.
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William J. KramerWorld Resources Institute
WilliamJ.KramerisDeputyDirectorotheDevelopmentThroughEnterpriseprogramme.Hiswork
inavaried30-yearbook-centredbusinesscareer,duringwhichhecreatedKramerbooks&aterwords,therstbookstore/cae,ledhimtoestablishanon-protorganisationexploringtherelationshipbetweennewknowledgeandeconomicdevelopment.AtWorldResourcesInstitutehisworkalsoincludesthedevelopmentoeducationandtrainingmaterials,andleadingintensivelearningseminars.HehastaughtacourseonsustainabledevelopmentattheUniversityoMarylandGraduateSchooloPublicAairs,andlecturedatnumerousuniversitiesandcollegesonthebaseotheeconomicpyramid(BOP)issues.
John PaulWorld Resources Institute
Johnhasworkedonissuessurroundingtheintersectionotheprivatesectoranddevelopment.For
veyearsatWRI,heresearchedandwroteextensivelyaboutthewaysinormationandcommunicationtechnologiescanimpactdevelopment.Hehasworkedasadeveloper,moderatorandcontributortoNextbillion.net,andhasbeenaconsultantortheUSAIDLastMileInitiative.JohnalsospentayearlivinginIndia,workingorn-LogueCommunications,aprivatesectorcompanythatworkswithindependententrepreneurstoestablishinternetkiosksinruralvillages.JohnhasperormedeldresearchinNepalandKenya,andwrittentwoull-lengthcasestudiesbasedonresearchconductedinIndiaandNepal.AgraduateoCarnegieMellonUniversity,(BS,MechanicalEngineering),heiscurrentlyanMBAstudentatCornellUniversityJohnsonSchooloManagement.
Mobile-enabledtransactionsorthebaseotheeconomicpyramid:Abriereviewothe2006state-o-play
IntroductionIntheeorttocreateullyinclusivenancialsystemswhichreachallsocio-economicstrata,includingthebaseotheeconomicpyramid(theBOP),inormationandcommunicationstechnologies(ICTs)areincreasinglybeingdeployed.ICTs,andinparticular,mobilephones,areprovidingameansby
whichtoprocessnumeroussmalltransactionsecientlyandaordably,thusenablingalargerprivatesectorroleinservicedelivery.Hardwarecostsandnetworktransmissioncostsarebothallingrapidly.Newtechnologies,suchasWi--enabledcellphones,Wi-max,voice-over-internet(VoIP),andlow-power/high-qualityservers,showpromisetodelivermobiletelephonyandwide-bandcapabilitytoincreasinglyremotemarkets.
Inthisbriereviewothestate-o-playasomid-2006,weexplorearangeotechnologies,enterprises,andbusinessmodelsthatdelivernancialservicesacrosscommunicationsnetworks,andinparticular,mobilephonenetworks,withaocusontheirapplicationtoBOPmarkets.Weprovideafavourotheenterpriseandproductset,touchlightlyonthedevelopmentotheproductand/orserviceandexplorewhatbusinessmodelsareworkingandhighlightpromisingpilotsandullcommercialroll-outs.Wherepossible,webriefyanalysewhethertheproduct/servicesrespondtomaniestBOPneeds,andpointtopositivesocialandeconomicimpacts.Finally,weoersome
observationsabouthowtomakenewproductsandservicesdirectedtowardtheBOPsuccessul,bothorthecompaniesandorthecustomers.
Deployment o servicesMobiletelephonesarecurrentlybeingusedinavarietyowaystodelivernancialservices.AsdenedbyourcolleaguesatCGAP,theseservicesall
generallyintothreecategories:mobile-purchasing(m-commerce),electronic-money(e-money),andelectronicbanking(e-banking).2
M-commerce.Largelydeployedtodayintheadvancedindustrialcountries,particularlyJapanandtheNordiccountries,itislimited,orthemostpart,tosmallpurchases,suchaspublictransportationandvendingmachines.Inthesetypesopaymentsystems,themobilephoneisordinarilyreplacingadebitorcreditcard.Asitisatpresentatop-o-the-marketapplicationprimarily,wewilltouchonitonlylightlyinthisreview.
E-money.Allowsstorageocashvaluesonmobiles,eitherthrougharealvaluesystemoravirtualvalueequivalentinairtimecredit.Itisgrowingrapidlyoutoprepaidtext-messagemobilephonecardsystems.Inthisreport,weocusonthePhilippinesexperience.
Banking channel.Mobilephonesareincreasinglyutilisedasplatorms
ortransactingbusinesswithnancialinstitutions,andoraccessingbankaccounts,whetherchecking,savings,orloan.Balancesinaccountscanbeaccessedoranumberopurposes:purelyinormational,makingpaymentsonbankloans,transerringmoneyromoneaccounttoanother,selectivebill-paying(e.g.,toutilitycompaniesandretailstores).Thee-moneyandbankingchannelscrosspathsrequently,asinthecaseomobilephone-basedrepaymento,ordepositsto,micronanceinstitutionloans.TheAricanexamplesM-PESA,WIZZITandothersoermultipleperspectivesorthesetypesoservicesandproducts.Weincludeinthiscategorynewsystemsevolvingorthetranseroremittancesromonecountrytoanother,suchastheExchangeWallet.
Micropayments are the key; technology is the enablerAsignicantelementinthesuccess(orailure)oanyproductsisthecapacitytohandlelargenumbersosmalltransactionsecientlyandprotably.Acrossthethreecategoriesoservicesdescribedabove,onendsthreemajortypesopaymentsystems:credit-based,account-based,andstoredvalue.Credit-basedsystems,deriverom,andrelyon,thematuresystemotraditionalcreditcards:buy-then-pay.Thesecond,account-based,employthesomewhatmorerecentsystemodebitcards,whichdirectundstobemovedromonedepositoryaccounttoanother:pay-then-buy.Debitcards,likecreditcards,requireconnectionto,andapprovalrom,acentralnetworkwhichcanauthenticatethetransaction.Stored-valueisanevenmorerecentinnovation,andunctionsmuchlikecurrency.Cashisloadedontoanelectronicwalletacard,usuallyandallowsortranserotheappropriateamountwithouturtherapproval.Itoundearlyandwidespreadapplicationintransitpaymentsystemsandthegitcardindustry.
Telephonecompaniesarehistoricallywell-suitedbythenatureotheirenterprisetounderstandthenatureomicropayments.Theevidenceisalreadycompellingthattheyarerespondinginnovativelytothebusiness
opportunitiespresentedbymicropayments.HandsetproducersandnetworkmanuacturersareincreasinglyawareothepotentialotheBOPmarket,andareactivelydevelopingandmarketingBOP-targetedgoodsandservices.TheEmergingMarketHandsetProgramattheGSMAssociationisagoodcaseinpoint.IttookonlyaboutayearrominceptiontomarketdeliveryorstproductstheMotorolaC3andC3ahandsets.
Atthesametime,boththetelecomandnancialserviceindustriesarerespondingpositivelytoinnovationandenergythatiscomingromoutsidetheirownclosecircles,rom,orexample,technologyentrepreneurs,whoareseizingonthecapabilitiesoast-evolvingchipsetsandapplyingthemtonewunctions.Alongtheway,allthestakeholdersarerevolutionisingaccesstonancialservicesortheBOP.
Toconclude,itisworthnotingthatthenumberomobilesubscribersindevelopingcountriesgrewmorethanve-oldbetween2000and2005,
reachingmorethan.4billion.Theestimateoworldwidesubscriberstodayisjustover2billion;developingcountriesaccountsor70%otheglobalmarket.3Theestimateisthattherewillbe3billionmobilephoneusersby
1Foradiscussionolow-costruraltelephonysystems,seehttp://www.nextbillion.net/blogs/2006/05/09/a-new-model-or-rural-connectivity2MobilePhonesorMicronance,CGAPBrie,April2006.3www.itu.int/ITU-D/ict/statistics/at_glance/cellular05.pd
Authors
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200.Theindustryhasmuchothegrowthcurveaheadoit,andasunctionalityincreases,thesizeothemarketisurtherenlarged. 4Industryanalystsandexpertsagreethatthebiggestchallengesacingthisexplodingsectorarenotthetechnologies,butthebusinessmodelsusedtoservethegrowingmarketsagoodlead-in,then,toadiscussionosomeexamples(indicative,butnotexhaustive)omobilenanceinemergingmarkets.
Case studies rom emerging markets
WIZZIT, MTN Banking and FNB, South AricaInSouthArica,20-25%othepeoplewhohaveneverhadabankaccounthaveaccesstoacellphone.5FinMark,aBritish-backednon-governmentalorganisationthatlooksatwaysnancialmarketscanhelpthepoor,estimatesatleasthaloallbankaccountsinSouthAricawillbeadministeredviacellphoneswithinveyears.6ThreecompaniesWIZZIT,MTNBankingandFNBhavelaunchedmobilenancialservicesaimedatthismarket.
WIZZIT7wasrsttomarketinNovember2004.ThroughapartnershipwithSouthAricanBankoAthens,customersareabletouseSMStopayorgoods,transermoneytoriendsandamilyandtopupthecreditontheirpre-payphones.Accountholderscanalsohavetheirsalariesdepositeddirectlyintotheircellularaccounts,andcandepositcashatPostOcesandsomebankbranches.
WIZZITdoesnotrequireuserstohaveabankaccountandiscompatiblewith
earlygenerationandpay-as-you-gocellphones.AccountholdersareissuedMaestrodebitcardsthatcanbeusedatanyATMorretailer.WIZZITchargesper-transactioneesthatrangerom99c(US$0.5)toR4.99(US$0.78)anddoesnotchargeamonthlyeenorrequireaminimumbalance.
Theservicehasprovedparticularlysuccessulduetoitsunconventionalmarketing.Thecompanyemploysover2000WizzKidstypicallyunemployeduniversitygraduatesromlow-incomecommunitiestopromotetheproductintownshipsandruralcommunitiesandhelpun-bankedcustomersopenaccounts.ThecompanyislookingtoexpandintoKenya,Botswana,Namibia,ZambiaandMalawi.CustomersandmanagementoWIZZITconrm(anecdotallyatthisjuncture)thesocialimpactoseekingoutunemployedindividualsandprovidingthemmeaninguljobsthatempowerothermembersothecommunitythroughcommunicationsandaccesstonancialservices.WIZZITisontargettoreachprotabilityandtoserve00,000customersbytheendo2006.
ThroughajointventurebetweentelecomMTNandStandardBank,MTNBanking8isalsoprovidingbankingservicesthroughcellphonesinSouthArica.CustomersopenaMobileMoneyaccountoveranMTNcellphone,andalltransactionscanbedoneoutsidetheconnesoatraditionalbank.AccountholdersalsoreceiveaMobileMoneyMasterCardthatcanbeusedtomakepurchasesorwithdrawmoneyromanyATMinSouthArica.
MTNBankingmayeventuallyexpanditsservicesintoothersub-Saharancountrieswhereitalreadyoerscellphoneservices,suchasNigeria,Uganda,CameroonorRwanda.
UnlikeWIZZIT,whichworksonanynetworkwithanymodelphone,MTNBankingcustomersmusthaveacompatiblecellphonethatusestheMTNcellularnetwork.Althoughthereisnomonthlyee,thestandardR3eepertranseristoohighorsomemicrotransactions,reducingtheservicesvaluetothosewithlowerincomes.
MTNBankingisnottheMTNsonlyorayintotheBOP.InUganda,thetelecomhaspartneredwiththeGrameenFoundationandlocalmicronance9institutionstoreplicateBangladeshssuccessulvillagephoneprojectinArica.MTNsVillagePhoneproject0hasgivenmorethan2,000entrepreneursaccesstostart-upcapital($230)whichincludesacarbatteryorsolarpowerpanel,awirelesshandset,ausermanualandaxedlinededicatedSIMcardthatcanbeloadedwiththeprepaidairtime.
Finally,FirstNationalBank(FNB)
haslaunchedacellphonebankingservice,butonlyorusebyitsexistingcustomers.FNBexpectstheelectronicbankingchanneltoincreasethenumberoitsMzansientry-levelaccountsorlow-earnerswhohaveneverhadabankaccountbeore.LikeWIZZIT,theFNBprogrammehasnospecialrequirementsintermsohandsetmakeormodelorSIMcardtobeused,andtheservicecanbeusedonanycellphonenetwork.FeesarecomparabletothoseromMTN.
TherapidemergenceovirtualbankingthroughWIZZIT,MTNBankingandFNBdemonstratesagrowingbelieamongbankingandtelecomproessionalsthatthereisabigmarketintheun-banked,andthisisencouragingcompetition.Sincetheirlaunch,allthreeinitiativeshaveexceededtheirinitialsubscribergoals.Asvolumesgrow,thebanksplantodevelopnewapplicationsaimedattheunderservedmarkets.
M-PESA, Kenya
In2005,Vodaonepartneredwithitslocaltelecomaliate,Saaricom,toprovidenancialtransactionsovercellphonesinKenya.TheM-PESA2servicewaspilotedasapublic-privateventure,asapartnershipwiththeUKDepartmentorInternationalDevelopment(DID)(providingmatchingunding),theCommercialBankoArica(providinglocalbankingservicesandinteracetotheregulatorysystem),andthemicronanceorganisation,Faulu(providinglocalexpertise).
Throughthepilot,existingmicronanceclientsreceivedacellphonethroughwhichtheycouldelectronicallymakepaymentsontheirloans.Eachphonewasequippedwithaspecialsubscriberidentitymodule(SIM)card3thatallowsthetransactionstotakeplace.
Severalservicesareavailableinadditiontoloanrepayments.M-PESA usersareabletodepositorwithdrawcashromauthorisedM-PESAagents,typicallyasmallstoreownerthathasenoughcashonhandtocompletethetransactions.Clientsarealsoabletomakeperson-to-personmoneytransers,purchaseairtimeorre-saleorpersonaluse,andreceiveaccountstatements.
Pilottestingconrmedseveralimportantbenetstousers.
Time-saving and convenience:ThesystemhasreducedthetimeittakestorepaytheirFaululoans,asthetransaction,completewithconrmation,isimmediate.Clientshavealsosavedtimeandmoneybyreducingtheirvisitstobanks,andhavereceivedtheaddedconvenienceoeectivelylongerbankinghours.
Saety and security:TheM-PESAsystemreducestherequirementtocarrysignicantamountsocash,thusreducingthepotentialorloss.M-PESAwasdevelopedtobanktheun-banked.Accordingtooneclient,they[thelowincomepeople]willnolongerhavetostoretheirmoneyunderthemattress
butinM-PESAwhichisasae4
Reduction o deault rates:Astransactionscanbecompletedduringalongerbusinessday,andatmoreconvenientlocations,thesystemhasencouragedandenabledmorepromptandregularloanrepayment,anoutcomewithclearbenetstothebankinginstitutions.Asasidebenet,theregularFaululendingcirclemeetingscouldmoveawayromdiscussionsorepaymentissuestoaddressotherconcernsandissues.5
Mobile-enabledtransactionsorthebaseotheeconomicpyramid:Abriereviewothe2006state-o-playcontinued
4ThesizeandcharacteristicsoBOPmarketsisdiscussedextensivelyinTheMarketotheMajority:Poverty,ProtandUnmetHumanNeeds,WorldResourcesInstitute/InternationalFinanceCorporation,tobepublishedFebruary2007.
5http://www.kalahari.net/BK/product.asp?toolbar=none&sku=27978928&ormat=detail6http://www.nextbillion.net/newsroom/2005/11/02/cell-phones-plug-aricas-poor-into-mobile-banking7http://www.wizzit.co.za/Wizzit_index.htm.CurrentnumbersconrmedbyauthorinpersonalcommunicationwithBrianRichardson,CEO,August2006.8http://www.mtnbanking.co.za/9http://www.nextbillion.net/node/142910http://www.mtnvillagephone.co.ug/index.htm11https://www.nb.co.za/personal/transact/accessyouraccounts/cellHowDoI.html12PesameansmoneyinSwahili13CurrentcostotheSIMcardisUSD$2.14SecondPilotReview,Microsave,April2006.15Interestingly,thePilotReviewhighlightedsomeconcernsthatthemobilesystemwouldnegativelyimpactthegroupcohesionthatotencharacterisesmicronancelendingcircles.Theintroductionothisnewtechnologysuggestsare-thinkingotheruleswhichattendmicronanceloanparticipation.Intheviewotheauthorsothispaper,abroadeningotheagendaormicronanceorganisations,romanexclusiveocusonloanstowardsullnancialservicesliteracyandempowerment,willproveapowerulpositiveimpactotheseeorts.
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Thesmallpilotprovedtothesatisactionothejointventurepartnersthevalueomobile-basednancialservicestocustomersandmerchantsalike.Italsovalidatedthetechnologyortheseniorproviders,VodaoneandSaaricom,andgavethemtheopportunitytoimprovetheunderlyingplatorm.Nonetheless,usersoM-PESAhavebeenslowtoadoptotheravailableservicesbeyondloanrepayment,indicatingalingeringlackoamiliarwithandtrustothenewtechnology.6Theservice,andthephonesonwhichtheservicewasdelivered,wereprovidedreetotheclientsduring
thepilot.Fullcommercialacceptancewillbedeterminedduringtheroll-out.
Somepracticalandmarketchallengeswererevealedinthepilotprogramme,anumberowhichareapplicabletoothermobile-basedsysteminitiatives.Inthepilot,M-PESAplacedalimittothetotalamountthatcouldbewithdrawnatanyonetime,withtheresultthatclientswererequiredtoseekoutmultipleagentsorlargetransactions.Thenumberandavailabilityoagentsavailableduringthepilotwaslimitedanditslowedthesystemsadoption,althoughrecruitingnewagentsprovednottobeaproblem.ReceivingcustomerinormationandreplacinglostSIMsalsowasoundtobeaninconvenience.Thesespecicissueswereaddressedasthepartnersmovedrompilottoullroll-out.
Inacommercialmode,theprogrammeplanstotargetthe200,000-300,000usersomicronanceservicesinKenya.Itwillalsoseektobecometheplatormochoiceorthenearly$500millioninremittancesthatarereceived
annually.7PartnershipswillbekeytoM-PESAsexpansion.Thesepotentialpartnersincludebanks,SMEs,agriculturalcompanies,andotherbusinesseswheremovingtoacashlesssystemaddsvalue.Expansionintoruralareaswilloccurwherecellularcoverageisavailable.TheKenyanroll-out,nowunderway,maybeollowedbyexpansionintoTanzaniaandotherAricanmarkets.
Celpay, Democratic Republic o Congo and ZambiaAnotherSouthArican-basedcompanyisprovidingmobilecommercesolutionsdirectlytobanks.CreatedbyCelTel8in2003andpurchasedbySouthAricanFirstRandBankin2005,Celpay 9isanancialservicescompanyoperatinginboththeDemocraticRepublicoCongo(DRC)andZambia.Thecompanyprovidesmobilebankingandpaymentsolutionsorbankslookingtooeraccesstonancialtransactionservicestotheircustomers.TheservicesareaccessedthroughtheuseoGSMcellphonesandPOSdevicesusingmobileoperatorsasthedeliverychannel.
UtilisingtechnologyprovidedbythemobilebankingandtransactingsolutionscompanyFundamo20,Celpayallowsregisteredcustomerswithanexistingbankaccounttousetheircellphonesormerchanttransactions,monthlybillpayments,andundtranserbetweenparticipatingphones.
CustomersregisteringorCelpayreceiveanewsecureSIMcard,addingamenutotheircellphonesthatacilitatesthepaymentsandprovidingaccesstotheirCelpayaccounts.MoneycanbeaddedtoCelpayaccountsviatransersromabankaccount,orbydepositingcashorachequeataparticipatingCelpaypartnerbank.TransersmadeusingCelpayarereetothepayer,whilethepayeeischargedasmalleeoreachtransaction.
IntheDRC,Celpayiscurrentlypartneredwithourlargetradebanks:CommercialBankoCongo(BCDC),RawBank,theInternationalBankorAricainCongo(BIAC),andtheCongoleseUnionotheBanks(UBC).Thecompanyis
responsibleorover3milliontransactionsamonthinthecountry.2
Smart Communications and GlobalTelecoms G-Cash, PhilippinesSmartCommunicationsisthePhilippinesleadingwirelessservicesproviderwith22.5millionsubscribersonitsGSMnetworkasosummer2006. 22Thecompanylaunchedtheworldsrstelectroniccashcardlinkedtoamobilephonein2000throughapartnershipwithMasterCard.TheSmartMoneyserviceenablesuserstotransermoneyromabankaccounttoaSmartMoneyaccount.SubscriberscanthenuseaSmartMoneycardlikeadebitcardtopayoravarietyogoodsandservicesatanetworkoretailstoresandrestaurants,andtransermoneyromoneSmartMoneycardtoanotherviaSMStexting.
AlthoughSmartMoneyisbeingmarketedprimarilytothetop-o-the-pyramidbecauseitrequirestheusertohaveanexistingbankaccount,thecompanysrapidgrowthisduelargelytoitsBOP-orientedbusinessmodel.SmartBuddy,thecompanyspre-paidGSMproduct,isusedby99%oSmartssubscribers.CustomerscanactivateanaccountoraslittleasP00(US$.80),andtopupelectronicallyusingtheSMS-basedSmartLoadserviceinincrementsassmallasP30.ThelowdenominationshaveopenedupanentiresubsetotheBOPmarket,enablingSmarttoretaincustomerswhomaytemporarilybeunableto
aordhighertop-upamounts.
Smartsellsitsairtimethroughmorethan800,000smallmerchantsthatmarketpredominantlytolow-incomepopulationsincommunitiesthroughoutthePhilippines.ManySmartLoadretailersareestablishedneighbourhoodstoresthatareabletosellre-loadstopeoplelivingunderthepovertylinebyextendingtheirexistingon-creditpurchasingmodelalreadyusedorstaplesandsachets.Housewivesandstudentsactingasrovingagentsarealsoearningincomeasretailers.PasaLoadpushestheserviceurtherdownthepyramid,byallowingcustomerstotranserunitsaslowasP2tootherSmartcellphones.
Smartssensitivitytolocalbusinesspracticesatthesmall-andmicro-enterpriselevelallowedthemtocapitaliseonanexistingdistributionnetworkthattheydidnothavetocreatebythemselves.Thecompanyprovedtheviabilityotargetinglower-incomemarketsegments,encouragingurtherpricecompetition,andcatalysinganewmarketorsellingusedhandsets.
Bypayinga5%commissiononre-loadsales,Smarthasalsosignicantlyincreasedtheincomeolocalretailers.
Thecompanyplanstocontinueocusingdown-marketasitgrows.Futureplansincludeintroducinglower-costhandsets,andloweringthecostoinrastructureexpansionintoareasthatwerepreviouslyuneconomicaltoserve.Smartalreadyallowscustomerswithabankaccounttotransermoneyandmakepaymentsthroughthecellphone.IncreasedmobilebankingactivityromSmart(thecompanyalreadyhas3millionSmartMoneysubscribers)coupledwithmoreinclusionotheBOPinormalbankingchannelscouldresultinnewopportunities,particularlyintheareaoremittances.
StrongcompetitionorthecellphonebankingmarketinthePhilippinescomesromGlobeTelecomsG-Cash23service.Launchedin2004,theservicesText-a-Paymenteatureallowsuserstosendandreceivecashandmakepayments,includingbillpayments,donations,andonlinepurchases,viaSMStexting.G-Cashalsoenablesthetranserodomesticandinternationalremittances.GlobechargesafateeoPhp0oranytransactionbelowPhp,000,anda%eeoranytransactionabovethatamount.
LikeSmart,usersotheservicemustbeasubscriberothetelecomsnetwork.UnliketheSmartMoneyeature,however,usersarenotrequiredtohaveanexistingbankaccounttoregisterortheservice.
Globesreachhasrapidlyexpandedthroughitswidenetworkopartners,includinggovernmentagencies,utilitycompanies,ruralbanks,cooperatives,insurancecompanies,universities,andcommercialestablishments.AsoMarch2006,therewereapproximately.3millionG-CashregistereduserstranserringaboutUSD$00millionperday.Globeboastsavastdistributionnetworko700,000airtimeloadingretailersthroughoutthecountry,manyowhomwillsoonbeabletoprovideG-Cashtotheirclients. 24
BothSmartandGlobeareusingtheirmobilecommercesolutionstoexpandtheircustomerbase.Althoughthereareveactivemobilebrandsinthecountry,Smart(witha59%marketsharein2005)andGlobe(36%)controlmostothecellularmarketinthePhilippines.25Betweenthetwocompanies,morethan.5millionindependententrepreneursareengagedinresaleoairtimeandacilitationomobilenancialservices.Thisrepresentsasignicantemploymentsourceorthecountry.
Mobile-enabledtransactionsorthebaseotheeconomicpyramid:Abriereviewothe2006state-o-playcontinued
16SecondPilotReview,Microsave,April2006.17http://www.nextbillion.net/newsroom/2006/02/22/remittances-dwar-aid-investment-in-kenya
18http://www.celtel.com/19http://www.celpay.com/20http://www.undamo.com/21http://www.undamo.com/index.asp?pgid=4522www.smart.com.phCurrentnumbersveriedinpersonalcommunicationwithRamonIsbertoVP,SmartCommunications,August2006.23http://www.myglobe.com.ph/24http://www.chemonics.com/projects/content/GCash.pd25RobinSimpson,GlobeTelecomsG-CashaMobileCommerceSuccessStory,Gartner,March2005.
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Remote Transaction System, UgandaCellularnetworkshavealsobeenusedtoenablenancialtransactionswithoututilisingmobilephones.In2002,HewlettPackardormedapartnershipwithanumberomicronanceorganisationsandcommercialpartners26workinginrelatedareastoexplorehowtechnologycouldbeusedeectivelytohelpscalemicronance.WhatemergedromtheeortwasaRemoteTransactionSystem(RTS)27thatsupportsbothgroupandindividuallending,onlineandbatchofineprocessing,andbackocesynchronisation.
TheRTSisbasedontheuseosturdyhand-helddevicesthatcancommunicateoverGSMcellularnetworks.Combinedwiththeuseosmartcardsgivenouttoclientsandmicronanceagents,thesystemallowstocollectcrucialnancialdataintheeldandsubsequentlytotranserthedatadirectlyintotheMFIscomputerisednancialmanagementsystem.TheRTSeliminatestheneedtoprepare,transport,andenterhand-writtenreports,reducingcostsorruraloperations.
FollowingthecompletionothepilotinMay2005,theMFTdisbanded,passingalongtheintellectualpropertyrightstotheRTStoSevakSolutions. 28Thenewcharitablenon-protorganisationisnowpromotingglobaldisseminationothetechnologybyprovidingopen-sourcelicenceagreementstointerestedparties.Inaddition,SevakSolutionsiscontinuingthedevelopmentotheRTSandrelatedtechnologies,andsupportstheRTSusercommunity.
UAE Exchange WalletUAEExchangeWalletisaglobalmoneytransersystem,establishedrstintheUnitedArabEmiratestoallowIndianstowiremoneyhometoIndianbanksusingtheircellphone,andneitherthesendernorrecipientneedstovisitabank.ThesendercallsupExchangeWalletonhisphone,entersaPINnumber,indicateswhethertheundsshouldbesenttoabank,WesternUnionoceoranotherExchangeWalletcustomer,andsendsthemoneyovertheInternettoitsdestination.ThecompanyisthebrainchildoSamPitroda,apioneeringgureintheIndiantelecomindustry,andnowtheounderandChairmanoC-SAM,withocesinChicago,ILandIndia.C-samhasawideproductoeringcoveringahostobrandedandsecuremobiletransactionplatormproductsbothornancialandnon-nancialsectors.29
Business briesThissectionpresentsshortcapsulesintroducingavarietyomobile-basednancialservicesbeingintroducedaroundtheworld.Thereisverylittleinormationavailablepubliclyinprintormoronthewebaboutmostotheseinitiatives.Takentogether,however,theysuggesttherangeandvitalityoeortsinthisdomain.WeprovideURLstoinormationresourceswhereavailable.
BangladeshGrameenPhone(GP),Bangladeshstopmobileserviceprovider,recentlypartneredwithDutchBanglaBanktoprovideitsuserswithamobilebankingservice.Theserviceallowscustomerstousetextmessagesontheirmobilephonestopaytheirphonesbillbydebitingagainsttheiraccountsdirectly,checktheiraccountbalance,changetheirPINcode,andperormotherbankingunctions.GPoerstwoservices,oneavoicemail-basedsystemandtheotheranSMStext-basedsystem.
http://www.nancialexpress-bd.com/index3.asp?cnd=8/0/2006§ion_i
d=7&newsid=33770&spcl=no
http://www.grameenphone.com/modules.php?name=Content&pa=showpage&pid=58
BrazilBancodoBrasilandBrazilianwirelessoperatorVIVO,EverSystemslaunchedMobileBankinginFebruary,2006.Initialreportsindicatethatthepartnersareveryimpressedandsatisedwiththeusability,perormanceandsecurityoMobileBanking.Theresalottocelebrate!BancodoBrasilcustomersarenowabletousetheircellphonestoaccessaccountinormation,andperormcomplexnancialtransactions.ThebankreportsthattheseunctionscanbecarriedoutwithauthenticationandsecurityeaturesidenticaltothoseoInternet-basedbanking.
http://brew.qualcomm.com/brew/en/developer/resources/news/
archives/2005/nov_2005.html
ColombiaBancolombia,Colombiaslargestbank,startedamobilebankingserviceinJune2006,whichallowscustomerstomakepayments,moneytransers,andinormationrequestsbymobile.TheserviceisknownasBancoMovil.BancolombiaispartneringwithComcelandOla,twocellularphoneserviceproviderstoprovidetheservice.
AccordingtoJorgeLondooSaldarriaga,thepresidentoBancolombia,the
banksnewserviceisspecicallytargetedatthosecustomersorwould-becustomerswhodonothaveeasyaccesstophysicalbankinginrastructure:ThebankwillarriveinareaswherewedonthaveocesorATMs,butwewilltakeadvantageocellularphonetechnologywhichcoversalltheterritory.
http://www.la-republica.com.co/noticia.php?id_notiweb=6346&id_subseccion=&template=noticia&echa=2006-08-04
India ABN AmroABNAmrohasprovidedmobileservicesince2004.Theirproduct,Mpower,usesSMStexting.Customerscanaccessawidevarietyoservicesincludingbalanceandtransactioninquiries,shareholdingsindemataccounts(dematerialisedaccount,usedorpurchase/saleostocks),undstranserstoABNAMROandotherbanks,billpresentmentandpayment,chequeinquiryandstoppaymentrequests,openingonlinexeddepositaccounts,requestsorchequebooksandstatements,andrequestsornewPINnumbersandto
changePINnumbers.MpowerassignsauniquePINtothemobilephonenumberregisteredatthebankorsecuritypurposes;ithephoneisstolenandsomeonetriestoaccessthecustomersaccount,thesystemblocksalltransactionsaterveailedattemptsataccess.
http://www.epaynews.com/index.cgi?survey=&re=browse&=view&id=0832378706222522&block=
http://www.abnamro.co.in/ProductsnServices/Consumer/Services/mobile_banking.html
KenyaTheCooperativeBankoKenyaoersvebasicservicesviamobile:accountbalanceverication;purchaseand/ortranseroairtimeromtwocellproviders,SaaricomandKencell;directsalarydeposit,withSMSimmediateverication;mini-statementsothelastthreetransactions,withcurrentbalance;utilitybillpayment.Eachservicecosts30Ksh,orapproximatelyUS$0.40pertransaction,whichseemsaairlyhighbarrierorlow-incomecustomers.
http://www.co-opbank.co.ke/epayments.php?cat=6&sub=72
NigeriaInFebruary2005,GlobacompilotedamobilebankingprogrammeinNigeria.Justonemonthlater,Globacomannouncedthatitwasreadyoracommerciallaunchoitsservice.InAugust2006,pressreportsindicatethattheGloM-Bankingserviceisaveragingover200,000transactionsaday,whichindicatesstrongmarketacceptance.Mobilebankingsubscriberscancheckbankaccountbalances,viewthelastvetransactionsontheaccount,transerundsromoneaccounttotheotherinthesamebank,andrechargeaprepaidlineocredit.
AccordingtobankocialstheGlobacomserviceistherstoitskind,allowingbankcustomerstointeracewithavarietyobanks.Aso2005,theollowingbanksparticipatedintheprogramme:FirstBankNigeriaPlc,GuarantyTrustBank,ZenithBank,Aribank,OceanicBank,WemaBank,CharteredBank,PlatinumBank,PrudentBank,StandardTrustBank,UniversalTrustBank,BondBank,GulBank,NationalBank,FirstCityMonumentBank,UnitedBankoArica(UBA),ContinentalTrustBank,DiamondBank,EIBInternationalBank,EquitorialTrustBank,MagnumTrustbank,UnionBankandAcessBank.Tousetheservice,acustomermustregisteratanyotheparticipatingbanks.Oncetheserviceisactivated,thecustomerwillreceiveawelcometextmessageonhismobilephone.Fromhere,toaccesstheservice,thecustomerwillneedthePINissuedbythebank.
http://www.mobilearica.net/n40.htm
http://www.sunnewsonline.com/webpages/eatures/suntech/2006/aug/6/suntech-6-08-2006-00.htm
Mobile-enabledtransactionsorthebaseotheeconomicpyramid:Abriereviewothe2006state-o-playcontinued
26http://www.hp.com/e-inclusion/en/project/uganda2.html?jumpid=reg_R1002_USEN27http://www.nextbillion.net/les/RTS.pd28http://www.sevaksolutions.org/29http://www.c-sam.com,http://timesondia.indiatimes.com/articleshow/1051551.cms
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South KoreaWhilenotadevelopingcountry,SouthKoreahasadoptedmobilebankingwithenthusiasm.AccordingtoBusiness Week,aso2004,asmanyas58,000Koreansmadeabout4millionbanktransactionsusingtheirmobilephones.AlloSouthKoreasretailbanksnowoermobilebanking,andeverymonth,morethan300,000peoplebuynewphonesequippedwithaspecialslotwheresubscriberscanpluginatinymemorychipwiththeirbankingdataandanencryptioncodeorsecuretransactions.
Already,tensothousandsorestaurantsandstoreshaveterminalsthatreadcreditcardinormationromphonesviainraredbeams,lettingcustomersavoidthehassleoswipingcards.AndSeoulcommuterscanhavebusandsubwayaresdeductedromtheiraccountsbyfashingtheirphonesastheypasstheturnstiles.
Carriersbenettoo.Theygainanewrevenuesourcesubscriberspayamonthlyeeo70ortheserviceandanewwaytokeepcustomersromdeectingtorivaloperators.LGhasevenusedtheservicetoexpanditsretailpresence:Thecompanynowsellsphonesandsignsupnewsubscribersat2,800bankbranches,inadditiontoits580storeronts.Thishasbecomeapillarooursalesdrive,saysLGsHyun.AsoAugust,LGhadsold.millionbanking-readyhandsets.
Anotherplus:Theservicegetsanewsetocustomershookedonusingtheir
cellphonesormorethanvoicecalls.Whereasothertrendynewmobileservicessuchasmultimediae-mail,videoclips,andmusicdownloadsappeallargelytotheyoung,bankingismostpopularamongpeopleintheir30sand40s.Tobetterservethesenewcomers,SKTelecom(SKM)maysoonstartoeringticketsalesandshoppingservicestoitsmobilebankingclients.Bankingwillbeanotherleaporwardorourdataservice,saysChaJinSeok,vice-presidentinchargeothemobilenancialdivisionoSK.
Korea:Mobilebankingtakeso.http://www.businessweek.com/magazine/content/04_39/b390068.htm
Lessons being learnedOurintentionherehasbeentopulltogetherarangeoactivitiesromaroundtheworld,andromabroadrangeostakeholders,toprovideevidenceotherevolutionunderway.Whileeveryoneislearningastheygo,onecandrawsomeearlylessons.
First,inBOPmarkets,asinallmarkets,therstruleistoknowthecustomer.TheBOPhassueredbothromalackoappreciationasanaccessibleandworthymarketandromanacutelackoharddataonlow-incomeindividualsaseconomicactors.TheexperienceintheITsectorandnewresearchisbeginningtoelevatethoseinbase-o-the-pyramidmarketstotheirully-justiedpositionasrealcustomers,onaparwithotherhigher-incomepopulationmarkets.
Second,toachievesuccessintheBOP,newbusinessmodelsareprovinganecessityortheBOPawillingnessandabilitytomoveawayromtraditionalAmarketmodels(highgrossmargin,highunitcost)andadapttotheeconomicrealitiesothe(nowmoreullyunderstood)consumers.Asacorollary,BOP-specicproductsandservices(asopposedtostrippeddownversionsotop-o-the-marketproductsandservices)designedaroundbetter
knowledgeothecustomer,andbasedonpurpose-builtadvancedtechnologyseemtobendingtraction.
Third,successulentrantsarebuildingromthegroundup,engaginglocalcommunitiesdeeplyandareappreciatingthepotentialsizeandstrengthothemarketandthuscommittingorthelonghaul.
Suggested urther readingCastello,SergioA.InnovativeTechnologiesinMicronanceorLatinAmerica:BuildingEectiveDeliveryChannels.5April2004.
CGAP.MobilePhonesorMicronance.CGAPBrie.April2006.
CGAP.UsingTechnologytoBuildInclusiveFinancialSystems.CGAPBrie.April2006.
CGAP.UsingTechnologytoBuildInclusiveFinancialSystems.FocusNoteNo.32.January2006.
Cracknell,David.ElectronicBankingorthePoor.MicroSaveBriengNote#3.
Cracknell,David,Ngurukie,Corrinne,andMurka,George.M-PESAPilot-TestRevieworFaulu/Vodaone.MicroSave.January23-27,2006.
Firpo,Janine.BankingtheUnbanked:TechnologysRoleinDeliveringAccessibleFinancialServicestothePoor.SEMBAConsulting.
Helms,Brigit.AccessorAll:BuildingInclusiveFinancialSystems.CGAP.2006.
Magenette,NicolasandLock,Digby.WhatWorks:ScalingMicronancewiththeRemoteTransactionSystem.IncreasingProductivityandScaleinRural
Micronance.WorldResourcesInstitute.August2005.
McGrath,JamesC.Micropayments:TheFinalFrontierorElectronicConsumerPayments.FederalReserveBankoPhiladelphia.June2006.
Mohiuddin,ShamarukhandHutto,Julie.ConnectingthePoor.ProgressivePolicyInstitute.March2005.
Smith,Sharon.WhatWorks:SmartCommunicationsExpandingNetworks,ExpandingProts.ProvidingTelecommunicationsServicestoLow-incomeMarketsinthePhilippines.WorldResourcesInstitute.September2004.
TheWorldBank.InormationandCommunicationsorDevelopment.GlobalTrendsandPolicies.2006.
WomensWorldBanking.UsingPalmPilotstoManageLoans.June2005.
Wright,GrahamA.N.,Hughes,Nick,Richardson,Brian,andCracknell,David.MobilePhone-BasedE-Banking:TheCustomerValueProposition.MicroSaveBriengNote#47.
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