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Leveraging existing Mobile Money services for VAS
adoption
Naveed Ahmed ChoudhuryHead of M-Commerce, Citycell
(a JV of SingTel & Pacific Telecom Bangladesh)January 31,2013
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
Outline•Bangladesh overview•M-Commerce industry•Citycell in M-Commerce•Mobile payments•Current technologies•Segment without mobile•Way forward
Outline of presentation• Bangladesh overview• M-Commerce industry• Citycell in M-Commerce• M-Commerce Service & VAS adoption• Maximising revenue in current
business model• New Marketing strategies, Loyalty &
rewards
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
Bangladesh: country overview
•Population>160 million.
•GDP : US $ 282 billion (PPP)
•Growth rate: 6%(approx.)
•GDP/capita: US$1970 (PPP)
•Bank access: only 13%. But mobile subscribers>90 mln*
So there is a huge opportunity to provide access to banking services through Mobile phones.
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
Remittance
Source: worldbank
2005 2006 2007 2008 2009 20100
2,000
4,000
6,000
8,000
10,000
12,000
Migrant remittance inflows to Bangladesh
Migrant remittance Inflows (US$ million)
– International remittance accounts for 10% of national GDP.
– Channels:• Formal: Banks, Money transfer
organizations, Postal services etc.• Informal: Hundi or hawala, hand
delivery, travel agencies etc.
– Existing channels are • Costly• Time consuming• Bureaucratic etc.M-Commerce can simplify remittance receiving.
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
M-Commerce landscapeM-Commerce landscape• Bank-driven model: 22 Banks
given approval.• Only 14 banks able to launch
service.• DBBL, partnering with Citycell
first to launch M-Commerce in March 2011.
• Citycell as an MNO provides retailer footprint and network connectivity.
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• Citycell pioneered launch of Mobile Banking partnering with a local Bank.
• As per regulatory frame work, Banks have ownership of product, pricing, campaigns etc. MNO provides retailers and network.
• Citycell has introduced innovative uses of M-Commerce e.g. retailer commission payment(partnering with DBBL).
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
A growing market• Main players:Bkash(2.2) &
DBBL(1) million accounts. Total 3.3 million(approx.) accounts.
• Total number of M-Banking accounts was 0.7 million(approx.) in May 2012.
• So > 400% growth in eight months.
• New player Bank entering landscape.
• New services e.g. international remittance, deposit schemes to be introduced soon.
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
M-Commerce & VAS adoptionMaturing and upgrading the Telecom customer
Mobile voice
SMS
Various VAS e.g. SMS based, IVR based, USSD based VAS
Internet access & services
A large part of the unbanked segment is in this part. As they are exposed more & more to SMS,IVR & USSD for using M-Commerce services , it will be easier for them to adopt new VAS services.M-Commerce services is helping technology
adoption.
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
Maximising revenue
•Launch various services for growth in transactions e.g. Mobile payment.
•Target the unbanked who do not have mobile phones.
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www.citycell.com c2008. Pacific Bangladesh Telecom Limited. All Rights Reserved
Marketing strategy,Loyalty & rewards
•Set up a reward & loyalty program for high-value users.
•Tie up M-Commerce with Telecom services.
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