Mobile Banking for Rural Africa
PAN AFRICAN BANK
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Key Decision Makers (That’s You!)• Board of Directors – Governance & Oversight
• Chief Executive Officer
• Executive Management – Steering Committee
– Chief Finance Officer
– Chief Marketing Officer
– Chief Information Officer
– Program Coordinator 1
Overview (What we’re going to tell you)
• Project Updates / Phase Review• New Corporate Social Responsibility (CSR) Efforts• Partnership Updates• Social Impact Statistics• Why should you invest in this project?• What are we asking for?
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Team
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Garry Johnson- Pursuing an M.S. in Entrepreneurship & Design
(Class of 2018)
George Munyua- CCNP, CCSE, MCSE- Former IT Infrastructure Architect at Equitel- BSc Entrepreneurship & Technology Innovation
(Class of 2019), University of Delaware
Opportunity & The Problem: Opportunity Gap
Opportunity:
- Recent success of M-Pesa- 3 and a half years after launch, over 70% of
households in Kenya and more importantly over 50% of the poor, unbanked and rural populations use the service.
Opportunity Gap:
- Low Financial Inclusion - 90% transactions cash - Under the mattress savings
VOC Plan
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The Voice of the Customer (VOC)
• Ethnographic Research
• Contextual Inquiry
• One-on-one or small-group interviews 6
Ethnographic Research
• Social Context- life events impact families- Rapid growth in youth
population
• Socioeconomic environment
- Poverty - low income households- financial literacy
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Contextual Inquiry
• Developing Customer Perspectives through One-on-One Interviews
- Lack of trust & confidence- Small savings- Credit collateral- Cash transactions- Marginalized
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Small Group Interviews
• Small Medium Enterprises (SME)
- Lack of capital- Cash transactions
• Rural Community Programs- Women Self Help- Youth Entrepreneurship- Donors & Charities 9
Customer Outcomes• Convenience
• Affordability
• Accessibility
• Microfinance tailored services: Small Loans, Savings, Insurance, Payments
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Data Evaluation
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Customer / Market
- IFC $100Bn Opportunity- 68% mobile money users- Globally less than 6%
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McKinsey - 80% Unbanked
Competitive LandscapeM-Pesa is currently available
in: 1) Kenya
2) Tanzania3) Egypt
4) Afghanistan5) India
6) South Africa7) Eastern Europe
CompetitorsPesaLink
- focused on high value money transfers
Equitel- 15% of the market w/ 1.1 billion
in transfers
*Currently, M-Pesa controls 85% of person-to-person money transfer valued at over $7 billion. 13
Business Model
• High volume, Low transaction charges
• Access to credit facilities - loans, credit scoring
• Bill Payments & Purchases - groceries, transport etc.
• Payment Remittance & Savings - social payments, wages
• Financial Products - budgeting, investments
• Digitization: Mobile wallet, Digital currency
Business Ambitions Customer Outcome
Pan Africa country expansion
Growth of retail and SME penetration
Low-cost business model1
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Lean Canvas
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Financials
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Costs- fixed- variable
- customer acquisition / optimization- cloud computing / database management
Revenue - accounts created- transaction charges- Interest on Loans
M-Pesa
Portfolio
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Bank Online
1. 2. 3. 4. 5.
New to our portfolio, fits seamlessly with our current offerings!
Project Overview
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Operational by Q4 2018
Needs:
1) Acquire Banking License2) $5 Million3) Project Development Team
a) Developersb) Project Managersc) Business Analysts
Phase 1 - Key Achievements
• First Telco in Africa to acquire a banking license!• Mobile Banking Digital Platform:
- Mobile Wallet: Micro Savings- Micro Credit with credit scoring- Bill Payments: Water/Electricity- Payment Remittance
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CSR Initiatives
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Transforming lives & livelihoods:
• Financial Literacy Program• Donor Charity Partnership• Innovation & Entrepreneurship
- Women Micro-entrepreneurs
- Youth Innovation hub- Diamond Challenge
CSR continued...
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Partnership w/ Samsung - Providing low-cost phones to increase access to
financial inclusion
Phase 1 - Key Achievements
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Phase 2 - Future projection
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Digital Financial Services Product Portfolio:
• Micro Investing• Micro Insurance
- Life, Health, Property etc
• Digital Learning Content - Financial literacy- Healthcare
Financial Breakdown & Timeline
Investment Summary Budget
• $1.25M - investment & insurance technology platforms• $.25M - CSR digital content ( Foundation Budget)
Total Project Cost = $1.5M
Project Timing
• 6 months to launch
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Phase 3 - Long Term Business Plan
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Payment Gateway for Cashless Ecosystem:
• Public Transport • Purchase Goods & Services• FinTech Partnerships - Google Pay, Braintree, Ripple
- VISA, Mastercard
Phase 3 Budget: $2M
Social Impact
Ethical Implications:
• Economic empowerment- 3000+ Loans disbursed- 5000+ trained in financial literacy
• Women in Leadership• 2000+ Jobs Created• 1800+ Enterprises created
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Recap (What we told you)
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• Project Updates / Phase Review• CSR Initiatives
– Financial Literacy Campaign• Partnership Updates
– Samsung, Youth Orgs• Social Impact • What are we asking for?
– Investment of $1.5M for phase II
Chief Information Officer+1 302 222 7777
Thank you!
www.panafricanbankgroup.com
PanAfricanBank PanAfricanBank