elrico munoz spbd fiji - using the mobile phone as a financial delivery channel
TRANSCRIPT
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USING THE MOBILE PHONE AS FINANCIAL DELIVERY CHANNEL-- The Case of SPBD Fiji
Presented by: Elrico V. MunozGeneral Manager
SPBD Microfinance (Fiji) Ltd.
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ABOUT FIJI ISLANDS
• Total Population – 850,000, of which 87% are in the islands of Viti Levu and Vanua Levu.
• Population Density: 46/km2
• GDP per capita : $4,620• Mobile Phone Users: 315,000
SOURCE: Wikipedia, citing 2007 Fiji Census
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ABOUT SPBD MICROFINANCE FIJI
• Established in Dec 2010 as the third country operation of the South Pacific Business Development (SPBD) network.
• Currently has 5400 clients (of which 3,500 are borrowers) -- all of are women
• Operates in 3 branches – Suva, Sigatoka and Savusavu
• Loan portfolio – USD$660,000
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WHY USE THE MOBILE PHONE TECHNOLOGY?
• To reduce risks associated with cash handling• To increase efficiency of Field Officers• To provide more convenience to clients
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How Many Times Money Is Counted?The Way We Were
Client
Group
Centre
CentreManager
Cashier
Bank Teller
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2
3
4
5
6
7
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How Many Times Money Is Counted?The Direct Banking Solution
Client
Group
Centre
CentreManager
Bank Teller
1
2
3
4
5
6
Cashier
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How Many Times Money Is Counted?The Short-Lived Digicel Experiment
Client
Group
Centre
CentreManager
Digicel Agent
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2
3
4
5
6
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How Many Times Money Is Counted?The Vodafone MPaiSA Way
Client
SPBD
CentreManager
MPaisa Agent1
2
Exchanges Cash to eMoney
Pays SPBD with eMoney
Informs CM of Payment
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SPBD MPAISA SYSTEMMPAISA AGENT
E-FUND
SPBD REVOLVING
E-FUND
MPAISA AGENT
SPBD BANK ACCOUNT
VODAFONE HOLDING
ACCT
VODAFONE HOLDING
ACCT
SPBD CLIENT
E-money
E-money
E-money
CASH
E-money CASH
CHEQUE
CHEQUE
E-money
Loan Disbursement
Savings W/Wals
E-moneyLoan PaymentSavings Deposit
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WHAT WORKS?
• Reduces counting of money from 7 times to 2 times
• Removes cash handling of SPBD staff• Revolves eMoney instead of cash
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WHAT IS NOT WORKING?
SUPPLY SIDE• NETWORK Coverage limits• MPAiSA Agent limits:– Service areas– Liquidity
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WHAT IS NOT WORKING?
DEMAND SIDE• Mobile Phone Ownership limits• Technical limits:– Physical limits– Ability limits
• Psychological limits– Client– SPBD Staff
“80% consider using physical cash as most
comfortable mode, less than 50% trust MM, and
only 40% consider MM as a low cost service”
- PFIP, Mobile Money Attitudes and Perception
Omnibus Survey2012
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DID IT IMPROVE EFFICIENCY OF FIELD OFFICERS?
In a Way Yes....• Centre Meetings are more focused on
interaction with clients rather than just counting and recording payments
• Field Officers have more time doing office work after the field rather spend such time counting money for turnover to the Cashier
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DID IT IMPROVE BOTTOMLINE?
Not Really....• While cash counting was reduced• Back-Office Processes increased– eMoney liquidity maintenance– MPAiSA agent support– MPAiSA platform – SPBD MIS interphasing
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IS IT MORE CONVENIENT FOR CLIENTS?
Hmmm Yes and No....• Yes because they can pay anytime, No
because MPAiSA agents are a rare species and have limited liquidity
• Yes because they don’t have to pay bus fares to visit SPBD Office to withdraw savings, No because there are additional fees associated to paying SPBD and converting e-money to cash.
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IS IT MORE CONVENIENT FOR CLIENTS?
Hmmm Yes and No....• Yes because they know their payments are
safer from fraud and theft, No because they need to memorise several numbers: PIN, MPAiSA account codes and SPBD payment code
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CROSSING THE TECHNICAL DIVIDE
The Case for Common SIM for CentresOne Centre One SIM (OCOS) for exclusive use of SPBD payments
• To address issue of mobile phone ownership• To address issue technical and psychological
limits
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CROSS THE TECHNICAL DIVIDE
The Case for Common SIM for CentresOCOS what? How it supposed to work?
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CROSSING THE TECHNICAL DIVIDE
The Case for Common SIM for CentresOne Centre One SIM (OCOS) for exclusive use of SPBD payments
• Started on Pilot February this year• Centres are encouraged to be the MPAiSA
agents for their respective village• Existing SPBD-MPAiSA agents go roving
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QUO VADIS SPBD FIJI?
Be flexible• Loan disbursements and savings withdrawals
and 100% MPAiSA.• Collection -- For 2013– 50% of its Centres will be 100% MPAiSA – 30% Direct banking model – 20% Traditional Cash Collection
• Beyond 2013 increase MPAiSA use to 75% of Centres
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VINAKA VAKALEVUThank You!