mobile banking by sol trumbo
DESCRIPTION
What is Mobile Money? Which models are ongoing now? Almost one hundred Can we classify these models in order to understand better what's going on? YesTRANSCRIPT
MOBILE MONEY & MOBILE BANKING
THE RAISING BRANCHELSS BANKING INDUSTRY
What is mobile money?
Person to Person (P2P)
Mobile Banking
Person to Business (P2B)
It refers to a suite of financial services offered through mobile phones and other handheld mobile devices (Jenkins; 2008, Harvard Kennedy School)
Check balance, deposits…
Therefore within mobile money we include:
Is the delivery of financial services outside conventional bank branches using information and communications technologies and nonbank retail agents. (Consultative Group to Assist the Poor; 2009)
Branchless Banking
79 live deployments86 planned deployments
Deployment tracker
http://www.wirelessintelligence.com/mobile-money
Mobile Money and Branchless Banking Worldwide
MODELS OF MOBILE MONEY
Additive models
Transformational models
Numerous and very diverse
We need a classification:
Mobile Money is merely an extra channel to access to financial services
Mobile Money provides access to financial services to the unbanked population
MODELS OF MOBILE MONEYAdditive models Money transfers
Bill Payments
Savings
Insurances
Loans
Mobile Money
MODELS OF MOBILE MONEYAdditive models – Branchless Banking
MODELS OF MOBILE MONEYTransformational models
Money transfers
Bill Payments
No Bank account is needed
MAIN ACTORS
Market penetration
Ownership of technology
Legal limits
Expertise and legal rights
Traditional model no profitable in developing countries
Legislation is the key Policies and market
regulation Limits for non-financial
institutions
COMBINATION ACTORSOnly Telco company Only Bank company
Partnerships
TRANSFORMATIONAL MODELS M-PESA - G-CASH Kenya Country Philippines Apr 2007 Launched Oct 2004
SAFARICOM Company G-GLOBE 9 m Users of m-banking 2 m19.296 Agents countrywide 1.500
Service allows usersMoney transferBill Payment
Based on:SMSRetail agents
ADDITIVE MODELS
COUNTRY BrazilLAUNCHED 2002 approximately COMPANIES Bradesco, Caixa Economica
Federal, Banco do Brasil, Banco Lemon
USERS BRANCHLESS BANKING 13.000.000 AGENTS COUNTRYWIDE 130.000
BRANCHLESS BANKING
Service allows usersMoney transferBill PaymentGovernment welfare payments
Extensive use of retails agents
COUNTRY South Africa
LAUNCHED 2004
COMPANIES MTN, FNB, MoPay, Wizzit, Standard Bank
USERS 1.5 m
ADDITIVE MODELS
Wide legislation in relation with mobile money
Government support - Legislation and distribution of welfare payments
CONCLUSIONS
Main questions for the future
Companies involved
New products and services
Security
Telcos ----------------Banks
Legislation
Consumers, Governments, Companies
Convenience for retail agentsInternet
Savings, Loans
Competition, interoperability
What can we learn from the current models?
CONCLUSIONS
Reaching the unbanked
Accessibility is essentialNew players in old markets
Re-using existing resources
Still low revenues – no profitableCountry profile determinant
