mobile money agent networks

Mobile Money Agent Networks

Examining the NGO Sector’s Role

What is an Agent?

Agent

Client

A person or business that is contracted to facilitate transactions for users. The most important of these are cash-in and cash-out (deposits/withdrawals). Agents bridge the gap between

traditional brick and mortar bank branches and potential down market clients.

Bank

MNO

Source: Sarah Rotman, “Branchless Banking 101” March 2012

Roles of an Agent

2) Educating and Registering Costumers

1) Promoting the product

3) Facilitating Transactions

Mobile Money Agent Hierarchy(illustrative)

“Super Agents” Financial Institutions(e.g. MFIs)

“Agents”Large Merchants /

Specialized Companies

“Sub Agents” Local Retailers / Small Vendors

Who can be an Agent?

Your local convenience store (sub agent) Your local bookstore (sub-agent)

National Post Office (Super Agent) Aggregator networks (Agent)

Agent Business CaseBeing an agent can help small merchants generate more

revenue for their local business

Source: CGAP: “Agent Management Toolkit” 2011

Agent Network Development: The Mercy Corps Haiti Experience

Table of Contents• Background & Context

FundingFinancial InclusionUnique Operating Environment

• Haiti Case StudyStrategy ApproachExecutionLessons Learned Potential Roles for NGOs

Background & Context

• Funding – Sizable flows of donor funds in response to the earthquake; flexible funding for innovation

• Financial Inclusion – Core mission objective for Mercy Corps: enhancing market-driven financial inclusion among underserved communities

Background & Context

• Unique Operating Environment –Logistical/implementation challenges on

the ground created an opportunity to explore alternative delivery channels

Distinct context for mobile money integration : massive earthquake, no prior country office presence, staff “churn”, etc.

Haiti Case Study

• Strategy – a) Focus activities in regions that received large influxes of IDPs post-earthquake; b) Provide financial assistance via alternative delivery mechanisms c) flexible funding and a TA grant from USAID allowed us more room to experiment

Haiti Case Study

Mercy Corps ERP Operations

Haiti Case Study• Approach

Which partners? Trilogy/Voila Proactive relationship development

Which programs? Cash-for-work Unconditional cash transfers Food security (Kenbe-La)

Which participants? Selecting beneficiaries and merchants Aligning program objectives with funding parameters

Haiti Case Study• Kenbe-La Program Overview

– Recurring conditional cash transfer program to alleviate food security concerns among vulnerable HHs

– 9 month program that targeted 5 districts in St. Marc and 2 surrounding towns,

– Engaged ~7,000 beneficiaries and ~100 merchants; monthly disbursements = 1,618 HTG (~40 USD)

– Program parameters allowed for incubation of merchants from acceptance points to agents

Haiti Case Study

Mac Donald

Centre Ville

Blockhaus

Bocozelle

Haiti Case Study

• ExecutionMobilization & Sensitization

• Airtime purchase/transfer as “the bridge” to mobile-$Mobile Money Training

• Pictograms and simulationDisbursements

• Who hits send, to whom, when, and for how much?Mobile Money Agent Training

• Interactive exercises, explaining “buckets of money”

Haiti Case Study1. Cash-out

m-$ User

m-$ Sub Agent

3. Sub-Agent Rebalances

• e-wallet balance increases

m-$ Sub Agent

2. Change in Liquiditym-$

Sub Agent

• Cash on-hand decreases

m-$

m-$

4. Additional Cash-outsm-$

Agentm-$ User

m-$ Sub Agent

m-$

12

12 12

Blockhaus Vendor Profile: Lundy Myslande

Sex / Age:• Female / NA

Name of Business / Launch Date:• Rosie Boutique / 2009 (3 yrs)

Source of Start-up Capital & Plans for Business:• Source: Personal savings then small loan to grow her

inventory• Plans: Increase her inventory; diversify products to

include “brand name” items; purchase refrigerator to sell meats (poultry, beef)

Average cash sales pre-Kenbe La program (monthly):• ~$1,925 USD (~77,000 HTG)Average T-Cash sales from Kenbe La clients (monthly):• ~$2,900 USD (~116,050 HTG)Average number of Kenbe La clients (monthly):• 70

Centre Ville Vendor Profile:Alexis Moise

Sex / Age:• Male / 50

Name of Business / Launch Date:• Betabara Store / 2004 (8 yrs)

Source of Start-up Capital & Plans for Business:• Source: Personal savings• Plans: Increase the size of the store and offer an even wider

selection of products

Average cash sales pre-Kenbe La program (monthly):• ~$6,750 USD (~270,000 HTG)

Average T-Cash sales from Kenbe La clients (monthly):• ~$18,420 USD (~737,035 HTG)Average number of Kenbe La clients (monthly):• 302

Average Monthly T-Cash Sales in HTG (Dec ‘11 – Sep ’12)

Bocozelle Blockhaus Centre Ville Mac Donald -

50,000

100,000

150,000

200,000

250,000

300,000

188,164

127,240

248,056

199,026 Avg = 190,621 (~$4,766 USD)

Bocozelle Blockhaus Centre Ville Mac Donald Overall0%

17% 18%

0%9%

100%

83% 82%

100%91%

Yes No

Perceived Disruption of Cash Sales due to T-Cash

Time to Conduct T-Cash Transactions (Start vs. End of Program)

Sense of Preparedness to be a Mobile Money Agent Post Program

Haiti Case Study

• Lessons Learned– Agent Mobilization & Training– Integrating Mobile Money– External Partnership Management

Haiti Case Study

• Potential NGO Role(s)– Financier– Acquirer– Trainer– Service Promoter