digital financial services: essentials

Channels & Technology Enabling Financial Inclusion

Sonia Arenaza Director, Channels & Technology

Lauren Whitehead Summer Associate, Channels & Technology

August 2014

Table of Contents

2

I.  Channels & Technology Overview

II.  Test Your Knowledge: Trivia Questions

III.  Digital Financial Services

IV.  Mobile and Branchless Banking Ecosystem

V.  Case Exercise: Risks to Clients

VI.  Market Archetypes

VII.  References

Channels & Technology Overview

In working with delivery channels, we have developed a Channels Methodology consisting of 9 unique components:

Feasibility Study

Market Research & Value

Preposition

Business Case Definition

Business Case Assessment

Digital Service Implementation Testing Phase

Pilot Phase

Full Scale Roll-out

On-going Channel

Management

3

Risk Management

•  Tools

•  Guidelines

•  Best Practices

Each component is comprised of:

Table of Contents

4







VII.  References

Test Your Knowledge: Trivia Questions

How much do you know about Digital Financial Services and financial inclusion?

5

Photos courtesy of CGAP, USAID, Banking Beyond Branches, Financial Spread, and Kifiya

Agent Networks Non-Banking Correspondents

Mobile Banking/ Mobile Money/Branchless Banking

Channels & Technology Trivia

6

The world population is estimated at 7.2 Billion. Of these, how many people lack

access to formal financial services? A.  1 Billion B.  2.5 Billion C.  4 Billion D.  5.5 Billion

Photo courtesy of Visa


7

B. 2.5 billion people have no access to formal financial services.

According to the World Bank, 1.9 billion people worldwide have a mobile phone but no bank account. Photo courtesy of Visa


8

In which region of the world are banking correspondent agents most prevalent and

still leading the way? A.  Africa B.  Asia C.  Europe D.  Latin America E.  North America

Bonus points if you can identify which country!

9

Brazil

Latin America



10

In which region of the world is mobile money most prevalent and

still leading the way? A.  Africa B.  Asia C.  Europe D.  Latin America E.  North America

Bonus points if you can identify which country!

11

Kenya

Africa



12

What does P2P stand for? A.  Pesa-to-pesa B.  Pesa-to-provider C.  Provider-to-provider D.  Pesa-to-person E.  Person-to-person


13

What does P2P stand for? A.  Pesa-to-pesa B.  Pesa-to-provider C.  Provider-to-provider D.  Pesa-to-person E. Person-to-person


14

Which of the following is not a branchless banking channel:

A.  ATM B.  Agent (Mom & Pop Shops) C.  Bank Branch D.  Mobile Phone E.  Retail Shop


15

Which of the following is not a branchless banking channel:

A.  ATM B.  Agent (Mom & Pop Shops) C. Bank Branch D.  Mobile Phone E.  Retail Shop


16

Which of these terms refers to a form of financial service delivery that interacts

directly with clients? A.  Mobile Network Operators B.  Brick and Mortar Banking Locations C.  Agent Networks D.  Branchless Banking Channels E.  E-Banking


17

Which of these terms refers to a form of financial service delivery that

interacts directly with clients? A.  Mobile Network Operators B.  Brick and Mortar Banking Locations C. Agent Networks D.  Branchless Banking Channels E.  E-Banking

Table of Contents

18







VII.  References

Digital Financial Services

19 Photos courtesy of ACDI/VOCA, Mondato, Banking Beyond Branches, and Live Mint

Mobile Financial Services + Branchless Banking

Branchless Banking is the delivery of financial services outside conventional

branches by using technology channels such as cards, POS, ATMs, and mobile phones.

Mobile Financial Services refer to bank and non-bank provided financial services such as mobile payments, mobile money,

mobile wallets, and mobile banking.

Digital Financial Services combine…

What are Mobile Financial Services?

20

Mobile money, mobile banking, or mobile payments refer to the provision of financial services via mobile technology by either a financial institution, a mobile network operator (MNO), or a third-party provider.

For MNOs •  Increase average revenue per user (ARPU) •  Reduce prepay churn •  Reduce airtime distribution cost

•  Increase customer retention •  New sources of revenue

For Financial Institutions •  Improve presence and visibility •  Strength relationship with client and upsell

•  Provide stable, low cost products: loans, savings and other inclusive products like micro-insurance

What are the Incentives? •  Enable clients to access formal financial

services

•  Reduce travel time & commitments for clients to perform/receive payments

•  Save time that can be used for work and leisure

•  Save money that can be used on household expenses or invested in savings

Gives an institution the potential to •  Reach a broader base of clients in remote areas •  Encourage customer loyalty and adoption of

additional products and services

Why Mobile Financial Services?

Gives an institution the potential to:

What is Branchless Banking?

21

Branchless Banking is the delivery of financial services outside of conventional branches by using technology channels such as cards, POS, ATMs, and mobile phones to conduct transactions with clients.

Why Branchless Banking? •  Improve operational efficiency •  Offer better services and at lower costs to clients (clients spend

less time and money)

•  Better serve their existing customer base •  Reach out to customers (who live in rural areas)

•  Cross sell products: mobilize savings, insurance •  Leverage existing providers and distribution networks (retail

shops and stores, mom and pop shops)

•  Reduce infrastructure costs and gain operational efficiency

Gives an institution the potential to:

The use of technology enables scale and outreach

250,000 657,000 1,400,000

30,000,000

Estimated Worldwide Points of Presence

Western Unions Bank Branches Post Offices ATMs POS Devices

22

Mobile Phone Connections

6,800,000,000

Source: Net Hope

Mobile phone connections are more than 10k times Bank Branches and 4k times ATMs.

Mobile Phone Connections

23

Mobile Money is the predominant leader, especially in developing countries, including those where Accion operates

Accion in LatAm ü  Colombia ü  Peru ü  Ecuador ü  Brazil

Accion in Africa ü  Tanzania ü  Kenya ü  Ghana ü  Nigeria ü  Cameroon ü  Zambia ü  Zimbabwe

Accion in Asia ü  India ü  China

Source: GSMA, State of the Industry 2013

.. and its growth is expected to continue

24


Sub-Saharan Africa is the region with the highest number of mobile money services for the unbanked.

… though each region is different

25


Region with: •  The most registered

accounts: Sub-Saharan Africa (98.3M)

•  The most active accounts: Sub-Saharan Africa (42.4M)

•  Active/Registered account ratio: Best: Sub-Saharan Africa (43%)

Worst: MENA regions (5.3%)

Regional Statistics

Early sprinters were leading the way but there are also moderate growth trends and higher levels of adoptions

26


Growth rate

is much more varied

Early sprinters (fastest growing mobile money

services)

Table of Contents

27







VII.  References

Mobile and Branchless Banking Ecosystem

Who are the key players in the Digital Financial Services/ Mobile Banking ecosystem?

28 28

MNOs

Banks/ Financial Institutions

Tech Providers

Retailers Agents

Regulators

Donors

Users

Example of Mobile Money: mPesa in Kenya

29 29

Key Facts

https://www.youtube.com/watch?v=nEZ30K5dBWU

•  Launched in 2007 in Kenya, mobile money service is now in Tanzania, South Africa, Afghanistan, and India

•  Value Proposition: “Send Money Home”

•  17.5M registered customers

•  Paved the way for other financially inclusive products (e.g. Mshwari, Mkopa)

•  Transactions responsible for 31% of the $33.62 billion GDP of Kenya

•  35,000 agents generating $5BN USD/Yr

See Video

Source: Safaricom, GSMA, Quartz

Mobile money has the potential to reach the poor and rural

30

Source: GSMA, Jack and Suri, Mpesa Use by Daily Consumption

mPesa is used by both poor and rural people in Kenya. By 2011, more than 70% of people living under 1.25 $/day benefitted from the service.

Per

cent

age

of p

opul

atio

n (b

y pe

r cap

ita c

onsu

mpt

ion)

usi

ng m

Pes

a

31 31

Key Facts

…but there is a need for partnerships. Example of Partnership: mShwari (mPesa and CBA)

•  4,800,000 accounts; 1,300,000 loans

•  Average savings: USD $4.2 (Total USD $21M)

•  Outstanding Loans Day 30: 3.8% (Total USD $9.3M)

•  Average Loan Size: USD $13

•  Credit scoring algorithm uses savings/transactional data to assess amount available for loan; all transactions happen via mobile, no branch interactions involved

•  No fees for moving money between mPesa and mShwari

•  Savings accounts are eligible to all mPesa customers and consistent savers are rewarded while loans are eligible based on behavior

Source: CGAP, 2013 Photos courtesy of Think Mpesa and Kenyabwala

Example of Mobile Money: bKash in Bangladesh

32 32

Key Facts

•  Launched in 2011; bKash is a subsidiary of BRAC Bank, which is part of the BRAC microfinance group

•  80,000 agents

•  11M registered users (country has ~160M

inhabitants)

•  Average transaction size: US$27

•  Different from mPesa: •  Bank accounts •  Works with for four MNOs •  Started user base from base up

See Video

https://www.youtube.com/watch?v=Dj0e7EdCOOY

Example of Mobile Money: Daviplata in Colombia

33

•  Launched in Colombia in 2011 (owned by one of the largest local banks, Davivienda)

•  Open e-wallet with convenient cash-in and cash-out options

•  Works with any mobile phone •  Offers the following services:

•  Money transfers (domestic and international), Payments for services (partners/merchants), Payments of utilities, top-ups, cash in-out

•  More than 2M registered users, 800k unbanked

•  70k domestic transfers/month •  350k payments with 1600 partner companies

Key Facts

33

Implementing DFS is not without its challenges…

34

Agents: Issues with

networks, lack value proposition,

profitability, productivity, high

turnover

Customer: Low usage and adoption, literacy

Interoperability:

Lack of access to service between different networks

and providers

Business Case:

Lack of support, uncertainty, unpopularity

Regulation: Pervasive

regulations, restrictive KYC

and AML

Photo courtesy of GSMA


35 35

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

Agents are the leading way in provision of financial services in Latin America

36

5.6 9.7 19.9

34.2

50.7

6.1 9.3 21.1 23.6 26.1

5.7 8.5 10.8 14.8 18.6

0

20

40

60

2009 2010 2011 2012 2013

Colombia Mexico Peru Source: Banca de las Oportunidades, 2014; CNBV, 2014; ASBANC, 2014

Bank

Agen

t

Client

The trend of agents in Colombia, Mexico, and Peru implies that agents are on the rise.

Brazil: Agents help banks to reach more populations

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2007 2012

Total Banking Correspondents

Unique locations 377,786

95,849

CAGR

32%

0

500

1,000

1,500

2,000

2,500

3,000

0 0.01 to 5 5.01 to 25

25.01 to 100

>100

Mun

icip

aliti

es

Access points per 1,000 km sq.

Banking Correspondents

2000 2010

•  100% of municipalities have at least 2 outlets of regulated financial institutions •  94% of municipalities have at least 5 •  67% of Brazilians now live within 5km of an access point •  Banking correspondents are used primarily for bill payment

Source: Febraban, CGAP Research; Sanford and Cojocaru “Do Banking Correspondents improve financial inclusion?”: Evidence from a national survey in Brazil, Bankable Frontier Associates

Peru: Banks are succeeding in migrating transactions to cheaper channels

From 2007 to 2013, the Bank Agent channel has grown more than 700% in comparison to Tellers at the ATM.

Source: ASBANC and FIG

225

283

210

98

269

212

83

79

2013

+738%

483

11

25

45

2007

50

1,107 Teller Other Internet POS ATM

Bank Agent

Evolution of total transactions in the

banking system (mn of transactions)

Bank

Client

Branchless Banking: Cash-in

•  Client opens bank account (accessible by mobile phone, cards)

•  Exis=ng clients register/link their account with mobile phone

Agent opens bank account (accessible by mobile phone,

or POS)

2 Cash-‐in

3Electronic value registered in client’s account

4 Agent account debited

Client account credited

1 1

- +

Agen

t

Adapted from: CGAP

Bank

Client

Branchless Banking: Cash-out

1 Electronic value sent to agent

2 Cash-‐out

3Agent account

credited Client account

debited - +

Agen

t

3

Adapted from: CGAP


41 41

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

Retailers are well fitted to provide financial services

42

Well-positioned to enhance

value proposition

Direct Revenue Indirect Revenue

•  Fees, transaction, and float income

•  Large footprint of store locations

•  Financial Services takes limited square footage of floor space

•  No inventory to deal with

•  Increased foot traffic in stores •  Provides additional value to

existing customers •  Enhances knowledge of

customers (loyalty programs and data analytics)

•  Reach new customer segments

•  Diversify revenue streams

Adapted from CGAP, 2014 Boulder Microfinance Photo courtesy of GSMA

Example of Retailer Partner: Banco Azteca and Elektra in Mexico

43 43

Key Facts

•  Started in 2002 as a bank built on the existing infrastructure of Elektra departments stores

•  Over 7m Txs per day at a cost of 3 cents each Tx), and in-depth knowledge of customers

•  Savings accounts: 16m (US$ 3 BN)

•  Credit accounts: 18m (US$5 BN loan port.) •  Products offered: consumer / business /

personal loans, housing loans, savings accounts, term deposits, money transfers, insurance, pensions

•  Payments services: internet, telephone, ATMs

•  Loan officers reach out customers by using motorcycles and tablets

•  …though APR is 110%


44 44

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

What are the incentives for becoming an agent?

45

Agents are key drivers of the Mobile money / Mobile banking service

Additional Income

§ Agents receive fees/commissions based on the transactions they performed o  This can represent between 20% of total income (or 100%

when agent is dedicated shop for the service)

Increase foot traffic

§ Agents in Brazil process more Tx/day than agents in Kenya o  In Brazil, 73% of stores that are BCs confirm that the

volume of clients in the business has increased an average of 37%

Brand and recognition

§ Being an agent –specially from a top Bank or MNO- provides more prestige to the agent o  In South Africa, the MNO pays for marketing and

branding for the agent

Leverage network interoperability/lack of exclusivity

§  Freedom to work with other networks

§ Able to do many transactions with many banks and FIs

Agents can benefit from one or many of the following:

There are challenges with agents on the demand and supply sides …

46

Agents are key drivers of Mobile Money/ Mobile Banking services…

Supply (Agents/Entrepreneurs)

•  Turnover of agents •  Agents not fulfilling the selection criteria or

with low levels of education •  Concentration of commissions

•  Lack of biz case and profitable

•  Agents performance •  Dormant agents

•  Monitoring of agents (worsens when agent network grows)

Demand (Agent Network Managers)

•  Agent is not well trained and does not provide good service to customers

•  Agent does not identify a value proposition

•  Not enough capital to become an agent

•  Issues with liquidity to support transactions (which could lead to additional transportation cost to rebalance)

•  Lack of protection for thefts and robbery

High quality agents stay longer and have more transactions per month.

Agents are transforming Latin America ...but agents’ productivity remains a challenge

47 Source: FIG estimates with CNBV and ASBANC information

52

7

36

16

20

Evolution of transactions

per day, per agent, across countries

(# transactions)

Average of benchmarks

Countries are still struggling to increase agents’ productivity, but it also depends on the business model of each service.


48 48

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

Example Mobile Payments and Agent Network: Zoona

49 49

Key Facts

•  Launched in 2009; leading provider ahead of Airtel and MTN

•  Helps grow businesses by enabling easy, quick, and safe payments between suppliers and micro/small enterprises in emerging markets

•  Company’s DNA is payments solutions, financial services, and data

•  Previously engaged via OTC (over the counter), but now expanded into a mobile wallet offering

•  272 shops and is going to an aggregator model to scale network

•  P2P and bringing distributors and retailers to the ecosystem

Sandra Jere - Zoona Agent

Terry Simanya – Zoona Distributor

Example of an Agent Network Manager: GKN

50 50

Key Facts

•  Founded in Peru in 2007 as Globokas Peru, to extend the presence and coverage of financial and business institutions

•  2,000+ agents •  Serves financial institutions such as BBVA,

ScotiaBank, Caja Nuestra Gente, Caja Sullana with a multi-bank platform

•  Service offered: bill payments, deposits and withdrawals, bank transfers, credit fees payments, credit card payment, balance enquiry

•  Has increased network at a similar growth rate of the agent network market.

•  Agents with a higher levels of transactions remain in the network longer, regardless of potential offers from competitors.


51 51

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

Customer Experience: Time Lapse

52 Source: GSMA, 2013. Penetration and active user statistics compiled from GSMA 2012 Mobile Adoption Survey in Africa, Asia, and select LatAm countries

Awareness: the industry is very good at generating awareness

Registration: the industry is very good at registering users

Trial: the industry struggles to drive activity

Regular Use: the industry struggles to achieve regular usage, a lengthy process which can take an estimated 10.5 months for a user to

reach the 6th transaction

Active mobile money users by region

Customer Experience: Revenue Generated

53

Source: Mobile User Analytics: A Case Study in Mobile Agriculture, GSMA, 2014

•  Users typically grew “stuck” at

registration (59%) while fewer were “stuck” at trial (28%). Hurdle to overcome.

•  This represents a loss of value as regular use equates to 5x the revenue of trial

•  Countrywide campaigns did not garner a more active customer base than cheap and easy SMS blasts

•  Many providers expressed the desire to continue this analysis in the future

Key Findings

Potential risks to clients in using Digital Financial Services

1.  Lack of adequate information from providers

2.  Inadequate or lack of client care channel

3.  Data protection and security

4.  Fraud perpetrated against clients

5.  Data privacy

6.  Agent incompetence leads to lack of service

7.  Blocked access to funds or float

8.  Insufficient transparency

and information disclosure

9.  Agent misconduct or corruption

10.  Agent discrimination against clients

54

Aligned with the Smart Campaign’s Seven Principles

Photos courtesy of Brookings Institute

1.  Appropriate product design and delivery

2.  Prevention of over-indebtedness

3.  Transparency

4.  Responsible pricing

5.  Fair and respectful treatment of clients

6.  Privacy of client data

7.  Mechanisms for complaint resolution



3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency







3.  Transparency





Smart Campaign Seven Principles:

Table of Contents

55







VII.  References

Case Exercise: Risks to Clients

Case Exercise: Identify potential risks to consumers

56

When: -  Mrs. Prithi registers for the service, however, there is a power

outage and the system fails. What risks might this pose to Prithi?

-  Mrs. Prithi is illiterate and shares her PIN with the agent to perform transactions. What risks might this pose to Prithi?

Scenario 1: Airteam in Kyndia launches a new mobile money service in which customers can perform the following transactions: deposit, withdrawal, and transfer money to family and friends.

Photo courtesy of Cherie Blair Foundation

Case Exercise: Identify potential risks to consumers

57

Fraud perpetrated

against clients

Data Privacy and Security

Concern

Insufficient Transparency and Disclosure

Scenario 1: Airteam in Kyndia launches a new mobile money service in which customers can perform the following transactions: deposit, withdrawal, and transfer money to family and friends.

Photo courtesy of Cherie Blair Foundation

Case Exercise: Given the conditions of providing DFS, what might be potential risks to consumers?

58


However, when new customer James goes to a designated retailer for a withdrawal, the agent realizes: -  There is just enough cash on hand to fulfill James’ request but

the agent know that another client will come later to perform cash-out transactions. What risks might this pose to James?

Scenario 2: Stantbarb Bank partners with a local retailer to provide South Mafricans with reliable access to cash in/ cash out services in additional areas around the country where the bank does not have a branch. This saves Stantbarb on the cost of building and maintaining additional brick and mortar locations.

Photo courtesy of Afmi Network


59


Scenario 2: Stantbarb Bank partners with a local retailer to provide South Mafricans with reliable access to cash in/ cash out services in additional areas around the country where the bank does not have a branch. This saves Stantbarb on the cost of building and maintaining additional brick and mortar locations.

Photo courtesy of Afmi Network

Lack of Adequate

Information from Providers

Agent Misconduct

and Corruption

Agent Discriminates Due to Lack of

Liquidity


60


-  Users of the service (1 in 5) are sharing their pin numbers

with one another to streamline access to their accounts, and

-  Some individuals (1 in 7) are even sharing pins with agents to receive assistance with transactions.

What risks might this pose to users in the country?

Scenario 3: In Lanxania, Vocadom MNO has successfully launched its mobile money platform and expects to continue scaling throughout the country. The MNO contracts a research company to monitor customer’s experience. The research co. finds out that contrary to expectation:

Photo courtesy of Mobile Marketing Magazine


61


Scenario 3: In Lanxania, Vocadom MNO has successfully launched its mobile money platform and expects to continue scaling throughout the country. The MNO contracts a research company to monitor customer’s experience. The research co. finds out that contrary to expectation:

Photo courtesy of Mobile Marketing Magazine

Fraud Perpetrated

against Clients

Inadequate or Lack of Client Care Channel

Agent Incompetence Leads to Lack

of Service


62


-  She is 65km from town and will not return again for two weeks when

her son can bring his truck, and she was not given any information on how to contact either the bank or agent.

-  She needs to make a payment for her new seed stock, however, within five days’ time.

What risk has this service poses to Ana Maria?

Scenario 4: In the country of Watepala, potential customers attending a large festival are encouraged by traveling non-banking agents of Watepala Bank to sign up for new accounts with the bank. Ana Maria arrives home and quickly realizes that the agent incorrectly recorded the last digit of her account and she cannot gain access.

Photo courtesy of Women’s Worldwide Web


63


Scenario 4: In the country of Watepala, potential customers attending a large festival are encouraged by traveling non-banking agents of Watepala Bank to sign up for new accounts with the bank. Ana Maria arrives home and quickly realizes that the agent incorrectly recorded the last digit of her account and she cannot gain access.

Photo courtesy of Women’s Worldwide Web

Data Privacy in Jeopardy

Inadequate or Lack of Client Care Channel

Insufficient Transparency and Disclosure of Information


64


Scenario 5: Fernanda, a new agent in Crazil, learns that she can earn: -  0.5 reais commission for performing 1-50 tx -  0.7 reais for performing 51-500 tx -  1.0 reais for performing 501-1000 tx A client approaches Fernanda with 1100 reais. - How might she try to cheat the system to earn more commission on her transactions? - How might this be both fraud perpetrated against the provider of the service and a risk to the client?


65


Scenario 5: Fernanda, a new agent in Crazil, learns that she can earn: -  0.5 reais commission for performing 1-50 tx -  0.7 reais for performing 51-500 tx -  1.0 reais for performing 501-1000 tx A client approaches Fernanda with 1100 reais… She might attempt to coerce the client into performing several smaller transactions to accrue more commission than a large single transaction which is clearly a risk to the client as well as the provider. On the contrary, she might collude with the client by offering a small share of her larger commission which is a risk to the provider.


66 66

MNOs


Tech Providers

Retailers Agents

Regulators

Donors

Users

Regulators play a key role in balancing risk and quality access

67

Proportionality principle: The cost of regulating should not outweigh the impact of the risk

Source: based on G20 principles for innovative financial inclusion

Example of Regulation for Agents

68 68

Key Questions

•  Who can be an agent? •  What approvals are needed for

authorize operations of agents? •  Is the agent exclusive? •  What are the Customer Due

Diligence (CDD) / Antimoney Laundering (AML) norms?

•  How is liable for the behavior of the agent?

•  What is it considered a suspicious transaction for an agent?

•  Can the agent register clients?

Photo courtesy of SA

Table of Contents

69







VII.  References

Market Archetypes

Population density + GDP per capita are priming factors for financial services (access and quality)

70

a)  Adequate access

b)   Several actors in the market

a)  Limited/weak bank infrastructure

b)   Gov’t/social problems

a)  Low access b)   Weak infrastructure

a)  Adequate population and GDP per capita increases attractiveness of business and financial services

a)  Need for financial products and services

Which Financial Inclusion strategy prevails?

71

Thank you. Questions, comments ?

For more informa=on, please contact: Sonia Arenaza <[email protected]>

Table of Contents

73







VII.  References References

References 1.  Zoona Video:

–  Lelemba Phiri, MD speaks at the 4th MobileMoneyExpo in 2014 about being deliberate about financial inclusion in strategy and how Zoona fits the mold.

–  Watch the video at: https://www.youtube.com/watch?v=n5BPz-hjEa4&index=6&list=PLOcMS8DuX4uZbaHjjKrMdr1-lrFKh2kD_

2.  Bkash Video: –  CGAP investigates how bKash is making remittances easier in Bangladesh. –  Watch the video at:

http://www.cgap.org/photos-videos/bkash-making-remittances-easier-bangladesh

3.  Banco Azteca Video (English): –  World finance interviews Federico Gerdes, Treasurer of Banco Azteca, on the

conference floor of FELABAN 2013 in Miami. Federico Gerdes explains how Banco Azteca serves the bottom of the financial pyramid.

–  Watch the video at: https://www.youtube.com/watch?v=d1Ep4DNV7xc

4.  Banco Azteca Video (Spanish): –  Brief commercial advertising the retail and finance partnership between Elektra

and Banco Azteca. –  Watch the video at: https://www.youtube.com/watch?v=5zfBWNMhJgo

74

Suggested Advanced Viewing/Reading Material

1.  Video The Story of Mpesa

2.  Reading Evolution of Standards: Digital Financial Services and Microfinance Institutions (collaboration between Smart Campaign and Channels & Technology)

3.  Powerpoint (PDF) The Customer Journey to Regular Usage (GSMA, 2013) http://www.gsma.com/mobilefordevelopment/wp-content/uploads/2013/07/Customer-Journey-MMU-Global-Event-2013.pdf

75

Advanced Viewing: How did Mpesa begin?

76

This is for advanced viewing. The Story of Mpesa, TechChange Video,

6:13 min

Mpesa began in Kenya in 2007 through

an initiative led by Safaricom and

Vodacom in response to a call from DFID.

See Video