Download - Mobile Money Agent Networks
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Mobile Money Agent Networks
Examining the NGO Sector’s Role
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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
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Roles of an Agent
2) Educating and Registering Costumers
1) Promoting the product
3) Facilitating Transactions
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Mobile Money Agent Hierarchy(illustrative)
“Super Agents” Financial Institutions(e.g. MFIs)
“Agents”Large Merchants /
Specialized Companies
“Sub Agents” Local Retailers / Small Vendors
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Who can be an Agent?
Your local convenience store (sub agent) Your local bookstore (sub-agent)
National Post Office (Super Agent) Aggregator networks (Agent)
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Agent Business CaseBeing an agent can help small merchants generate more
revenue for their local business
Source: CGAP: “Agent Management Toolkit” 2011
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Agent Network Development: The Mercy Corps Haiti Experience
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Table of Contents• Background & Context
FundingFinancial InclusionUnique Operating Environment
• Haiti Case StudyStrategy ApproachExecutionLessons Learned Potential Roles for NGOs
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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
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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.
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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
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Haiti Case Study
Mercy Corps ERP Operations
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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
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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
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Haiti Case Study
Mac Donald
Centre Ville
Blockhaus
Bocozelle
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Haiti Case Study
• ExecutionMobilization & Sensitization
• Airtime purchase/transfer as “the bridge” to mobile-$Mobile Money Training
• Pictograms and simulationDisbursements
• Who hits send, to whom, when, and for how much?Mobile Money Agent Training
• Interactive exercises, explaining “buckets of money”
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Haiti Case Study1. Cash-out
m-$ 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
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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
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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
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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)
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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
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Time to Conduct T-Cash Transactions (Start vs. End of Program)
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Sense of Preparedness to be a Mobile Money Agent Post Program
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Haiti Case Study
• Lessons Learned– Agent Mobilization & Training– Integrating Mobile Money– External Partnership Management
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Haiti Case Study
• Potential NGO Role(s)– Financier– Acquirer– Trainer– Service Promoter