the future of mfs - efse · confidential trend 1: innovation in micro retail products micro credit:...
TRANSCRIPT
CONFIDENTIAL
The future of MFS
Aiaze Mitha, Neu-Anspach, 20 November 2013
CONFIDENTIAL
Key developments are happening in a number of areas…
Data
mining
Inter-
operability
Business
solutions
Micro retail
products
User experience
2
CONFIDENTIAL
Trend 1: Innovation in micro retail products
Micro Credit: Loan distribution over mobile wallets. Example: M-Shwari in Kenya
Micro Savings: Building assets by saving little amounts of money on a timely basisExample: M-Kesho, M-Shwari in Kenya
Micro Insurance: Protect low-income against specific risks (life, home, personal accident…)Example: Mi-life in Ghana, Vivo in Brazil, Codensa-
Mapfre in Colombia
Data
mining
Inter-
operability
Business
solutions
Micro retail
products
User experience
3
CONFIDENTIAL
MFS 1.0
MFS 2.0
• Unlock the real value of
MFS service
• Distribution of innovative
and more sophisticated
products
• Tailored products that fit
the needs of potential
customers
• Top-up purchase
• P2P transfers
• Bill payment
• Merchant payment
• Value-added services
• Mobile lifeline services
• Financial products‒ Micro-credit‒ Micro-insurance‒ Micro-savings
Gradual shift towards more sophisticated micro-retail products
4
CONFIDENTIAL
Main achievements:
Launched in November 2012
70,000 M-Shwari accounts were opened
the first day)
Distribution network: >60,000 agents (M-
PESA agents)
Ksh 976 million(~USD 11.25 million)
saved as of 27/02/2013
Ksh 123 million (~USD 1.42 millions) is
the amount of loan disbursed as of
27/02/2013
Product description:
M-shwari account opening directly through
M-Pesa account; no need to visit a
physical branch
No charge to move money to/from M-Pesa
and M-Shwari (M-Pesa limits apply)
Micro-savings: save from Ksh 1. Interest
earned on the savings balance
Micro-credit: access loan of a min of Ksh
100 anytime. Loan is instantly received on
the M-PESA account, payable within 30
days and renewable. Attract a 7.5% fee.
M-Shwari is an account that facilitates access to savings and micro-credit for M-PESA customers
5
CONFIDENTIAL
Main achievements:
Established in 2011 in Kenya
Provides Solar power to 30,000 Kenyans
1,000 new users each week
Team of 200 staff
Distribution in over 750 points of sales
countrywide
Product description:
Solar-powered lighting and
mobile charging to rural Kenyans
Leasing model
Payments are sent via M-PESA
Once customer has fully paid for
the value of the product, he owns
the product and can continue to
use it freely
M-Kopa provides innovative energy solutions to people in Kenya using the Mobile Channel
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CONFIDENTIAL
Main achievements:
Founded in 2011
Operates in Philippines,
Colombia and Mexico
The community has tens of
thousands of members in over
35 countries
Every 60-90 days, the
community member doubles
Product description:
Customer creates a profile on the platform
and upload a photo
Customer then connects his social
networks (facebook, twitter…) and invites
friends and family to create his "Trusted
Network“
Customer then needs to meet a few other
requirements like being a salaried
employee, having a bank account to
receive a loan (education, medical
expenses…)
Lenddo provides Micro Loans to consumers based on a social credit score
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CONFIDENTIAL
Trend 2: innovation in business solutions
B2B solution for cash collection at point-of-sales for large distribution companies
B2C bulk payment solution for payroll deposit - especially for remote workers (sugar, coffee industries…) –social pensions etc.
Additional functionalities around logistics, marketing insights, inventory finance
Data
mining
Inter-
operability
Business
solutions
Micro retail
products
User experience
8
CONFIDENTIAL
B2B payment collection products increase operational efficiency and reduce costs related to payment collection and security
DIGITAL PAYMENTS CASH PAYMENTS
Goods Goods
Consumer goods Distributors Retailer
$$$$
Corporate bank Local bank Cash
X
9
CONFIDENTIAL
Government
Distribution companies
Health institutions
Agriculture
Efficiently disbursing social
payments to their
beneficiaries
Incurring high costs/risks for collecting payments from their point of sales
Ways to improve patient consultation payments
Order placement within their supply chains
Logistics
Marketing insights
Inventory financing
End-to-end FS
Challenges Innovation
Ecosystem approach
10
CONFIDENTIAL
Trend 3: Use of new data available
Use of Data Mining / Analytics tools to:
Monitor the service performance and understand customer’s behaviors
Identification of Mobile Money adopters and services that are likely to be used
Leverage social networks and communities
Data
mining
Inter-
operability
Business
solutions
Micro retail
products
User experience
11
CONFIDENTIAL
Distribution Analytics Marketing Analytics
• Create town-level indicators to monitor their performance & identify priority areas for potential improvement
• Leverage the best mapping visualizations
• Create new indicators, ratios & indexes to enrich insights (e.g. stock management ratios, physical cash-out estimate)
• Identify cash corridors for improved cash flow management
• Identify under-penetrated voice corridors
• Cluster Mobile Money user base to understand the different behavior patterns & improve offering / campaigns
• Predict who is likely to adopt Mobile Money within the overall mobile base & who is likely to adopt a new service with data mining techniques
• Leverage social network analysis to understand viral influence & community impact in Mobile Money adoption & usage development
Real Impact enables performance monitoring at granular level through Analytical tools
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CONFIDENTIAL
Trend 4: transforming user experience
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CONFIDENTIAL
Trend 5: interoperability
Typical interoperability issues:
Can agents be shared between providers?
Can mobile wallet systems talk to each other?
What role for a shared central platform that services bank and MNOs?
What implications on the payment system architecture?
Data
mining
Inter-
operability
Business
solutions
Micro retail
products
User experience
14