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The Mobile Phone Financial Revolution
 

The Mobile Phone Financial Revolution

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    The Mobile Phone Financial Revolution The Mobile Phone Financial Revolution Presentation Transcript

    • The Mobile Phone Financial Revolution Workshop on AML/CFT Bangkok, June 24-26, 2008 Marina Solin Restricted - Confidential Information © GSM Association 2007 All GSMA meetings are conducted in full compliance with the GSMA’s anti-trust compliance policy PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Agenda ¢ GSM Association ¢ The commercial opportunity ¢ The GSMA MMT initiative ¢ The MNO mindset ¢ Challenges © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • GSM Association ¢ Founded in 1987, The GSM Association (GSMA) is a global trade association representing more than 750 GSM mobile phone operators across 218 territories and countries of the world. ¢ The Association's members represent more than 3 billion connections - over 86% of the world's mobile phone connections ¢ In addition, more than 180 manufacturers and suppliers support the Association's initiatives as associate members. ¢ The primary goals of the GSMA are to ensure mobile phones and wireless services work globally and are easily accessible, enhancing their value to individual customers and national economies, while creating new business opportunities for operators and their suppliers. © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The commercial opportunity © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The commercial opportunity © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The commercial opportunity ¢ Access to the facilities to receive money is often limited ¢ 0.5 million bank branches globally ¢ Only 1.4 million ATM’s ¢ Compared to almost 3 billion mobile customers worldwide © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The commercial opportunity © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The commercial opportunity Expanding the Addressable Market Creating new market segments Expanding the beneficiaries Current addressable Average remittance Beneficiaries today market £250bn USD$250 approx. 800m Average remittance Possible Total Market: USD$500bn+ <USD$250 beneficiaries 1.5-2bn In addition to creating strategic platform for a wave of new e-money services and solutions : international pre-pay top ups, payments, banking etc. © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Socio-economic benefits ¢ Improved financial access through reach of mobile networks ¢ Lower costs as mobile money removes the need for physical points of presence and ensures a timely and secure method of transaction. ¢ Proof of customer adoption - concept of 'mobile money‘ is extremely attractive to low income users in particular ¢ Driving growth and development - reducing remittance commission charges could increase the flow of formal remittances, boosting local economies. © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • THE GSMA MMT INITIATIVE © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • The MMT Working Group ¢ The Working Group, 40 member MNO’s representing more than 100 markets and 1 billion consumers © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Activities of GSMA MMT Programme ¢ GSMA MMT working group (approx. 40 members) ¢ Our partners: Western Union and MasterCard Worldwide ¢ GSMA Vendor Programme to increase speed of m-wallet solutions ¢ Regulatory work stream © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • How does MMT work? Main principle: multilateral hub capability ¢ Global processing companies e.g. MasterCard Worldwide ¢ Wholesale bank e.g. Citigroup, HSBC ¢ Wholesale switch e.g. Western Union, MoneyGram ¢ New Co's e.g. G Exchange, Smart Services Hub © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • GSMA MMT Objectives ¢ Enable millions of typically ‘un-banked’ poorer migrant workers access to very affordable remittances through the ubiquity, ease of use and scale of the GSM ecosystem. ¢ Position the operator community as leading the way in helping these poorer migrant workers, and in so doing secure public and governmental recognition. ¢ Secure appropriate role in remittance value chain for operators. ¢ Explore opportunities for commercialisation and a global rollout by GSMA members. ¢ Catalyze the growth of broader m-banking, m-payments and m- commerce. © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • MMT Programme Principles ¢ Expand accessibility ¢ Dramatically lower fees ¢ Enhance value to operators through share of fees, SMS traffic and customer loyalty. ¢ Address interoperability issues ¢ Partner with global financial players © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Laying the foundations for MMT © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • MNO mindset Where is the value for the MNO? ¢ Direct value - generated from transaction fees and increased telecoms usage to support the service (increased ARPU) ¢ Indirect value - from increased usage not directly linked to the service but catalysed by it – Reduced churn – Meet government service obligations and CSR agendas – Opportunity to up-sell (mobile content, move customers from prepaid to postpaid) © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Enabling regulatory environment ¢ MMT is designed to work in the current regulatory environment. ¢ We work together with established financial institutions (MasterCard, Western Union). ¢ MMT is secure and compliant with financial regulation ¢ However regulation is important to ensure customer adoption, innovation and a mobile experience © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com
    • Challenges ¢ Regulation ¢ Technology ¢ Cooperation with financial institutions ¢ Choosing the right business model ¢ Creating the right consumer experience (customer adoption) © GSM Association 2007 PDF created with pdfFactory Pro trial version www.pdffactory.com