Global savings forum final


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Global savings forum final

  1. 1. Carol Realini CEO, Obopay Twitter - carolrealini New Model for Technology-Enabled Financial Inclusion Global Savings Forum, Nov 2010
  2. 2. Mobile Branchless Banking • We know from early implementations that mobile-facilitated branchless banking at scale is a “game-changer” for financial inclusion • Key factors to scale: • Large agent network • Ease of enrollment (ease of personal authentication) • Important uses • Only a few places in the world will achieve scale with a simple implementation model and one or two players • For the rest, need an open collaborative model to achieve scale • Open collaborative model will also achieve an added benefit – more financial offerings and more choice when branchless banking scales
  3. 3. Participants in Open Collaborative Model Traditional Financial Service ProvidersRegulators Branchless Bankers Network Operators Interoperable Systems Merchants Innovators
  4. 4. Open, Trusted, Scalable and Interoperable Financial Network Multiple providers: Banks and Non Banks Agent Distribution Network Open Access to Financial Services Merchant Acceptance Network Collaboration is Key
  5. 5. Why is this so KEY • Most countries in the world where the need is great – Kenya success will be extremely difficult to replicate • Fragmented mobile market – challenging to create a Ubiquitous agent and merchant network • Investment for any single entity will be huge • Those that invest will struggle to scale if they try and do everything themselves Once a network is established (critical mass of agents, merchants, consumers, financial offerings), Open Collaborative Model will encourage: Highest value, more choice, more innovation, more utility Create “app-store” or “internet marketplace” for financial offerings to all.
  6. 6. Building Blocks of Open Collaborative Model Full range of services, choice Social Applications and Self Organizing Cost reduction via National ID and Disbursements Business Models for Shared Merchant – initial investment for “terminalization” Program model for P2P and Merchant Payment interoperability Open Access Program Rules – new and traditional provider participation encouraged Mobile Networks Interbank Money Movement and Settlement International Money Movement and Hubs Regulatory Framework, UID Users Open Collaborative Programs Enabling Infrastructure
  7. 7. Recommendation Private sector investments sans an open collaborative approach will achieve only a fraction of their true potential We recommend the creation of a funded initiative that will champion, conceive and execute a collaborative ecosystem in countries that have the need, motivated players and the regulatory environment to make it a real success In a world where half the adult population lacks affordable and convenient access to simple banking, we owe it to the underserved to move quickly to this model What is at stake is inclusive growth and empowerment of the poor powered by a self-sustainable framework
  8. 8. User Benefit of Open Collaborative Model • Start simple, seek to achieve full range of financial services • Empowers life and work • Accessibility • Affordability • Full range of offerings • Multiple options • User driven collaboration, applications, and content • Scale and Utility even in challenging markets
  9. 9. APPENDIX
  10. 10. Technology - Open Platform BANKING Banking System & Lending Platform Mobile Banking Platform Payment Collections and Settlement OPERATIONS AND MIS Credit Decisions And Analytics Central Registry Operations Management Platform MFI Gateway GATEWAYS Telecom Gateways and Adapters Merchant Gateways CUSTOMERS Account Management KYC Compliance and Risk Media and Advertising