1. Mobile Banking

2. Mobile Banking will create a revolution in banking and
financial services in the emerging countries where most of the
population are still out of the financial services.
Specifically in Bangladesh there will be phenomenal growth.
Peoples leaving out-of-reach of traditional banking network, busy
profession, traffic congestion and most important is the new
generation who are interested for smart banking without step-into a
bank branch will quickly sign-up for this service.
Enterprises and the government organizations, which needs to
disburse or collect huge number of payments regularly, will be
benefited greatly.
Thus, Mobile Banking will bring huge benefit for all the eco-system
players like banks, agents, consumers, merchants, card networks
and the government.
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3. Mobile Banking Business
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4. TARGET CUSTOMER SEGMENTS
•Ministries
•Departments
•Projects
•AG offices units
•National Board of Revenue
•Government e
•Garment manufacturers and other industries
•Large business conglomerates
•Group of companies
•Real-state companies
•Utility companies
•Security companies
•Hospitals, diagnosis labs
•Employees of the above industries/companies
•Universities and other educational institutions
•Brokerage Houses
•All type of merchants like shops,
restaurants, superstores, travel agents,
cinema etc.
•Union Information Service Centers
•Mobile Network Operators
•NGOs
•Distribution companies
•Couriers
•Post office
•Bank’s own commission based agents
•Students
•Farmers/Doctors/Professionals
•Beneficiaries of international remittance
•Beneficiaries of pension, welfares and other
similar schemes
•Garments, industries, government and other
employees
•Contractors and suppliers
Consumers
EnterprisesGovernment
Merchants
Agents
3.a

5. GOALS AND OBJECTIVES
Mobile Banking project have specific goals of benefits for every
one of the eco-system players:
CONSUMERS, GOVERNMENT AND ENTERPRISES
• Banking and payments Anywhere, Anytime, Any Channel.
• Government introduces digital financial services for more efficiency and
transparency.
AGENTS
Execute transaction on-behalf of the bank and earn fees and
commission.
MERCHANTS
Acquire payments through a new channel which offer low financial
cost for merchant as well as bank.
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6. CARD NETWORKS
• Introduce new channel of acquiring payments.
MOBILE NETWORK OPERATORS
• Earn more revenue through network usage (voice, SMS, data, USSD etc.).
• Share service charges/commission /fees with the banks by delivering end-
customer service through their outlets/channel partners.
BANK
• Open new revenue stream through mobile financial services
• Offer various market specific services and increase customer base
• Reduce bank’s per customer acquisition cost
• Reduce bank’s per customer operational cost
• Reduce per transaction cost
• Divert retail banking load to consumers pocket and increase branch operation
efficiency
• Reduce cash management effort and cost
• Increase low cost deposit, thus reduce cost of fund and earn from the floats
• Create employment ‘out of the bank payroll’ and also within the payroll.
• Take competitive advantage over the competing banks
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7. MARKET OPPORTUNITIES
Source: http://en.wikipedia.org/wiki/Mobile_banking#Mobile_banking_in_the_world
As of the above pyramid, the new opportunities are in the middle segment of the pyramid
and the size is around 4.80 crore mobile users who does not have a bank account.
However, the upper segment with 1.95 crore people also a target for migration from other
bank by offering convenient and efficient services.
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8. OPERATIONAL MODEL
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9. SERVICES
Proposed Services:
• Mobile Wallet services
• National Money Transfers
• Merchant Payment Services
• Government/Enterprise Payment Services
• Local and International Remittance (inward)
• Bill Payment
• Mobile Airtime Top up (self, street and shop)
Future Services (subject to central bank approval and procuring
the modules):
• Mobile Reservation and Ticketing
• Internet Merchant Acquiring
• Mobile Marketing
• Mobile Brokerage
• National Hub Payment Services
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10. Mobile Banking Project Analysis
5 Years Customer Acquisition Plan
Assumptions Year-1 Year-2 Year-3 Year-4 Year-5
Existing Mobile Users in Bangladesh 7,52,00,000 8,39,00,000 9,14,00,000 9,78,00,000 10,31,00,000
Net Mobile Users (considering 50% duplicate) 3,76,00,000 4,19,50,000 4,57,00,000 4,89,00,000 5,15,50,000
No. of Banks offering Mobile Banking (appx) 5 8 12 18 25
Approximate Mobile Account 10% 15% 25% 30% 35%
Expected Mobile Banking Users in Bangladesh 37,60,000 62,92,500 1,14,25,000 1,46,70,000 1,80,42,500
Expected Market Share of IFIC Bank 15% 25% 20% 18% 15%
Projected Mobile Banking Customer of IFIC Bank 5,64,000 15,73,125 22,85,000 26,40,600 27,06,375
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11. ACQUISITION COSTS
Per Customer Acquisition Cost
Cost Head Commission (in BDT)
Registration 10.00
KYC Form 5.00
Misc. 3.00
Per customer acquisition cost: 18.00
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12. Per Customer Revenue Plan
TxnType Monthly
Txn.Qty
Avg.TxnValue
(BDT)
ServiceCharge Amount
(BDT)
Assumptions
Cash-in 2,000 500 0.50% 5,000 consideringlowincomegroupandunbankedcustomerdominancehaving2cash-inpm
Cash-outatAgent 4,000 300 2.00% 24,000 considering4cash-outpercustomerpermonth
P2P 2,000 300 1.00% 6,000 considering2transferpercustomerpermonth
P2G 9 10,000 1.00% 900 considering10%consumerwillmake1txnperyear
G2P 200 5,000 0.25% 2,500 considering20%govt.employee/govtpaymentbeneficiaryaccountwith1txnpm
E2P 400 4,500 0.25% 4,500 considering40%industrialworkers account
ATMCash-out 300 1,500 0.50% 2,250 10%consumer3txnpm
RemittanceIn 50 7,500 1.00% 3,750 5%consumer1txnpm
AirtimeTopup 5,000 20 1.00% 1,000 100%consumer5txnoftk.20pm
BillPayments 600 450 1.00% 2,700 20%customer3txnpm
P2M(physical) 1,000 500 1.00% 5,000 considering5purchaseby20%customerpm
P2M(online) 50 1,000 0.75% 375 considering5%consumerwith1txnpm
SVA-CASA 850 15,000 0.25% 31,875 considering15%customerhavingCASAaccountwith2txnpm,2%merchantdoing25txnpm
CASA-SVA 150 10,000 0.25% 3,750 15%customer1txnpm
LoanDisbursement 5 20,000 0.50% 500 6%customer1txnyear
LoanRecovery 50 2,500 0.25% 313 5%customer1txnpm
94,413
94.41
(For1,000customerBase)
Totalrevenue for1000customerpermonth:
Averagerevenuepercustomerpermonth:
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13. CAPEX (in BDT) Year-1 Year-2 Year-3 Year-4 Year-5
Mobile Banking Software 5,00,00,000 60,00,000 12,00,000 100,00,000 100,00,000
Hardware & 3rd Party SW 1,00,00,000 - 10,00,000 - 50,00,000
Data Center/Infra/Network 50,00,000 - - - -
Establishment 1,57,31,250 71,18,750 6,22,000 35,91,750 -
Total Capex 8,07,31,250 1,31,18,750 28,22,000 1,35,91,750 1,50,00,000
Avg. Depreciation 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750
Notes: Software SW price AMC
AMC+ AMC+ AMC+
Upgrade Up grade Upgrade
Notes: Hardware & DB Initial Setup Upgrade Upgrade
Notes: Establishment BDT 10 per customer per year
setup for Year-
1
upgrade for Year-
3 growth
Up grade for
Year-4 growth
Up grade for
Year-5 growth
Capital Expenditure (5 Year)
Operational Expense (5 Year)
Head Year Year-1 Year-2 Year-3 Year-4 Year-5
Number of our Mobile Account (IFIC Bank) 5,64,000 15,73,125 22,85,000 26,40,600 27,06,375
Market Communication (BDT 10 per
Customer/month) 6,76,80,000 18,87,75,000 27,42,00,000 31,68,72,000 32,47,65,000
Human Resource @ BDT 100 per customer 5,64,00,000 15,73,12,500 22,85,00,000 26,40,60,000 27,06,37,500
Data Centre/Network (BDT 4 per customer) 2,70,72,000 7,55,10,000 10,96,80,000 12,67,48,800 12,99,06,000
Total Operational Expense 15,11,52,000 42,15,97,500 61,23,80,000 70,76,80,800 72,53,08,500
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14. 13
Assumption of Deposit Collection
Head Year Year -1 Year -2 Year-3 Year- 4 Year -5
No. of projected mobile account in IFIC Bank 5,64,000 15,73,125 22,85,000 26,40,600 27,06,375
Consumer deposit
Expected No. of Consumer
(Considering 98% of the customer are consumer) 5,52,720 15,41,662 22,39,300 25,87,788 26,52,248
Expected Consumer Deposit
(@ BDT 600 per consumer) 33,16,32,000 92,49,97,500 1,34,35,80,000 1,55,26,72,800 1,59,13,48,500
Agent Deposit
Expected No. of Agents
(1.25% of Customers are agent) 7,050 19,664 28,563 33,008 33,830
(BDT 25000 per Agent; 17,62,50,000 49,16,01,563 71,40,62,500 82,51,87,500 84,57,42,188
Merchant Deposit
Percentage of Merchant A/C 0.10% 0.15% 0.20% 0.25% 0.30%
Expected No. of Merchants 564 2,360 4,570 6,602 8,119
Expected Deposit @ BDT 50000 per merchant 2,82,00,000 11,79,84,375 22,85,00,000 33,00,75,000 40,59,56,250
Enterprise Deposit
Percentage of Enterprise A/C 0.05% 0.08% 0.10% 0.12% 0.15%
Expected No. of Enterprise 282 1259 2285 3169 4060
Expected Deposit @ BDT 0.20 Crore per
Enterprise 56,40,00,000 2,51,70,00,000 4,57,00,00,000 6,33,74,40,000 8,11,91,25,000
Govt./Biller Deposit
Expected No. of Govt./Biller Accounts A/C 5 8 12 15 20
Approx. Govt. /Biller Accounts Deposit 150,00,00,000 200,00,00,000 250,00,00,000 300,00,00,000 400,00,00,000
Total Expected Deposit 260,00,82,000 605,15,83,438 935,61,42,500 1204,53,75,300 1496,21,71,938

15. Five Year Revenue Projection
Head Year Year-1 Year-2 Year-3 Year-4 Year-5
No. Customer (Cumulative) 5,64,000 15,73,125 22,85,000 26,40,600 27,06,375
Transaction Revenue 63,89,66,880 178,22,24,775 258,87,22,200 299,15,88,552 306,61,06,365
(-) VAT - 15% 9,58,45,032 26,73,33,716 38,83,08,330 44,87,38,283 45,99,15,955
(A) Transaction Revenue after deduction of VAT 54,31,21,848 151,48,91,059 220,04,13,870 254,28,50,269 260,61,90,410
(-) Parent Agent + Telco (20%)= (Ax 20%) 10,86,24,370 30,29,78,212 44,00,82,774 50,85,70,054 52,12,38,082
(-) Child Agent(50%)= (Ax50%) 27,15,60,924 75,74,45,529 110,02,06,935 127,14,25,135 130,30,95,205
a .(+) Bank Share (30%)= (Ax30%) 16,29,36,554 45,44,67,318 66,01,24,161 76,28,55,081 78,18,57,123
Total Expected Deposits 260,00,82,000 605,15,83,438 935,61,42,500 1204,53,75,300 1496,21,71,938
b. (+) Net Interest Income from deposit (5%) 13,00,04,100 30,25,79,172 46,78,07,125 60,22,68,765 74,81,08,597
(B) Gross Revenue Income of the Bank (a + b) 29,29,40,654 75,70,46,490 112,79,31,286 136,51,23,846 152,99,65,720
No. of new customer 5,64,000 10,09,125 7,11,875 3,55,600 65,775
Acquisition Cost (BDT 18 Per Customer) 1,01,52,000 1,81,64,250 1,28,13,750 64,00,800 11,83,950
Operation Expense per year 15,11,52,000 42,15,97,500 61,23,80,000 70,76,80,800 72,53,08,500
Avg. depreciation 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750
(C) Gross Revenue Expense of the Bank 18,63,56,750 46,48,14,500 65,02,46,500 73,91,34,350 75,15,45,200
Expected Net Revenue (B-C) 10,65,83,904 29,22,31,990 47,76,84,786 62,59,89,496 77,84,20,520
Less 30% Risk Factor 2,13,16,781 5,84,46,398 14,33,05,436 18,77,96,849 23,35,26,156
(D) Net Revenue 8,52,67,124 23,37,85,592 33,43,79,350 43,81,92,647 54,48,94,364
(E) Add: Avg. depreciation Carried Forward 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750 2,50,52,750
Profit Before Tax & Dep. (D+E) 11,03,19,874 25,88,38,342 35,94,32,100 46,32,45,397 56,99,47,114
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