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Mobile Money Agent Network Development in Haiti
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Mobile Money Agent Network Development in Haiti

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The Payment Innovations working group welcomed Nick Lesher of Open Revolution (www.openrev.com) to speak with Cameron Peake of Mercy Corps (www.mercycorps.org) on their experiences with mobile money ...

The Payment Innovations working group welcomed Nick Lesher of Open Revolution (www.openrev.com) to speak with Cameron Peake of Mercy Corps (www.mercycorps.org) on their experiences with mobile money agent network development in Haiti. We examine how NGOs can play a role in the development of healthy and sustainable mobile money agent networks.

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Mobile Money Agent Network Development in Haiti Mobile Money Agent Network Development in Haiti Presentation Transcript

  • Mobile Money Agent Networks Examining the NGO Sector’s Role
  • What is an Agent? 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. MNO Client AgentSource: Sarah Rotman, “Branchless Banking 101” March 2012 Bank
  • Roles of an Agent1) Promoting the product 2) Educating and Registering Costumers3) Facilitating Transactions
  • Mobile Money Agent Hierarchy (illustrative) “Super Agents” Financial Institutions (e.g. MFIs) Large Merchants / “Agents” Specialized Companies“Sub Agents” Local Retailers / Small Vendors
  • Who can be an Agent?National Post Office (Super Agent) Aggregator networks (Agent) Your local bookstore (sub-agent) Your local convenience store (sub agent)
  • Agent Business Case Being an agent can help small merchants generate more revenue for their local businessSource: CGAP: “Agent Management Toolkit” 2011
  • Agent Network Development:The Mercy Corps Haiti Experience
  • Table of Contents• Background & Context  Funding  Financial Inclusion  Unique Operating Environment• Haiti Case Study  Strategy  Approach  Execution  Lessons Learned  Potential Roles for NGOs
  • 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
  • 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.
  • 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
  • Haiti Case Study Mercy Corps ERP Operations
  • 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
  • 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
  • Haiti Case Study Bocozelle Blockhaus Centre VilleMac Donald
  • Haiti Case Study• Execution Mobilization & Sensitization • Airtime purchase/transfer as “the bridge” to mobile-$ Mobile Money Training • Pictograms and simulation Disbursements • Who hits send, to whom, when, and for how much? Mobile Money Agent Training • Interactive exercises, explaining “buckets of money”
  • Haiti Case Study m-$ 1. Cash-out 2. Change in Liquidity m-$Sub Agent Sub Agent • e-wallet balance m-$ User increases m-$ 2 1 • Cash on-hand decreases 3. Sub-Agent Rebalances 4. Additional Cash-outs m-$ m-$ m-$ Sub AgentSub Agent Agent m-$ m-$ User m-$ 1 2 1 2
  • Blockhaus Vendor Profile: Lundy MyslandeSex / Age: • Female / NAName 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
  • Centre Ville Vendor Profile: Alexis MoiseSex / Age: • Male / 50Name 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 productsAverage 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
  • Average Monthly T-Cash Sales in HTG (Dec ‘11 – Sep ’12)300,000250,000 248,056 188,164 Avg = 190,621 (~$4,766 USD) 199,026200,000150,000 127,240100,000 50,000 - Bocozelle Blockhaus Centre Ville Mac Donald
  • Perceived Disruption of Cash Sales due to T-Cash Yes No 100% 100% 91% 83% 82% 17% 18% 9% 0% 0%Bocozelle Blockhaus Centre Ville Mac Donald Overall
  • Time to Conduct T-Cash Transactions (Start vs. End of Program)
  • Sense of Preparedness to be a Mobile Money Agent Post Program
  • Haiti Case Study• Lessons Learned – Agent Mobilization & Training – Integrating Mobile Money – External Partnership Management
  • Haiti Case Study• Potential NGO Role(s) – Financier – Acquirer – Trainer – Service Promoter