Robi CashPlus ~Igniting the power within<br />GSMA Mobile Money Summit 2010 <br />Koji Ono, Chief Strategy Officer, Robi, ...
Bangladesh at a glance<br />Key Stats: <br /><ul><li>Area: 1,47,570 sq. km
Border length: 4,246 km
Population: 156 million
Literacy Rate : 48%
Mobile penetration : 35%
Banking penetration : 13%
GDP (PPP): $242.4 billion
GDP (Per Capita): $1,600
National Language: Bengali
Capital: Dhaka</li></ul>Source: CIA World Factbook<br />
Agriculture determines people’s lives andlivelihood in Bangladesh<br /><ul><li>  Contributing approx. 20% of country's GDP
  Employing around 50% of the total labor force
  Gradually transforming from subsistence to commercial </li></ul>Labour force by Occupation (2008 est.)<br />GDP Composit...
Worker’s Remittance sees robust growth(contributing 11% to GDP)<br /><ul><li> Ranked among the top 10 remittance earning c...
Total NRB =  6.6 million i.e. 4% of total population (as of Sep ’09)
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8.b

  1. 1. Robi CashPlus ~Igniting the power within<br />GSMA Mobile Money Summit 2010 <br />Koji Ono, Chief Strategy Officer, Robi, Bangladesh<br />Date : May 24, 2010<br />
  2. 2. Bangladesh at a glance<br />Key Stats: <br /><ul><li>Area: 1,47,570 sq. km
  3. 3. Border length: 4,246 km
  4. 4. Population: 156 million
  5. 5. Literacy Rate : 48%
  6. 6. Mobile penetration : 35%
  7. 7. Banking penetration : 13%
  8. 8. GDP (PPP): $242.4 billion
  9. 9. GDP (Per Capita): $1,600
  10. 10. National Language: Bengali
  11. 11. Capital: Dhaka</li></ul>Source: CIA World Factbook<br />
  12. 12. Agriculture determines people’s lives andlivelihood in Bangladesh<br /><ul><li> Contributing approx. 20% of country's GDP
  13. 13. Employing around 50% of the total labor force
  14. 14. Gradually transforming from subsistence to commercial </li></ul>Labour force by Occupation (2008 est.)<br />GDP Composition by Sector (2009 est.)<br />Source: CIA World Factbook<br />
  15. 15. Worker’s Remittance sees robust growth(contributing 11% to GDP)<br /><ul><li> Ranked among the top 10 remittance earning countries in the world.
  16. 16. Total NRB = 6.6 million i.e. 4% of total population (as of Sep ’09)
  17. 17. Avg. per month international employment = 40K
  18. 18. Avg. per month international remittance = BDT 605 million </li></ul>(only 50% of total, since others are from informal channels)<br /><ul><li> Common remittance issues:
  19. 19. inability to send money frequently
  20. 20. delays while sending
  21. 21. unsecured distribution
  22. 22. inconsistent delivery methods, etc.</li></ul> India<br /> China<br /> Mexico<br /> Philippines<br /> Poland<br /> Nigeria<br />Romania<br />Egypt<br />Bangladesh<br /> Vietnam <br />Source: Primary market study by Somra MBL <br />
  23. 23. Robi’s regional strength to work as a major<br />catalyst for m-Remittance<br />Source: Survey by Somra MBL Ltd., eBIS, R&I <br />
  24. 24. Connection with Malaysia – a unique advantage<br /><ul><li> Malaysia – Bangladesh corridor is a growing inward remittance channel
  25. 25. Celcom’s Mobile Banking license – a clear synergy advantage for Robi</li></ul>About 4% of the national population live abroad. Out of which:<br /><ul><li> Around 91% of them send remittance
  26. 26. Around 11% reside in Malaysia</li></li></ul><li>Converting insights into business modelNot beyond conventional wisdom<br />A study on 4,000 sample size suggests<br />TRADITIONAL MODEL<br />Households<br />83% unbanked<br />100%<br />with mobile<br />Key Issues: <br /><ul><li> Travel distance - avg. 1.5 – 3 km (those who use banking channel)
  27. 27. Service unavailability - Bank booths operational half day & 5 days a week
  28. 28. Charge on receiver -Tk.100 for every cash-out
  29. 29. transport
  30. 30. administrative
  31. 31. incidentals</li></ul>Remittance receiver<br />Formal/informal channels<br />60% agro-based activities <br />4% related to NRBs<br />80% funded by remittance<br />Cash-out (BDT)<br />Solution: <br /><ul><li> Use MNO distribution channel + technical network for fast & easy delivery
  32. 32. Ensure financial inclusion upto marginal population
  33. 33. Create opportunities for employment through training and education </li></ul>Migrant households rely heavily on remitted money<br />Only 2 ppl. in earning cycle, rest are dependents<br />Source: Survey by Somra MBL<br />
  34. 34. Looking deeper: Two unique challenges arethere for migrant households<br />Access to<br />information<br />and<br />facility<br />providers<br />
  35. 35. Economic use of the transferred money is a key concern – both for receivers and Govt.<br />Majority of the remitted money is spent on basic necessities or unproductive uses<br />Inefficient spending hardly contributes to the nation’s economic cycle<br />To leverage this, Robi has identified two major areas, investment in which will help in the country’s development<br />Related to agriculture<br />Related to human resource <br />Remittance Utilization % <br />Source: Building a future back home, The Economist 2008<br />
  36. 36. Robi goes one step ahead to bring in‘first of its kind’ ecosystem<br />Conventional MODEL<br />Key Benefits: <br /><ul><li> Travel distance – Fast & convenient access to nearest Robi Sheba/POS (420 spread nationally)
  37. 37. Service unavailability - Robi Sheba/POS operational min 12 hrs, 7 days a week
  38. 38. Charge on receiver – No charge on receiver end.</li></ul>Robi Sheba<br />Remittance receiver<br />Robi CashPlus MODEL<br />Sending money back home<br />Cash-out (BDT)<br />A partnership web to multiply use of remittance<br />ACI Agribusiness<br />G’land Training<br /><ul><li>largest integrator in Agriculture and Livestock and Fisheries
  39. 39. complete solution provider to farmers’ need
  40. 40. A leading manpower agency
  41. 41. Provides entrepreneurship and vocational trainings</li></ul>Skilled labour/NRB<br />Inward Remittance = Incremental economic value<br />
  42. 42. Success of the framework lies greatly onbuilding strong partnerships<br />To facilitate best possible use of remittance<br />To facilitate mobile remittance program<br /><ul><li> Partner with 2 non-bank institutions –</li></ul>ACI Agribusiness <br /> (largest integrator in agriculture, fisheries etc.)<br />Greenland Group <br />(govt. awarded vocational training & local/foreign placement organisation)<br /><ul><li>Partner with a number of banks </li></ul>(i) DBBL (ii) EBL (iii) BRAC<br /><ul><li> Create basic remittance disbursement service through Robi’s nationwide pay-point network.</li></li></ul><li>Robi CashPlus - a highly innovative framework to improve migrant family entrepreneurship and vocational skill<br />Cash Senders<br />Payment System<br />CashPlus 1<br />CashPlus 2<br />CashPlus 3<br />Institutions<br />Primary<br />Cash-out<br />Cash-in<br />Financing: Partner Banks<br />Training: ACI Agri.<br />PSP<br />Goods<br />Goods Buyer<br />Business / Govt.<br />Receiver<br />Agro-products<br />ACI Agri.<br />Robi<br />Wage Earners<br />PSO<br />Training: Greenland<br />Placement Institution<br />Labor<br />Local / Foreign<br />Transfer<br />Airtime<br />Cash<br />Payment<br />Utility<br />Purchase<br />Bank<br />DBBL / EBL / BRAC<br />Greenland<br />Services<br />
  43. 43. The Cash-in/Cash-out points play a pivotal rolein the service integration space<br /><ul><li> ACI Agribusiness
  44. 44. Greenland Training Centre
  45. 45. DBBL/EBL
  46. 46. Agricultural facility
  47. 47. Vocational training
  48. 48. MF/SME financing</li></li></ul><li>Partnerships can be extended to caterwider spectrum of facilities<br />Health<br />(Pharmaceuticals)<br />Consumer Goods<br />(ACI, Shopno)<br />Education<br />(English in School)<br />SME<br />(BRAC, NGOs)<br />Utilities<br />(Bill Payment)<br />
  49. 49. Key challenges likely to face<br />
  50. 50. Thank you<br />

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