8.b

Robi CashPlus ~Igniting the power within
GSMA Mobile Money Summit 2010
Koji Ono, Chief Strategy Officer, Robi, Bangladesh
Date : May 24, 2010

Bangladesh at a glance
Key Stats:
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
Source: CIA World Factbook

Agriculture determines people’s lives andlivelihood in Bangladesh
Contributing approx. 20% of country's GDP
Employing around 50% of the total labor force
Gradually transforming from subsistence to commercial
Labour force by Occupation (2008 est.)
GDP Composition by Sector (2009 est.)
Source: CIA World Factbook

Worker’s Remittance sees robust growth(contributing 11% to GDP)
Ranked among the top 10 remittance earning countries in the world.
Total NRB = 6.6 million i.e. 4% of total population (as of Sep ’09)
Avg. per month international employment = 40K
Avg. per month international remittance = BDT 605 million
(only 50% of total, since others are from informal channels)
Common remittance issues:
inability to send money frequently
delays while sending
unsecured distribution
inconsistent delivery methods, etc.
India
China
Mexico
Philippines
Poland
Nigeria
Romania
Egypt
Bangladesh
Vietnam
Source: Primary market study by Somra MBL

Robi’s regional strength to work as a major
catalyst for m-Remittance
Source: Survey by Somra MBL Ltd., eBIS, R&I

Connection with Malaysia – a unique advantage
Malaysia – Bangladesh corridor is a growing inward remittance channel
Celcom’s Mobile Banking license – a clear synergy advantage for Robi
About 4% of the national population live abroad. Out of which:
Around 91% of them send remittance
Around 11% reside in Malaysia

Converting insights into business modelNot beyond conventional wisdom
A study on 4,000 sample size suggests
TRADITIONAL MODEL
Households
83% unbanked
100%
with mobile
Key Issues:
Travel distance - avg. 1.5 – 3 km (those who use banking channel)
Service unavailability - Bank booths operational half day & 5 days a week
Charge on receiver -Tk.100 for every cash-out
transport
administrative
incidentals
Remittance receiver
Formal/informal channels
60% agro-based activities
4% related to NRBs
80% funded by remittance
Cash-out (BDT)
Solution:
Use MNO distribution channel + technical network for fast & easy delivery
Ensure financial inclusion upto marginal population
Create opportunities for employment through training and education
Migrant households rely heavily on remitted money
Only 2 ppl. in earning cycle, rest are dependents
Source: Survey by Somra MBL

Looking deeper: Two unique challenges arethere for migrant households
Access to
information
and
facility
providers

Economic use of the transferred money is a key concern – both for receivers and Govt.
Majority of the remitted money is spent on basic necessities or unproductive uses
Inefficient spending hardly contributes to the nation’s economic cycle
To leverage this, Robi has identified two major areas, investment in which will help in the country’s development
Related to agriculture
Related to human resource
Remittance Utilization %
Source: Building a future back home, The Economist 2008

Robi goes one step ahead to bring in‘first of its kind’ ecosystem
Conventional MODEL
Key Benefits:
Travel distance – Fast & convenient access to nearest Robi Sheba/POS (420 spread nationally)
Service unavailability - Robi Sheba/POS operational min 12 hrs, 7 days a week
Charge on receiver – No charge on receiver end.
Robi Sheba
Remittance receiver
Robi CashPlus MODEL
Sending money back home
Cash-out (BDT)
A partnership web to multiply use of remittance
ACI Agribusiness
G’land Training
largest integrator in Agriculture and Livestock and Fisheries
complete solution provider to farmers’ need
A leading manpower agency
Provides entrepreneurship and vocational trainings
Skilled labour/NRB
Inward Remittance = Incremental economic value

Success of the framework lies greatly onbuilding strong partnerships
To facilitate best possible use of remittance
To facilitate mobile remittance program
Partner with 2 non-bank institutions –
ACI Agribusiness
(largest integrator in agriculture, fisheries etc.)
Greenland Group
(govt. awarded vocational training & local/foreign placement organisation)
Partner with a number of banks
(i) DBBL (ii) EBL (iii) BRAC
Create basic remittance disbursement service through Robi’s nationwide pay-point network.

Robi CashPlus - a highly innovative framework to improve migrant family entrepreneurship and vocational skill
Cash Senders
Payment System
CashPlus 1
CashPlus 2
CashPlus 3
Institutions
Primary
Cash-out
Cash-in
Financing: Partner Banks
Training: ACI Agri.
PSP
Goods
Goods Buyer
Business / Govt.
Receiver
Agro-products
ACI Agri.
Robi
Wage Earners
PSO
Training: Greenland
Placement Institution
Labor
Local / Foreign
Transfer
Airtime
Cash
Payment
Utility
Purchase
Bank
DBBL / EBL / BRAC
Greenland
Services

The Cash-in/Cash-out points play a pivotal rolein the service integration space
ACI Agribusiness
Greenland Training Centre
DBBL/EBL
Agricultural facility
Vocational training
MF/SME financing

Partnerships can be extended to caterwider spectrum of facilities
Health
(Pharmaceuticals)
Consumer Goods
(ACI, Shopno)
Education
(English in School)
SME
(BRAC, NGOs)
Utilities
(Bill Payment)

Key challenges likely to face

Thank you

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8.b

by Camilo Tellez on Jun 08, 2010

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