Mobile Ubiquitous Banking
and the Future of Money
Image source: textually.org / Tuma Pesa
Welcome to our panel, Mobile Ubiquitous Computing and the Future of Money. I
would first like to thank Hugh Forrest and the organizers of SXSW Interactive for
having us today. [Cover slide]
----
TUMA PESA is a financial service offered by Babawatoto TUMA-PESA (e-money)
is an innovative mobile payment solution that enables customers to complete
transactions including person to person PESA transfer. It is aimed at millions of
Kenyan mobile phone customers. Send TUMA-PESA to anyone who has a Mobile
phone on any Kenyan phone network. TUMA PESA can be collected immediately at
any of the hundreds of shops and Agents that include banks, petrol station chains,
supermarkets, cybercafés, and many more independent retailers country wide in
Kenya.
More information:
http://www.babawatoto.com/index.php?option=com_content&view=article&id=85:tu
ma-pesa-&catid=1:latest-news&Itemid=75
Image source: textually.org / Tuma Pesa
1

Introductions
[Slide of panelists, one line bio] My name is Kyle Outlaw, and I work at Razorfish in
New York. I'm in the User Experience group, and I specialize in interaction design
for mobile applications and have also worked for several years with clients in the
financial services industry. With me today is Ajay Revels, design researcher at
Politemachines, Katherine Maher, Communications Officer at Unicef, Sacha Tueni,
Social Media Mgr at Vodafone, and Tom Limongello, Director of new business at
Crisp Wireless. Thank you all for joining today.
2

Kyle Outlaw Moderator
• Sr. Information Architect, Razorfish, NY
• Specialize in RIAs and mobile user experience
• FS Clients include: Citi, Morgan Stanley, Prudential, T. Rowe Price
• NYU Interactive Telecommunications Program (ITP)
• Previously at WorldNow (startup venture), Modem Media
3

Ajay Revels Panelist
• Design Researcher and Strategist
• User experience and design strategy web-based applications
• Ethnographic studies, workflow analysis, process mapping and
usability testing
• Financial Services Research at Razorfish
• Educated in biology, psychology and product design
4

Katherine Maher Panelist
• Partnerships and projects coordination for UNICEF's Division of
Communication
• Technology, advocacy and social interaction in the developing world
• Previously International Manager for HSBC Bank in the UK,
Germany, and Canada
• Background in geopolitical regional research
5

Sacha Tueni Panelist
• Partnership manager and social network strategy for Vodafone Group
• Social Network enthusiast and telecom addict
• Previously T-Mobile Austria and Red Bull in Turkey
• “Social Media is bigger than porn.”
6

Guillaume LeBleu Panelist
• Senior Systems Architect, Diebold Inc
• Co-founder in 2002 of Brixlogic (Banking middleware)
• Open Money advocate
• Writing about the Future of Money at http://lebleu.org
7

Tom Limongello Panelist
• Sr Dir Business Dev, Crisp Wireless
• Advises media clients on mobile channel strategies for content
delivery, advertising and mobile commerce
• CNN, People.com, The Huffington Post, Perez Hilton and Discovery
• Meme Creator: Twitter's Failwhale
• TNS in Shanghai, Unilever China
• MBA from the University of Chicago
8

Prologue
9

Way back in 2007 (Pre-iPhone), U.S. was a
relative newcomer to mobile banking…
U.S. mobile customers used mobile mostly for voice, only
recently beginning to utilize full data capabilities of their
phones
• Some banks tried it during the late ’90s, wap frustrated
users, dot com meltdown
• Banks and wireless companies were having difficulty
agreeing on how to charge customers
• Consumer had concerns about security
Image source: Bofa.mobi
So first off I'd like to briefly talk about how this panel came to be. A couple of years
ago while we researching mobile applications (this was pre-iPhone), we were
interested in how and when mobile was going to catch on the US. At the time,
clients really had a tough time envisioning their website or services on mobile. As
everyone's very aware, mobile was really just being used for voice and some email
here in the US. [Early phone banking UI]
10

Meanwhile in Korea and Japan
mobile customers were
• Accessing their checking and savings accounts,
pay bills, transfer money, etc.
• Making payments in place of cash or credit cards
• Sending money
• Using NFC-enabled Phones
Whereas in Japan, they were some really interesting things such as what you'd read
about in a William Gibson novel, such as Near-field communications, using that
technology for example in place of a subway card for example. In the area of
contact-less payments, Japan and Korea are well ahead of the game, to the point
where it seemed the US was never going to be able to catch up. [Slide: 2-3
examples of mobile money apps Japan, Korea]
11

The most radical use of mobile technologies,
however, was happening in Africa…
• Safaricom and Vodafone launched M-PESA
• Customers (the “Unbanked”) were bypassing the banking system altogether
using text messages to transfer money
• Virtual accounts could hold up to $700
• Customers could pay for goods and services with airtime minutes
Source: The Guardian
Meanwhile some even radical uses of mobile were happening in Kenya. This
example is fairly well known by now, I'll touch on it briefly here. In Kenya safarcom,
the national phone company and Vodafone teamed up to offer banking services to
customers that for various reasons did not have access to formal banking services.
M-Pesa enabled customers to transfer money to friends and family, pay for goods
and services, [water payment image], get money out of an ATM and so on,
effectively doing an end-run around the system. But even more interesting was that
these customers were beginning use other forms of currency, such as using airtime
to pay for goods and services. [Slide - M-Pesa Vodafone]
12

Kenya’s M-Pesa case study: key
takeaways
• Rather than merely “leapfrogging”, countries like Kenya were
innovating
• This initiative was not started by the banks
• These technologies were spawning virtual currencies
• Mobile technologies are enabling individuals to become Banks
(P2P lending, virtual accounts)
So I found this case study particularly compelling for a few reasons. [Slide: three
takeaways from M-Pesa] First we normally think of technologies having a trickle-
down effect in other words advances in technology happen in developed countries
and than can be used in so-called underdeveloped countries to leapfrog, in theory.
But what is starting happen is that the most radical innovations are actually coming
out third-world countries like Kenya (and by the way there are numerous other
examples of these that I hope to touch upon later). So that's one thing.
Secondly this initiative was not started by banks, it was created by telecoms, one
local and one global.
And third: we are starting to see the emergence of virtual currencies such as airtime
being created that are enabled by new technologies such as mobile devices.
Fourth: technologies, is this mobile phones (and there are some examples to of P2P
lending networks which I hope to get into as well) are enabling customers to get
access to money services that they previously didn't have access to, whether it was
because there wasn't any bank available locally OR they simply didn't trust the
bank. But also these services enable individuals to effectively BECOME banks, as
services such as M-Pesa enable them to store money in virtual accounts and
transfer or lend money to friends and family easily.
13

Three Themes for today’s discussion:
So out of this comes three premises that I'd like to probe with the panelists today:
14

Three Themes for today’s discussion:
1. Trust
Trust, the lubricant of the global economy, has been severely
compromised (think bailouts). However, technologies such as social media
and mobile devices will lead to the creation of micro-economies (friends,
family, close associates) based on trust.
1. Trust
Trust, the lubricant of the global economy, has been severly compromised.
However, echnologies such as social media and mobile devices will lead to the
creation of micro-economies (friends, family, close associates)
15

Three Themes for today’s discussion:
1. Trust
Trust, the lubricant of the global economy, has been severely
compromised (think bailouts). However, technologies such as social media
and mobile devices will lead to the creation of micro-economies (friends,
family, close associates) based on trust.
2. Transformation
Our concept of money is about to be radically reformed and the innovation
will not come from the banks.
2. Transformation
Our concept of money is about to be radically reformed and the innovation will not
come from the banks.
16

Three Themes for today’s discussion:
1. Trust
Trust, the lubricant of the global economy, has been severely
compromised (think bailouts). However, technologies such as social media
and mobile devices will lead to the creation of micro-economies (friends,
family, close associates) based on trust.
2. Transformation
Our concept of money is about to be radically reformed and the innovation
will not come from the banks.
3. Trickle Up
Innovation will happen bottom up, in the case of global finance and
payments underdeveloped countries will offer a path for the rebuilding of
financial services in the largest economies.
3. Trickle Up
Innovation will happen bottom up, in the case of global finance and payments
underdeveloped countries will offer a path for the rebuilding of financial services in
the largest economies.
17

2 billion unbanked individuals
1 billion have a mobile phone
50% have access to services
Katherine, you have a very impressive background in development in third world
nations and financial services as well. I'd like to know what you think of this idea of
trickle-up: are countries like Kenya learning from countries like or is the case that
we are learning more from them?
[Katherine's Slides]
CGAP - the World Bank’s consultative group to assist the poor.

any expense (x) the
“
African population is a big
expense.
”
- clay shirky

“ expense (x) the is a
any
unbanked population
big expense.
”

mobile payments are NOT
mobile banking
Mobile banking implies access to accounts in a bank. Mobile banking is
what happens where infrastructure supports accounts and traditional
banking services, including savings and current accounts and
accumulated interest. Mobile payments are transactional encounters
using mobiles.

mobile payments are your
mobile wallet
Think of what is in your wallet right now. $100? I always take out $100
when I visit the ATM. It’s a small amount for frequent, immediate
transactions. It’s not a large balance. It doesn’t stay there long. It
doesn’t give me time to earn interest on it - in fact, that’s why it’s in my
wallet. My real money is earning interest by staying in the bank.

why are mobile payments so
important?
I have a map that makes it pretty clear.

Population density

66% of africa’s population is now reached by mobile phone signal

how does the mobile payment
system work?
how does the mobile payment system work in developing nations?

Agents
Operators Customers
Agents provide cash-in, cash out. Agents keep the system running.
Agents can be any local retailer, ranging from a cigarette stand to an
bank-authorized dealer.
Operators provide the infrastructure for the mobile payments.
Customers utilize the system.

what can the unbanked do
with mobile payments?
Remember, mobile payments are not mobile banking. Nonetheless, it’s
caught on - what’s the reason?

individuals transfer money.
consumers pay merchants.
entrepreneurs pay labor.
Remittances between families and individuals. head of household
working in cities with househould in the countryside, transfer payments
for immediate needs.
Consumers can pay merchants or service providers, like taxis, grocers,
or! airtime dealers
Entreprenuers can pay for services or labor - allowing for better transfer
of capital in the informal economy

what’s next?
- is currency the same? will currency remain based in money? or will it
become airtime? what is the next step?
- economic opportunities - how are mobile transactions spreading
economic opportunities to people in teh developing world? for example,
texteagle
- incentivizing and supporting development - using airtime, small
payments to facilitate uptake of behaviors and infrastructure
- the expansion of microfinance and microcredit through agents and
remote operators.

Three Themes for today’s discussion:
1. Trust
Trust, the lubricant of the global economy, has been severely compromised (think bailouts).
However, technologies such as social media and mobile devices will lead to the creation of
micro-economies (friends, family, close associates) based on trust.
2. Transformation
Our concept of money is about to be radically reformed and the
innovation will not come from the banks.
3. Trickle Up
Innovation will happen bottom up, in the case of global finance and payments underdeveloped
countries will offer a path for the rebuilding of financial services in the largest economies.
I'd like to turn it over to Guillaume. Guillaume I understand that by day you are a
software architect working with financial services clients, at night you run a well
renowned blog about sustainable currency and the future of money. Could you tell
us a little bit about your thoughts on how our conception of money will be
transformed?
[Guillaume's Slides]
Let's turn it over to Tom Limongello. So Tom, on the subject of transformation, we
often hear that the U.S. is kind of slack in the area of mobile, and in the area of
mobile finance and payments in particular. So I'd like to know if you think this is the
case, and also if you where you think innovation will come from, will it be the banks,
telecoms, or startups? Do you think the US will have a leadership role in this?
[Tom's Slides]
32

Boom
&
Bust
Ajay I'd like to ask you about the concept of trust. As a design researcher, you have
substantial experience in user experience and financial services and I'd like to know
your take on this concept of trust...
[Ajay's Slides]

craft surplus goods
services
skills

trade cargo
relationships
loans

FX
bank trust
bond
credit

greed expensive
mistrust
destructive

fear devalue
relationships
future

shut houses
insurance
stock

pain skills
relationships
surplus

hope airdrop
new start
share

now?
what

credo local
trust
tangible

cell jobs
FX
security

craft new skills
new services
new surplus

Ajay Revels
Research & Strategy
Politemachines ajay@politemachines.com
Got questions?
I’m all ears!

Sacha, you have intimate knowledge in this area, given your expertise in social
media and mobile telecommunications. I'd like you to share some of your thoughts
on this...
[Sacha's Slides]

safeguarded
moved

bank
x bn $
vodafone
>60 bn $
10%
6bn $

safeguarded
moved

citibank
.account #
.name
.address
.branch
.swif/bic
sacha

Imagine a world, where today’s aging, less useful and even
dangerous financial systems are replaced by (or mixed with) more
disruptive innovations and exchanges. Imagine yourself deprived of
all of today’s financial resources. Maybe you’re a refugee or
stateless. Yet you still have your handset and laptop and Internet and
a broadband cellphone connection….
KashKlash.net, an open forum and web project focusing
on alternative economies in a post-money future. What will such a
world look like? How will the concept of value be measured?
What concepts will shape the formal and informal economies

Hypothetical question – what should bill do?
• The Bill & Melinda Gates Foundation has donated $12.5 toward the Mobile
Money for the Unbanked (MMU)
• Initiative to allowing citizens of third world countries to bank with their mobile
phones
• 20 individual projects in Africa, Asia, and Latin America
Source: Ars Technica
61

Resources
• Textually – a blog about texting, SMS and MMS http://textually.org
• Ars Technica: Bill Gates donates $12.5 million towards mobile banking
http://arstechnica.com/microsoft/news/2009/02/bill-gates-donates-125-million-
towards-mobile-banking.arsMoney
• The Guardian: Kenya sets world first with money transfers by mobile
http://www.guardian.co.uk/money/2007/mar/20/kenya.mobilephones
• Payment News http://paymentnews.com
62

Special Thanks
• SXSW: Hugh Forrest and Dinah Sanders (metagrrrl)
• Razorfish: Shiv Singh, David Deal, Marcelo Marer
63

Connect
Twitter: @unbanked
64

Thank You!
Image source: textually.org / Tuma Pesa
TUMA PESA is a financial service offered by Babawatoto TUMA-PESA (e-money)
is an innovative mobile payment solution that enables customers to complete
transactions including person to person PESA transfer. It is aimed at millions of
Kenyan mobile phone customers. Send TUMA-PESA to anyone who has a Mobile
phone on any Kenyan phone network. TUMA PESA can be collected immediately at
any of the hundreds of shops and Agents that include banks, petrol station chains,
supermarkets, cybercafés, and many more independent retailers country wide in
Kenya.
http://www.babawatoto.com/index.php?option=com_content&view=article&id=85:tu
ma-pesa-&catid=1:latest-news&Itemid=75
65