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Accenture Mobile Money 2014
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Accenture Mobile Money 2014

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Accenture Mobile Money 2014 Accenture Mobile Money 2014 Presentation Transcript

  • 22nd January 2014 Defining the business models which will drive mobile money to critical mass
  • Copyright © 2014 Accenture. All rights reserved. 2 Intro
  • Copyright © 2014 Accenture. All rights reserved. 3 Building critical mass is a function of supply, demand, and time Critical mass:  Occurs when there are sufficient numbers of adopters of a service that it becomes self-sustaining: existing users generate further uptake of the service A successful business model:  Identifies untapped value pools  Creates new sources of revenue  Actualizes the needs of consumers, creating value for all parties involved  Has the necessary infrastructure in place  Actively builds consumer demand
  • Copyright © 2014 Accenture. All rights reserved. 4 0 10 20 30 40 50 60 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 A successful example of building critical mass: Success factors for consumer up-take:  Created new value pool: Apps-based digital content  A single product, configurable to the exact needs of the individual consumer  A focus on shaping user experience, from content to physical store  E-Commerce portal (ITunes + App Store)  One-touch in-app mobile payments as a driver of app consumption  Highly effective marketing IPhone 1 IPhone 3G IPhone 3GS IPhone 4 IPhone 4S IPhone 5 Apple IPhone unit sales took 2 years to build critical mass IPhone Quarterly Unit Sales (M) “Inflection Point”
  • Copyright © 2014 Accenture. All rights reserved. 5 Successful business models will drive critical mass through 5 key factors 1. Tap into Value Pools that go beyond just the act of payment and into adjacent parts of the purchasing value chain 2. Identify the untapped value pools in existing ecosystems to build new revenue streams 3. Focus on servicing the underlying needs of the consumer to promote take-up 4. It will take time and investment to change consumer behavior 5. Collaboration between banks, telecos, regulators and governments is needed to create open, scalable and flexible platform which benefits the consumer
  • Copyright © 2014 Accenture. All rights reserved. 6 When looking for new value pools, the value of M-money for providers comes before and after the payment Banks and telcos can assume leadership positions in reshaping existing ecosystems 97-99% of the value in the purchasing value chain is outside the payment Pre Sale 30-60% value Sale 1-3% value Post Sale 20-50% value Read a review Social Media Compare Loyalty Write a review After sales care Pay online Pay in store Pay using mobile  Targeted Ads  Promotions  Coupons  Location based marketing  Social marketing  Analytics  Branch payment services  Mobile payments  Internet payments  Loyalty  Customer Care  Add-on sales  Social recommendations  Analytics Traditional focus of banks and telcos
  • Copyright © 2014 Accenture. All rights reserved. 7 The easiest way to get to the new value pools is to tap into existing ecosystems Communication Shopping Health Education Transportation Housing Travel Lifestyle Payments are the key enabler in providing for the needs of consumers Examples of ecosystem relationships:  Consumers & Merchants  Commuters & Transport providers  Students & Schools  Patients & Hospitals  Bloggers & Social Media  Merchants & Suppliers  Etc….
  • Copyright © 2014 Accenture. All rights reserved. 8 Example of a new ecosystem Value is created for the consumer, the service provider, and the ecosystem owner Belgacom BNP Paribas Fortis is a completely open e-commerce ecosystem: accessible to any smartphone user with a bank/credit card and a mobile data plan Every app on Belgacom BNP Parisbase Fortis can access  Mobile identification and security  Payment sources  Coupon storage and redemption  Ticketing (recurring and one-off)  Loyalty programs
  • Copyright © 2014 Accenture. All rights reserved. 9 Belgacom video
  • Copyright © 2014 Accenture. All rights reserved. 10 A choice between an open and closed loop system Historical precedence shows collaboration on common standards/platforms benefits all parties in the ecosystem Banks competing in their closed loops. Telecom providers have collaborated in creating a common remittance platform – which benefits consumers VS “We didn’t put enough effort into making a family. … The other side, coming later, made a family”
  • Copyright © 2014 Accenture. All rights reserved. 11 Focusing on the implied needs of consumers promotes Mobile Money usage towards critical mass “Some people say, give the customers what they want, but that’s not my approach. Our job is to figure out what they’re going to want before they do.” Steve Jobs Explicit Need?  GIVE MONEY TO FAMILY Implied Needs?  SAFETY OF FAMILY UNIT  SECURITY OF FUNDS  CONTROL OVER FAMILY SPENDING  VISIBLITY ON SPENDING HABITS  CONVENIENCE: WHEREVER, WHENEVER Which is more valued in the family ecosystem? OR $ $ $ $ $ Wife & Mother Husband & Father Family Helper Son
  • Copyright © 2014 Accenture. All rights reserved. 12 3pm 7 pm 10pm 8 am 12 pm Critical mass will be formed when consumer needs are truly met The key is to provide enriched, contextually relevant offerings aligned to consumer needs Consumer daily needs throughout a day Train to work: Mobile-based ticket ting and auto renewal Lunchtime: Earn loyalty points when paying on mobile Search online marketplace Analytics-driven recommendations Send Money to brother: Mobile P2P Shopping: Redeem targeted marketing offers
  • Copyright © 2014 Accenture. All rights reserved. 13 Examples of underlying user needs are not limited to individual consumers  Increase number of customers  Increase sales per customer  Find cheapest, most reliable suppliers  Manage and purchase additional inventory  Buy best, cheapest fertiliser  Buy cheapest, most suitable grain  Find most efficient distributors  Locate attractive local markets  Buy/Rent a tractor across multiple farmers  Locate most convenient warehousing  Pay employees  Procure Raw Materials at market prices SMEsMerchantsFarmers
  • Copyright © 2014 Accenture. All rights reserved. 14 Building disruptive business models requires investment & partnership Innovative marketing and consumer education required, in collaboration with banksa telcos and regulators, to drive critical mass Consumer familiarity and use Collaboration amongst banks, telecom providers and regulators  Consumer awareness is a key constraint to widespread adoption of M-Money. Potential users must be made aware of the benefits of moving to cashless payments  Providers should take the lead in educating consumers to the potential benefits of M-Money - Changing behaviors takes time  Stakeholders should identify where to cooperate and where to compete, whilst focusing on the interests of consumers  Regulators need to work with providers, including $ investments, to promote financial inclusion whilst acknowledging the value proposition for providers of M-Money services
  • Copyright © 2014 Accenture. All rights reserved. 15 5 Critical Factors to drive Critical Mass 1. Tap into Value Pools that go beyond just the act of payment and into adjacent parts of the purchasing value chain 2. Identify the untapped value pools in existing ecosystems to build new revenue streams 3. Focus on servicing the underlying needs of the consumer to promote take-up 4. It will take time and investment to change consumer behavior 5. Collaboration between banks, telecos, regulators and governments is needed to create open, scalable and flexible platform which benefits the consumer
  • Copyright © 2014 Accenture. All rights reserved. 16 Accenture Financial Services Innovation Center – Jakarta  The Financial Services Innovation Center (FSIC) was created to help our Financial Services clients design, build and run innovative and value adding mobile solutions.  Equipped with advanced tools and subject matter advisors with in-depth content knowledge, including financial inclusion  More than a “science museum”, its about breakthroughs derived from active workshopping and demos to help our clients on the road to being a mobile organization  Dedicated spaces with M-Payment, M- Banking, and M-Enterprise devices and applications Step 2: Define the opportunities Innovation: Definition of the client experience vision and exploration of opportunities Step 1: Explore the possibilities Insights: Multiple leading client experience viewpoints to inspire insights Step 3: Turn ideas into action Commitment: Alignment on the opportunities and an action plan to move forward
  • Copyright © 2014 Accenture. All rights reserved. 17 Thank you